Hybrid Classes
We provide offline, online and recorded lectures in the same amount.
Personalised Mentoring
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant
Topicwise Mindmaps
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
Quality Content
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.
Monthly DNA
India overtakes Hong Kong to become 4th-largest stock market recently. India's stock market capitalization crossed USD 4 trillion for the first time, with about half of that reportedly coming in the past 4 years. The top 3 stock markets are the U.S., China, and Japan.
06 February, 2024
Stock market
Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New and Renewable Energy (MNRE), solar power installed capacity in India has reached around 73.31 GW as of 2023. Solar power has the major share in the country’s current renewable energy capacity, which stands at around 180 GW. In total solar capacity, Rajasthan is at top with 18.7GW followed by Gujarat. As of 2023, Rooftop solar installed capacity is around 11.08 GW. Gujarat (2.8 GW) tops…
06 February, 2024
Energy
Over 24.8 crore people moved out of poverty in India in nine years: NITI report. The Index Released by - Niti Aayog, which is the nodal agency to release Multidimensional Poverty (MDP) report for States and Union Territories. Purpose - Plays a role in assessing advancements towards Sustainable Development Goals (SDGs) 1.2. SDG 1.2. - By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to regional definitions. Multidimensional Poverty - Poverty – According to the World Bank, those who are unable to earn 2.15 dollar per day are living…
04 February, 2024
Poverty
Rs 17,490 crore has been set aside for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, to bolster domestic electrolyser manufacturing, green hydrogen production. About Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme It is a subcomponent of National Green Hydrogen Mission. Aim: To bolster domestic electrolyser manufacturing and green hydrogen production. In the initial stage, two distinct financial incentive mechanisms were proposed with an outlay of ? 17,490 crore up to 2029-30: Incentive for manufacturing of electrolysers Incentive for production of green hydrogen. Depending on the markets and technology development, specific incentive schemes and programmes will continue to evolve as the Mission progresses. Implementing…
03 February, 2024
Energy
The Year 2023 marks the beginning of ‘Amrit Kaal’ - the 25-year period beginning from the 75th anniversary of its independence on 15th August 2022, leading up to the centenary of its Independence, towards a futuristic, prosperous, inclusive and developed society, distinguished by a human-centric approach at its core. India continues to be one of the fastest-growing economies of the world. The country's second quarter growth, 7.6 per cent, has been then highest in the world and India's GDP growth for the April-June quarter was 7.8 per cent. Putting into effect the roadmap for making India a $5 trillion economy, the…
01 February, 2024
Government policies and interventions
The Supreme Court, while dismissing a petition for quashing a complaint filed by the Serious Fraud Investigation Office (SFIO), has left a crucial question of law open i.e., whether SFIO are police officer(s) under the Code of Criminal Procedure, 1973. Serious Fraud Investigation Office (SFIO) It is a corporate fraud investigating agency set up by the Government of India. The SFIO was established on 21st July, 2015, and operates under the Ministry of Corporate Affairs. Section 211 of the Companies Act, 2013, accorded a statutory status to the SFIO. Objective: The core objective of the SFIO is to be an investigative and law enforcement agency…
30 January, 2024
Regulatory authorities
Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). At present, the Central Government sets MSP for 23 crops. These include: 7 cereals (bajra, wheat, maize, paddy barley, ragi and jowar); 5 pulses (tur, chana, masur, urad and moong); 7 oilseeds (safflower, mustard, niger seed, soyabean, groundnut,…
29 January, 2024
Agriculture
India cut its windfall tax on petroleum crude to 1,700 rupees ($20.53) a tonne from 2,300 rupees a tonne, according to a recent government notification. Windfall Tax It is a tax levied by governments against certain industries when economic conditions allow those industries to experience significantly above-average profits. The term “windfall” refers to an unexpected rise in profits, and the tax on windfall gains is known as the windfall tax. When is it imposed? When the government notices a sudden increase in an industry's revenue, they impose this tax. However, these revenues cannot be linked to anything the company actively pursues, such as its business strategy or expansion. Rather,…
22 January, 2024
Tax
Standing at just around 70-90 cm tall and weighing less than 200 kg, it is among the world’s most dwarf cattle breeds. It is native to Punganur village in the Chittoor district of Andhra Pradesh. It has high resilience to drought and can adapt to low-quality feed. It is also prized for its milk, which boasts a higher fat content, making it ideal for producing ghee. A Punganur cow can give around 1 to 3 litres a day, and the milk fat content is 8 percent as compared to 3 to 4 percent in other native breeds. The milk is also rich in nutrients such as Omega fatty acids, calcium, potassium, and magnesium. Body…
20 January, 2024
Animal Husbandry
Cabinet approves “PM-eBus Sewa” for augmenting city bus operations; priority to cities having no organized bus service 10,000 e-Buses to be deployed on PPP model in 169 cities; Infrastructure to be upgraded in 181 cities under Green Urban Mobility Initiatives Total estimated cost of the scheme to be Rs.57,613 crore Expected direct employment generation over 45,000 PM-eBus Sewa Scheme Under the PM-eBus Sewa Scheme, 10,000 e-buses will be deployed across cities in the country. The scheme was introduced to give a push to the slow adoption of e-buses in public transport. Support for Operation: Under this scheme, city bus operations will be done on…
19 January, 2024
welfare
In a recent group discussion held by Life Skills Collaborative, most of the rural youth preferred to stay in their village which necessitates the importance of upskilling them. Why is upskilling necessary for the rural youth? UN projects that almost 50% of the Indian population will be living in urban areas by 2047. To overcome agrarian crisis – Farming is the main source of rural livelihoods including children who work on family-owned farms. But the rural economy is experiencing a major occupational shift with more farmers quitting agriculture to join non-farming jobs, hinting at an agrarian crisis. The National Sample Survey…
16 January, 2024
Employment
Swayam Siddha is a financial product from the State Bank of India (SBI) that provides loans to women entrepreneurs from Self Help Groups (SHGs). The loans can be up to 5 lakh rupees.
29 January, 2024
Banking
Zero Defect Zero Effect (ZED) is a certification scheme for Micro, Small, and Medium Enterprises (MSMEs). The scheme's goal is to improve the competitiveness and sustainability of MSMEs, and to help them become national and international champions. The ZED scheme has 3 levels of certification - Bronze, Silver, and Gold. The certification is based on parameters such as quality, safety, production, cleanliness, energy, and the environment.
29 January, 2024
MSME
A recent report of CBRE-CREDAI says that Maharastra, TamilNadu and Uttar Pradesh (top 3 States) contribute 40% of registered MSMEs in India. Micro, Small and Medium Enterprises are known by the acronym MSME.
27 January, 2024
MSME
An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities. Examples of investment banker employers - Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan Chase (JPM), Bank of America Merrill Lynch (BAC), and Deutsche Bank (DB).
20 January, 2024
Banking
Released by- International Labour Organisation Publication- Annually Theme- The value of essential work. About- It details the impact of economic slowdown on the global labour market. 2023 report- It calls for a revaluation of the work of key workers to reflect their social contribution and greater investment in key sectors. Key workers- Food system workers, health workers, retail workers, security workers, manual workers, cleaning and sanitation workers, transport workers, and technicians and clerical workers. Key highlights Aspects Trend Global unemployment rate 5.1%, a modest improvement on 2022 Global labour force participation rate It is expected to decline further in 2023, reaching 60.5% the…
15 January, 2024
Employment
Recently, the 1st Advance Estimates (FAEs) released by the government showed that India’s GDP will grow by 7.3% in the current financial year (2023-24), slightly faster than the 7.2% growth in 2022-23. What is GDP? Gross Domestic Product – GDP is defined as total market value of all final goods and services in an economy. It is used to assess the size of economy and the country’s performance can be measured across years. Growth of GDP can be either due to increase in actual production or due to increase in prices of goods and services or combination of both. Nominal GDP – It is the…
15 January, 2024
GDP/GNP
It is the apex executive body for the formulation and administration of rules, regulations and laws relating to MSMEs in India.MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy, fostering entrepreneurship and self-employment opportunities at comparatively lower capital cost, next only to agriculture. Union minister- Shri Narayan Rane Key Initiatives/ Schemes Micro Small and Medium Enterprise Development Act (MSMED Act) 2006 Aim- To facilitate the promotion and development and enhance the competitiveness of MSMEs. MSME definition- A revision was announced in Atmanirbhar Bharat package in 2020. Classification Investment in Plant and Machinery or Equipment Annual turnover Micro…
14 January, 2024
Government policies and interventions
The Ministry was carved from the Ministry of Agriculture and Farmer’s Welfare in 2019. Departments Department of Fisheries Department of Animal Husbandry and Dairying Department of Fisheries Fisheries sector plays an important role in the Indian economy as it contributes to the national income, exports, food and nutritional security as well as employment generation. It is recognized as the ‘Sunrise Sector’ and is instrumental in sustaining livelihoods of around 30 million people in India particularly that of the marginalized and vulnerable communities. Key Initiatives/Schemes Institutes The Department is responsible for the development of inland , marine and coastal fisheries and fishery institutes.…
13 January, 2024
Fisheri
Harit Nauka guidelines and the River Cruise Tourism Roadmap 2047 were launched at the recently held inaugural Inland Waterways Development Council (IWDC) in Kolkata. IWDC – It is hosted by the Inland Waterways Authority of India. Establishment in – 2023 Objectives – For comprehensive development of inland waterways and associated ecosystems with improved cargo efficiency, passenger movement, and river cruise tourism, with active participation from the States and UT’s. Harit Nauka Harit Nauka – It is the ‘Guidelines for Green Transition of Inland Vessels’. Launched by – Ministry of Ports, Shipping, and Waterways. Aim – To embark on a journey towards a sustainable and eco-friendly future for our inland waterways. River…
12 January, 2024
Growth, Development and Employment
GI tag - A GI tag is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. Ownership - Any trader's body, association, or organization can apply for a GI tag. Major Categories - The products in the GI registry fall under five major categories. Agriculture Food Stuff Handicrafts Manufactured Natural Highest - Handicrafts dominate the list, with over half the GI tags being given to products crafted by skilled artisans. Categories (Highest to Lowest) No. of Products Handicrafts 285 Agriculture 196 Foodstuff 38 Manufactured 15 Natural 2 States (Highest to Lowest) Number…
12 January, 2024
GI Tag
SVAMITVA Scheme wins Best Innovation Award for Innovation Sandbox presentation during Public Policy Dialogues–2024 at Indian School of Business, Hyderabad. Initiative by - It is a collaborative effort of the Ministry of Panchayati Raj, State Panchayati Raj Departments, State Revenue Departments and Survey of India. Launch - It is a Central Sector Scheme, launched in the year 2021. Aim - It is a scheme for mapping the land parcels in rural inhabited areas using drone technology and Continuously Operating Reference Station (CORS). To provide an integrated property validation solution for rural India. SVAMITVA Property Cards - They facilitate monetization of properties, enabling bank loans…
11 January, 2024
Government policies and interventions
The New York Times (NYT) filed a lawsuit against OpenAI and Microsoft for using its copyrighted work to train and generate Artificial Intelligence products. Why NYT filed allegation against AI firms? Use of copyrighted materials- NYT claims that Open AI and Microsoft are free-riding on its journalism, stealing its audience. It argues that Open AI and Microsoft’s use is not transformative or fair, and that it harms the potential market for its work. They use NYT’s copies to train their large language models (LLMs), including ChatGPT and Copilot. Loss of revenue- AI firms are reproducing articles by passing paywalls using a browsing plugin.…
10 January, 2024
Economy Offence
A new report by the Lancet Countdown on Health and Climate Change warns of the severe health consequences of climate change in India. Lancet Countdown Report The Lancet Countdown is global research collaboration that tracks the relationship between public health and climate change. 2023 report- It tracks the relationship between health and climate change across 5 key domains and 47 indicators. It warns that from 2018 to 2022, average summer temperature increased by 0.5°C compared to the 1986-2005 baseline average, with severe implications for public health. The report highlights the grave and mounting threat to health of further delayed action on…
10 January, 2024
Data and statistics
NHPC Limited and Gujarat govt sign MoU for Rs.4,000 crore in the proposed 750 MW Kuppa Pumped Hydro Storage Project in Chhota Udaipur, Gujarat. It aims to utilize pumped hydro storage projects for energy storage and addressing. It is a part of “Vibrant Gujarat” initiative.
13 January, 2024
Energy
Recently National Highways Authority of India (NHAI) signed a 3-year MoU with the National Remote Sensing Centre (NRSC) to develop & report a Green Cover Index for National highways. MGCI is a metric that measures the amount of green vegetation in mountain areas (forest, shrubs, trees, pasture land, crop land, etc.) in order to monitor progress towards the mountain target.
10 January, 2024
Roads
The South Coast Railway (SCoR) Zone is India's 18th railway zone, and its headquarters are in Visakhapatnam, Andhra Pradesh. It was announced in 2019 and still not started yet.
08 January, 2024
Railways
RGIA in Hyderabad was ranked 2nd among the top 20 global airports with the highest On-Time Performance (OTP), according to Cirium’s annual report released recently. On-time performance (OTP) is a measure of how punctual an airline's flights are compared to their scheduled times. A flight is considered on-time if it arrives or departs within 15 minutes of its scheduled time.
05 January, 2024
Airports
A savings or current account is treated as inoperative, if there are no ‘customer induced transactions’ in the account for a period of over 2 years. A customer induced transaction can be a financial transaction initiated by or done at the Behest of the account holder by the bank or third party, or A non-financial transaction, or A KYC (know your customer) updation done in face-to-face physical mode or through digital channels such as internet banking or mobile banking application of the bank.
05 January, 2024
RBI
The Performance of Indian Railways in 2023 showed significant strides in infrastructure but reveals underwhelming freight loading and financial performance. How Indian Railways performed in 2023? Near completion of DFC – Dedicated Freight Corridors are nearing completion with more than 200 freight trains already running on the corridors. Dedicated Freight Corridor (DFC) It is one of the largest rail projects to date in India. Aim – To provide a seamless freight transportation between eastern, northern and western India. Executed by – Indian Railways Implemented by – Dedicated Freight Corridor Corporation of India Limited (DFCCIL), a subsidiary of the Indian Railways. Arms Eastern Dedicated Freight Corridor (EDFC) Western…
07 January, 2024
Railways
Recently, India released a document titled ‘Re-examining Narratives: A Collection of Essays’ to present alternate perspectives on economic policy that have long-term implications for India’s growth and development priorities. What are credit rating agencies? Credit Rating Agencies (CRA) – According to IMF, they are private companies that assess credit risk of borrowers that seeks loans and issue fixed-income securities, such as bonds. Beneficiary – Individuals, corporation, State or provincial authority, or sovereign government. Prospective borrowers often must obtain a credit rating before they try to raise money in capital markets. Lending parameters – Ratings contributes to the determination of the interest rate, or price, the borrower…
06 January, 2024
Banking
Cumulative Roof Top Solar (RTS) in India has crossed 10 GW and Gujarat has emerged as the leader in the segment with a contribution of 30% to the total capacity. Gujarat’s share was 3.2 GW, followed by Maharashtra at 1.9 GW and Rajasthan at 1.1 GW capacity. According to Union Ministry of New and Renewable Energy (MNRE) the Compound annual growth rate (CAGR) of RTS installations during Mar, 2019 to Nov, 2023 is about 46%.
31 December, 2023
Energy
The Golden Quadrilateral (GQ) is a highway network that connects India's 4 largest cities - Delhi(north), Mumbai(west), Kolkata(east), and Chennai (south). It is India's longest highway project and the 5th longest in the world that also passes through 13 states. It is managed by the National Highways Authority of India (NHAI) under the Ministry of Road, Transport and Highways. It is intended to establish faster transport networks between major cities and ports.
31 December, 2023
Roads
A Financial Intelligence Unit (FIU)- India is a national body that collects and analyzes information about suspicious financial activity. The FIU-IND is an independent body in New Delhi that reports directly to the Economic Intelligence Council (EIC), which is headed by the Finance Minister. The FIU-IND cooperates with other law enforcement agencies both domestically and internationally.
30 December, 2023
Financial inclusion
The NLC Talabira Thermal Power Project is a 2,400 MW coal-based thermal power plant in Odisha. The project is a Non-National Infrastructure Pipeline (NIP) Central PSU Electricity Generation project. It will be an ultra-super critical thermal plant. The 2,400 MW is to be shared by Tamil Nadu 1,500 MW, Puducherry 100 MW, Karnataka 400 MW and Odisha 400 MW.
28 December, 2023
Growth, Development and Employment
The Udhampur-Srinagar-Baramulla Rail Link (USBRL) is a 272-kilometer railway track that will connect the Kashmir Valley with the rest of India. The project was declared a "National Project" in 2002 due to its importance in providing seamless connectivity to Kashmir. Chenab Rail Bridge, world’s highest railway bridge, over the Chenab river in Reasi district, Jammu & Kashmir is also a part of this project.
27 December, 2023
Railways
According to the report of WIPI, 2023 global patent applications has been increased. In 2022, applicants based in China filed around 1.58 million patent applications, followed by the US, Japan, the Republic of Korea, and Germany. The WIPI report also includes India as a star performer and secured the 40th position out of 132 countries.
27 December, 2023
Economic Data
RBI’s move to consolidate the scattered laws on connected lending is welcome. CL refers to persons who are in the position to control the decision of the lender. CL is the extension of credit to individuals or firms connected through ownership or the ability to exert control, whether direct or indirect. CL refers to cases where the director of a bank borrows from the same bank and can have some influence. Examples of connected parties include a firm’s parent, major shareholders, subsidiaries, affiliated companies, directors, and executive officers. Firms are also connected where they are controlled by the same family…
31 December, 2023
RBI
Checkout portals of many e-commerce websites, mobile applications and even banks now offer an option of paying later. BNPL is a short-term credit facility extended by banks directly or retailers (through their tie-ups with banks and NBFCs), that allow consumers to defer payment on their purchases for 15 to 365 days. Depending on the service provider, the interest-free period may vary from 15-30 days, beyond which the customer can repay in a single shot or in EMIs spread over 1-12 months. EMI stands for equated monthly instalment, which relates to payments made regularly to repay an outstanding loan within a…
31 December, 2023
eCommerce
The Securities and Exchange Board of India (SEBI) has proposed the introduction of a T+0 facility for clearing and settlement of funds and securities. T+0 settlement cycle facilitates for clearing and settlement of funds and securities on T+o (same day) and instant settlement cycle on an optional basis. The facility will be in addition to the existing T+1 (trade plus one day) settlement cycle in the secondary markets for the equity cash segment. SEBI has shortened the settlement cycle to T+3 from T+5 in 2002 and subsequently to T+2 in 2003. Phases - SEBI proposed to implement the system in two…
29 December, 2023
SEBI
About the Ministry Union Minister- Shri Piyush Goyal It is responsible for administering two departments namely Department of Commerce Department of Industry and Internal Trade Autonomous Bodies- The Marine Products Export Development Authority Agricultural and Processed Food Products Export Development Authority Export Inspection Council Indian Institute of Foreign Trade Indian Institute of Packaging Commodity Boards Commodity Boards under Ministry of Commerce Headquarters Coffee Board Bangalore Rubber Board Kottayam, Kerala Tea Board Kolkata, West Bengal Tobacco Board Guntur, Andhra Pradesh Spices Board Cochin, Kerala The Marine Products Export Development Authority (MPEDA)- Statutory body- Under MPEDA Act 1972. Role- It is entrusted with…
28 December, 2023
India's Trade Policy
It is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). It was implemented in 2015-16. Implementation by: National Skill Development Corporation (NSDC). Objective: To enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. Components: Short Term Training: This training aims to provide skills for school/college dropouts or unemployed persons. Apart from providing training, the Training Centres will also impart skills training in Soft Skills, Entrepreneurship, Financial and Digital Literacy Recognition of Prior Learning: Under this, Individuals with prior learning experience or skills will get assessed and certified.…
27 December, 2023
Inclusive Growth
According to the report of WIPI, 2023 global patent applications has been increased. In 2022, applicants based in China filed around 1.58 million patent applications, followed by the US, Japan, the Republic of Korea, and Germany. The WIPI report also includes India as a star performer and secured the 40th position out of 132 countries.
25 December, 2023
Data and statistics
Tamil Nadu ranks 4th in attracting FDI in the period between Oct 2019 and September 2023, after Maharashtra, Karnataka and Gujarat. The total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings and other capital. A foreign direct investment (FDI) refers to purchase of an asset in another country, such that it gives direct control to the purchaser over the asset.
24 December, 2023
Foreign investment
It is a top-up program that uses experiential learning to develop employability skills amongst underserved female students pursuing higher education. Introduced by - All India Council for Technical Education (AICTE). This program will be delivered in a blended mode - a) instructor led face to face workshops/ classrooms and project work, and b) self-paced online learning modules.
12 December, 2023
Growth, Development and Employment
The latest Migration and Development Brief reveals a continuing growth in remittance flows to low- and middle-income countries (LMICs) in 2023, albeit at a slower pace compared to previous years. The brief is a biannual report. Prepared by – The Migration and Remittances Unit, Development Economics (DEC). Released by – World Bank. Objectives – To provide the information about migration and remittance flows and related policies over the past 6 months and to provide medium-term projections of remittance flows to developing countries. Key findings of the report Remittances – It grew by an estimated 3.8% in 2023, reaching a total of USD669 billion in LMICs. A 7.2% increase in…
25 December, 2023
Economic Data
The 5th edition of the LEADS annual exercise provides insights into improvement of logistics performance at State/UT level. Basis – Logistics Performance Index (LPI) of World Bank. Unlike LPI that relies entirely on perception-based surveys, LEADS incorporates both perception and objective data. Launched in – in 2018 Objectives – To assess the performance of logistics eco-system across States and Union Territories (UTs) and to promote competitive federalism for development of logistics sector. Data source - A pan-India primary survey conducted across 36 States/UTs. 3 pillars of logistics performance - Quality of Logistics Infrastructure, Quality of Logistics Services, and Operating & Regulatory Environment. Key findings of LEADS (2023) A positive shift in perception is spread across…
22 December, 2023
Economic Data
Tax Inspectors without Borders (TIWB) programme launched in partnership with India. TIWB is a capacity-building programme, helping countries in building tax audit capacity. TIWB is a joint initiative of the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP). TIWB Programmes complement the efforts of the international community to strengthen co-operation on tax matters and contribute to the domestic resource mobilisation efforts of developing countries. It deploys qualified experts in developing countries and help build tax capacity in the areas of audit, criminal tax investigations and the effective use of automatically exchanged information. TIWB launched a programme in…
21 December, 2023
Tax
“A Bond is a fixed income instrument that represents a loan made by an investor to a borrower.” In simpler words, bond acts as a contract between the investor and the borrower. Mostly companies and government issue bonds and investors buy those bonds as a savings and security option. These bonds have a maturity date and when once that is attained, the issuing company needs to pay back the amount to the investor along with a part of the profit. This kind of dealing with bonds between the issuer and the investor is done by brokers. What are Government Bonds?…
19 December, 2023
Capital Markets
According to the 5th edition of Global Status Report on Road Safety, road fatalities dropped globally, but India sees a rise. Launch year – 2009 Released by – World Health Organisation (WHO) Objectives – To describe the road safety situation in United Nations (UN) Member States and assess the changes with a particular focus on the evolution of the burden and responses since 2010. Data source – Based on survey and review of legislation in which 170 UN Member States and 2 territories participated. 2023 Report– It provides the first complete overview of progress made during 2011–2020 and sets a baseline for the Decade of Action for Road Safety 2021–2030. Key Findings…
18 December, 2023
Economic Data
The Food and Agriculture Organisation (FAO) of the United Nations launched the Regional Overview of Food Security and Nutrition 2023: Statistics and Trends report. The FAO report is a glimpse on the progress in meeting Sustainable Development Goals and World Health Assembly (WHA) global nutrition targets. Findings 74.1% of Indians (2020 – 76.2%) were unable to afford a healthy diet in 2021, Pakistan (82.2%), and in Bangladesh (66.1%) of the population faced difficulties in finding healthy food. Rising food costs, if not matched by rising income, will lead to more people unable to afford a healthy diet, the report warned.…
17 December, 2023
Economic Data
India’s future growth strategy needs to be calibrated in view of the changing global conditions. India’s growth projections India’s growth in 2023-24 is currently projected by the Reserve Bank of India at 7%. International Monetary Fund (IMF) and the World Bank have pegged it at 6.3%. India is likely to realise the RBI’s currently projected growth of 7% in this fiscal year. In the medium term, the IMF has projected an annual growth of 6.3% up to 2028-29 What are the challenges that India faces? Deglobalisation- There is a trend of reducing global integration and increasing protectionism among countries due to…
13 December, 2023
Growth, Development and Employment
The Monetary Policy Committee (MPC) of the RBI unanimously decided to keep the repo rate unchanged at 6.5%. The standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility (MSF) rate and the bank rate at 6.75%.
09 December, 2023
Monetary Policy
The Reserve Bank of India (RBI) recently enhanced the UPI payment limits for healthcare and education from Rs.1 lakh to Rs.5 lakh. The limit on recurring e-payment mandates for credit card and insurance premia payments as well as mutual fund investments to Rs.1 lakh from the current limit of Rs.15,000.
09 December, 2023
RBI
According to recent ‘State of Food and Agriculture’ (SOFA) report, our current agrifood systems impose huge hidden costs on our health, the environment and society, equivalent to at least $10 trillion a year. Released by – Food and Agriculture Organization of the UN (FAO) covering 154 countries. It is a comprehensive annual overview of food security which had been published since 1947. FAO’s 3 mandate are to raise the levels of nutrition & the standards of living of people, to improve the production & distribution of all food and agricultural products and to improve the condition of the rural population. Findings of State of Food…
05 December, 2023
Agriculture
In 5th edition of State Food Safety Index, nearly all major states slip on food safety compared to 2019. It is a dynamic quantitative and qualitative benchmarking model that provides an objective framework for evaluating food safety. It is annual index released by FSSAI on the occasion of World Food Safety Day (7th June) since 2019 It is based on the information submitted by States/UTs. Aim – To measure the performance of states on parameters of food safety. Parameters – Originally it had 5 but 6th one was added in 5th report for the period 2022-23. FSSAI Parameters Weightage Measures Compliance 28% Activities of State food safety authority Consumer Empowerment 19%…
05 December, 2023
Food security
The India Infrastructure Report 2023 on Urban Planning and Development was released in December 2023 IIR – It is an annual publication initiated by the IDFC Foundation in 2001. Published by – IDFC Foundation, Infrastructure Development Corporation (Karnataka) Ltd. (iDeCK) and the National Institute of Urban Affairs (NIUA). IDFC Foundation is a not-for-profit institution, working on philanthropic initiatives in social infrastructure. IDeCK, established in 2000 as a joint venture of the Government of Karnataka, IDFC Foundation and HDFC. Objectives – To identify and analyze holistic aspects related to infrastructure development and to provide resource for formulating urban policy. India Infrastructure Report 2023 It contains 25 chapters in…
04 December, 2023
Infrastructure
It is the process by which a country decides to use two currencies the local currency and generally a stronger, more established currency like the US dollar. Javier Milei, the recent winner of Argentina’s presidential election, has drawn attention for his plan to replace the country’s currency “Peso” with the dollar. Occurrence- It occurs in developing countries with a weak central monetary authority or an unstable economic environment. It usually happens when a country’s currency becomes unstable or loses its value due to high inflation or other economic problems. Example- Zimbabwe ran a dollarization test to see if the adoption of foreign currency could reduce high inflation and stabilize…
02 December, 2023
Monetary Policy
India and Indonesia were the top 2 beneficiaries of the European Union’s Generalised System of Preferences (GSP) schemes for exports in 2022. In 2023, however, the situation is expected to change significantly as some of the largest recipients of GSP benefits, including several sectors from India, graduated out of the scheme. Under the GSP scheme, the EU allows identified products originating in certain developing countries preferential access to its markets in the form of reduced or zero rates of customs duties. As the items become more competitive and reach a particular threshold, the GSP is withdrawn.
30 November, 2023
Import / Export
CREAMS is a laboratory that monitors crop conditions in extreme weather, established in 2013 by the Indian Agricultural Research Institute (IARI), New Delhi. CREAMS provides data on the number of Active Fire Events (AFE) caused by burning paddy crop residue. CREAMS also provides data on stubble-burning incidents in northern India. In 2023, the number of stubble-burning incidents in Delhi, Punjab, Haryana, and NCR areas of Rajasthan and Uttar Pradesh decreased from 13,964 in 2022 to 6,391.
25 November, 2023
Agriculture
Ministry of Rural Development and the Ministry of Agriculture and Farmers’ Welfare jointly launched training of Krishi Sakhis for promotion of Natural Farming. Krishi Sakhis are Community Agriculture Care Service Providers (CASPs). They are trained para extension professionals and practicing farmers at the grass root level. The Krishi Sakhis initiative was launched under the Deendayal Antyodaya Yojana - National Rural Livelihoods.
25 November, 2023
Agriculture
It is one of the highest National Awards in the field of livestock and dairy sector to be conferred as a part of National Milk Day celebration 2023. Aim - To motivate farmers to rear indigenous breeds, increase their population, and improve their production and productivity. National Milk Day is celebrated every year on November 26 to honor the birth anniversary of Dr. Verghese Kurien (Father of White Revolution).
25 November, 2023
Animal Husbandry
Union Minister for Ports, Shipping and Waterways (MoPSW) visits Galathea Bay and reviews progress of proposed International Container Transhipment Port (ICTP) recently. Galathea Bay Galathea Bay is located on Great Nicobar Island in the Andaman and Nicobar Islands. Galathea Bay is also the name of a National Park that was established in 1992. It is part of the Great Nicobar Biosphere Reserve.
24 November, 2023
Ports
India’s 1st urban ropeway project in Shimla will begin in September 2024 and is expected to be completed by 2029. It is the world’s second longest, after La Paz in Bolivia.
23 November, 2023
Growth, Development and Employment
India has overtaken China to become the largest contributor of inland capture water fisheries, thereby emerging as one of the top 3 fish-producing countries in the world. Inland fish production has doubled over the past 9 years to 131 lakh tonnes. In 2021-22, India's annual fish production reached an all-time record of 162.48 lakh tons. Some of India's inland capture fisheries resources include - Godavari, Krishna, Cauvery, Bhima, West Coast Narmada, Tapti, Mahi.
21 November, 2023
Fisheri
Union ministry of ports, shipping and waterways reinstated the Vadhavan Port project in Maharashtra, after it had been stuck over environmental concerns for over 2 years. It is India's 13th major port, developed as a joint venture by the Jawaharlal Nehru Port Authority (JNPA) and the Maharashtra Maritime Board (MMB). It is a Public-private partnership (PPP) project (JNPA - 74% stakes and MMB - 26% stakes).
20 November, 2023
Ports
White goods are large home appliances and electrical goods for the house which were traditionally available only in white. Example - Stoves, Refrigerators, Freezers, Washing machines, Tumble driers, Dishwashers, Air conditioners, LED lights, Water heaters, Microwave ovens, Induction cookers. It also refer to white fabrics, especially linen or cotton that are historically used to be made of white cloth. In the beverage industry, white goods are colorless spirits, such as vodka or gin.
10 November, 2023
Others
NTPC Renewable Energy Limited (NTPC REL), a wholly owned subsidiary of NTPC, has declared the commercial operation of its first project, the 50 MW wind project at Dayapar in Kachch, Gujarat. Dayapar Wind is the first capacity in India to be declared commercial under new Indian Electricity Grid Code and General Network Access Regime.
07 November, 2023
Infrastructure
Digital India- In 2015, it was launched to improve online infrastructure and increase internet accessibility among citizens. Unified Payment Interface-It is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing & merchant payments into one hood. Bhasini- It is an AI powered language translation platform which will support digital inclusion in India's diverse languages. Udyam portal- It provides registration of MSMEs at zero cost, the process is fully paperless, online and based on self-declaration. PM-WANI- PM-Wi-Fi Access Network Interface was launched by the Department of Telecommunication (DoT) in 2020 to…
07 November, 2023
Growth, Development and Employment
Status of MSME in India Micro Small and Medium Enterprises (MSMEs) serve as the ‘backbone of Indian economy’ and the ‘growth engines of the country’. Classification- MSMEs are classified based on the investment in plant & machinery/equipment and annual turnover. It includes both manufacturing service rendering enterprises. Classification Micro Small Medium Investment in plant & machinery Not more than Rs.1 crore Not more than Rs.10 crore Not more than Rs.50 crore Annual turnover Not more than Rs. 5 crore Not more than Rs. 50 crore Not more than Rs. 250 crore Significance Contributes ~ 30% to India’s GDP Employs ~…
07 November, 2023
MSME
Hurun India and EdelGive released the EdelGive Hurun India Philanthropy List 2023. Shiv Nadar, founder of HCL Technologies, has retained the top spot as the leading Indian philanthropist. The list includes philanthropists who donated more than Rs 5 crore in the financial year 2023.
06 November, 2023
welfare
More than 97% of the Rs. 2,000 bank notes have returned on the deadline (October 31, 2023) of circulation withdrawn of Rs. 2,000 bank notes by RBI. However, the window for deposit and/or exchange the Rs. 2,000 banknotes continues to be available at the 19 Issue Offices of RBI. The RBI reiterated that Rs. 2000 bank notes continue to be legal tender.
06 November, 2023
RBI
Executive Director of the Rubber Board has launched the 4th edition of the Virtual Trade Fair (VTF) recently. The Rubber Board is a statutory body constituted by the Government of India, under the Rubber Act 1947, for the overall development of the rubber industry in the country. The Rubber Board is under the administrative control of the Ministry of Commerce and Industry. Head Office - Kottayam, Kerala.
03 November, 2023
Agriculture
According to the recent quarterly bulletin of Periodic Labour Force Survey, unemployment rate in urban areas has come down. PLFS – It is published by National Sample Survey Office (NSSO) since 2017. Objective – To estimate the key employment and unemployment indicators (Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate). Periodic Labour Force Survey (PLFS) Quarterly Bulletin Annual Report Launch Year 2018 2017 Latest Report For July- Sep, 2023 For 2022-2023 Total Reports 20 6 Measurement Only current weekly status (CWS) Both current weekly status (cws) and usual status (us) Coverage Urban areas Rural and Urban areas Current Weekly Status…
30 November, 2023
Economic Data
India has the opportunity to create national champions in the capital goods sector. Picture of Capital Goods Sector in India Capital Goods - It is a category of stocks related to the manufacture or distribution of goods. It includes companies that produce machinery, electrical equipment, aerospace and defence, engineering, and construction projects. Status - The current value is at US 70 billion dollars, contributing about 2% to the country’s GDP. It is likely to cross US 100 billion dollars by 2025, in line with the growth of the Indian manufacturing sector. It contributes 12% to the overall manufacturing in India. It employs 1.4 million people. What are the challenges…
29 November, 2023
Capital Market
Amplifi 2.0 portal was launched to facilitate the process of achieving sustainable development by making data available on the crucial issues pertaining to development. Amplifi – Assessment and Monitoring Platform for Liveable, Inclusive and Future-ready urban India It is a platform to provide raw data across 14 sectors for 440+ parameters for 250+ cities. Launched by –Ministry of Housing and Urban Affairs. Aim – To enable research, analysis, and evidence-based policymaking for government, citizens, academia and industry. Coverage – Currently, 225 urban local bodies (ULB) have been on-boarded, and data for 150 cities is available on the portal. Target – To cover data from more than 4,000 ULB. Data collection – Through…
28 November, 2023
Data and statistics
What is the need for fiscal prudence? Stable fiscal policy- It helps to maintain fiscal sustainability and macroeconomic stability as well as promotes economic growth and social welfare. Safety net- It can help avoid fiscal crises, reduce public debt and improve the quality of public spending. Effective resource mobilization- The government should not spend more than it earns, and should use its resources efficiently and effectively to promote the economic and social well-being of its citizens. Future recovery plan- The government should also plan for the future and be prepared for any shocks or uncertainties that may affect its fiscal…
27 November, 2023
Fiscal Policy
The Basic Animal Husbandry Statistics 2023 was released during National Milk Day in 2023. It is a survey of milk, egg, meat and wool production in India based on Animal Integrated Sample Survey (ISS) conducted between March 2022-February 2023. The survey is conducted in 3 seasons - summer (March-June), monsoon (July-October) and winter (November-February). Key finding - Production of milk, egg and meat has significantly gone up in 2022-23 over the past five years, although wool output in the same period has witnessed a negative growth. India celebrates National Milk Day on November 26th, to commemorate the efforts of Dr Verghese Kurien, the father…
27 November, 2023
Animal Husbandry
Recently launched Investor Risk Reduction Access (IRRA) platform acts as a ‘safety net’ for investors registered with SEBI. Need – There is rise in instances of glitches in trading members’ systems making the investors with open positions at risk. Launched by – SEBI (Securities and Exchange Board of India) Developed by – It has been jointly developed by all the stock exchanges of India BSE (Bombay Stock Exchange) NSE (National Stock Exchange) NCDEX (National Commodity and Derivatives Exchange Limited) MCX (Multi Commodity Exchange of India Ltd) MSE (Metropolitan Stock Exchange of India) Objectives To reduce risks faced by investors during technical glitches at both the…
25 November, 2023
Investment
India has launched 2 new initiatives - Global DPI Repository and Social Impact Fund, to advance Digital Public Infrastructure in Global South. Digital Public Infrastructure (DPI) is a set of shared digital systems to deliver and provide equitable access to public and / or private services to drive development, inclusion, innovation and respect human rights and fundamental freedoms. Global DPI Repository (GDPIR) – A virtual repository of DPI, voluntarily shared by G20 members and beyond. Developed by – Ministry of Electronics and Information Technology (MeitY) Aim - To bridge the knowledge gap in the choices and methodologies required for the design, construction, deployment, and governance of DPIs. To showcase the information in a standardized…
25 November, 2023
Infrastructure
People prefer physical gold over sovereign gold bonds as no trail is left for the tax authorities. What is Sovereign Gold Bond (SGB)? About A financial instrument introduced by government to reduce gold imports Launch year 2016 Issuer Reserve Bank of India (RBI) on behalf of Government of India Interest 2.5% paid semi-annually Eligible investors Persons residing in India as defined under Foreign Exchange Management Act,1999 Individuals, Hindu Undivided Families (HUFs), Trusts, Universities and Charitable institutions Investment limit Minimum investment- 1 gram Maximum investment Individuals & HUFs - 4 kg Trusts - 20 kg Authorized agencies to sell SGBs Nationalised Banks…
24 November, 2023
Gold investment
Recently, the Union Tourism Ministry has circulated the model law on adventure tourism to all States and Union Territories for feedback. Adventure tourism – A niche tourism where exploration or travel involves some degree of risk. It includes at least 2 among the 3 elements (physical activity, natural environment, and cultural immersion) Types – Hard adventure and soft adventure covering land, air and water based activities. Model law – It is a part of the National Strategy for Adventure Tourism covering aspects of obligations, institutional framework, registration, penalties and insurance coverage. Adventure tourism is considered a sunshine sector for India. National Strategy for Adventure Tourism (2022) Aim – To develop adventure…
24 November, 2023
Tourism
Reserve Bank of India (RBI) has increased the risk weight of commercial banks and non-banking financial companies’ (NBFC) unsecured loans from 100% to 125% as a preventive measure against possible NPAs. Risk Weights – It is the risk associated with every rupee lent by the bank on its capital position. Risk Asset Ratio System – It was introduced by RBI in 1992 for banks including foreign banks as a capital adequacy measure in line with the Capital Adequacy Norms prescribed by Basel Committee Capital Adequacy Ratio, known as Capital to Risk (Weighted) Assets Ratio (CRAR) is the proportion of a bank’s capital to its…
22 November, 2023
RBI
International Monetary Fund (IMF) executive board approves 50% quota increase to strengthen resources following the guidance from the International Monetary and Financial Committee (IMFC) at the 2023 annual meetings. Quotas are the building blocks of the IMF’s financial and governance structure which are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account. Reflection – An individual member country’s quota broadly reflects its relative position in the world economy. Usage of IMF Quotas Currently, India has a quota of special drawing rights (SDR) 13,114.4 million which denotes a share of 2.75%, making it the 8th largest quota-holding country in the IMF. Based on the…
15 November, 2023
Monetary Policy
An investigation titled ‘Cyprus Confidential’ has shed light on the intricate web of tax avoidance and wealth concealment. What is Cyprus Confidential? It is a global offshore investigation of 3.6 million documents that reveal how the rich and powerful from around the world use Cyprus as a tax haven and a secrecy jurisdiction. Partnership- International Consortium of Investigative Journalists and 68 media partners. Cyprus- It is a small Mediterranean island off the coast of Turkey that has an outsized financial sector.It has some of the European Union’s most lax financial disclosure laws, making the country an ideal destination for stashing wealth. Cyprus Investment Programme-…
13 November, 2023
Tax
According to a new study, active equity funds witnessed higher net inflows than passive equity funds in the Q2 of FY24. Equity fund – It is a mutual fund that invests principally in stocks and thus called as stock funds which generally carry a high risk for long-term investments but can yield substantial returns over time. These are categorized into small, mid, and large-cap based on the size of the company. A mutual fund collects money from investors and invests the money, on their behalf, in securities (debt, equity or both). Active Equity Funds Passive Equity Funds Fund Manager’s Role in stock selection Active Passive Expense ratios Higher Lower…
10 November, 2023
Others
Recently Infosys founder N.R. Narayana Murthy sparked a debate, urging young Indians to work 70 hours per week. Status of Working Hours in India As per Time Use Survey 2019, urban Indians aged 15-29, work 8.5 hours a day on average, with Uttarakhand ranking first at 9.6 hours a day. Rural Indians work 7.2 hours a day on average. Factories Act 1948- Every adult (a person who has completed 18 years of age) cannot work for more than 48 hours a week and not more than 9 hours in a day. Any employee who works for more than this period is…
09 November, 2023
Labour
The 1st agri-tourism facility of Andhra Pradesh has been setup at Chintapalli in Alluri Sitharama Raju (ASR) district. Agri-tourism is a niche and an emerging market segment of the tourism industry. The father of agri-tourism in India is Pandurang Taware who pioneered this concept in Maharashtra in 2005. Need - Climate change, tourism led pollution and increasing urbanisation have resulted in rising demand for natural and rural destinations as tourist attractions. Features - It is a non-urban hospitality product, serving an agrarian lifestyle, culture and heritage. Objectives To generate income To promote environmental awareness To strengthen community ties To enhance cultural awareness The agri-tourism market globally…
08 November, 2023
Tourism
Recently, Prime Minister Narendra Modi has announced an extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the free ration scheme for another 5 years. What is PMGKAY? It is the world’s largest food security welfare scheme. Launch year- 2020. Aim- To provide free food grains to the poor and needy through the Public Distribution System (PDS). Eligibility- It will be provided to around 80 crore beneficiaries covered under both categories of National Food Security Act,2013 (NFSA) Antyodaya Anna Yojana (AAY)- 35 kg food grains per household per month Priority Householders (PHH)- 5 kg per person per month It also provides an additional 5 kg…
08 November, 2023
Food security
Recently, 2 passenger trains in Andhra Pradesh’s Vizianagaram district collided which costed lives of many people. It is a cab signalling train control system with anti-collision features and is called as Kavach (armour). Developed by – Indian Railways Research Designs and Standards Organisation (RDSO) which costs Rs. 50 lakh per kilometre. Objective – To enhance safety of running trains by aiding loco pilots to avoid signal passing at danger, over-speeding and during inclement weather such as dense fog. It deploys 3 components along the railway route. RFID technology in tracks – It uses radio waves to automatically identify and read information from a distant wireless device without physical contact or a…
07 November, 2023
Railways
Recently, the Border Roads Organisation (BRO) achieved a breakthrough in a vital tunnel along the 250-km long and strategically important National Highway (NH) 144A in Jammu and Kashmir. Border Roads Organisation (BRO) was formed on 7 May 1960 to secure India’s borders and develop infrastructure in remote areas of the north and north-east states of the country. National Highway, NH-144A is a 2-lane road which starts from Jammu and goes up to Poonch districts. It also provides road connectivity to Akhnoor sub division. The tunnel forms part of NH upgradation project under Prime Minister’s Development Package announced in November 2015 as Reconstruction Plan for Jammu…
07 November, 2023
Infrastructure
The 2nd edition of the World Food India 2023 held at Bharat Mandapam in New Delhi. The 1st edition of the event was held in 2017. Objective – To showcase India as ‘food basket of the world’ and to celebrate 2023 as the International Year of Millets. To provide a platform for different stakeholders to promote investments, partnerships and establishments. Participants - Over 80 countries, including CEOs of prominent food processing companies. Food Street - It will feature regional cuisines and royal culinary heritage of traditional Indian cuisine. Pavilions for food processing industries – It will showcase the innovations and focus on financial empowerment, quality assurance and innovations in…
06 November, 2023
Food security
Economic Survey 2023-24 acknowledged the concept of reverse flipping and this trend has been gaining attention in the recent years. What is reverse flipping? Flipping- The process of transferring the entire ownership of an Indian company to an overseas entity, accompanied by a transfer of intellectual property rights and data owned by the Indian company. It transforms an Indian company into a 100% subsidiary of a foreign entity, with the founders and investors retaining the same ownership via the foreign entity, having swapped all shares. The Foreign Exchange Management (Overseas Investment) Rules and Regulations, 2022 clarify that the flipping culture has been acknowledged by the Reserve…
04 November, 2023
Financial inclusion
Recently, the Reserve Bank of India (RBI) announced that it would directly regulate entities facilitating cross border payment transactions. Payment Aggregators – Entities that enable e-commerce sites and merchants to accept various instruments from customers to complete their payment obligations without the need for the merchants to create their own systems. Payment Aggregator-Cross Border (PA-CB) – Entities that facilitate cross-border online payments for import and export of permissible goods and services. Categories of PA-CB Export-only PA-CB Import-only PA-CB Export and import PA-CB New RBI regulation Authorised Dealer (AD) Category-I banks – They do not require separate approval for PA-CB activity. Existing Non-banks providing…
04 November, 2023
RBI
According to World Bank report, global economy is better placed than in the 1970s, but escalation of the west Asian conflict with disruptions from the Russian invasion of Ukraine could lead to a dual shock. It is a bi-annual report (April & October) published by the World Bank. Objectives – To provide market analysis for major commodity groups like energy, metals, agriculture, precious metals, and fertilizers. It forecasts prices for 46 key commodities, including oil. Commodity markets is a place which involves trading i.e., buying and selling of various commodities and their derivative products. Dual shocks in commodity markets refers to disruption in energy market as well as intensified…
02 November, 2023
Economic Data
The annual publication of Road Accidents in India report was unveiled recently by the Union Ministry of Road transport and Highways. Objectives - It serves as a valuable resource for policymakers, researchers, and stakeholders in the realm of road safety. It also sheds light on emerging trends, challenges, and the Ministry's road safety initiatives. Data Source - Received from state/ UTs police departments in standardized formats as provided under the Asia Pacific Road Accident Data (APRAD) base project of UN Economic and Social Commission for Asia and the Pacific (UN ESCAP). Findings of 2022 report According to the report, road accidents claimed 19 lives in India every…
02 November, 2023
Economic Data
Periodic Labour Force Survey (PLFS) in its 6th report has introduced a crucial focus on weekly hours worked, revealing that the inequality in total earnings might not capture the full picture. Periodic Labour Force Survey (PLFS) Published by –National Sample Survey Office (NSSO) Year of launch- 2017 Indicators Labour Force Participation Rates (LFPR) - Percentage of persons in labour force (i.e. working or seeking or available for work) in the population. Worker Population Ratio (WPR) - Percentage of employed persons in the population Unemployment Rate (UR) - Percentage of persons unemployed among the persons in the labour force Objective- To estimate…
01 November, 2023
Economic Data
Airports discovered more than 63% of this illegal gold. The Department of Revenue Intelligence recently conducted the Golden Dawn Operation across India, seizing 101.7 kg of illegal gold valued at Rs 51 crore. Despite the fact that India receives a legal import of about 800-1,000 tonnes of gold each year, the illicit market is thought to be about 4,000 tonnes larger. How much gold enters India illegally? In FY 2021–22, 833 kg of smuggled gold totalling approximately Rs 500 crore was seized, according to the Directorate of Revenue Intelligence's (DRI) Smuggling in India Report 2021–22. Smuggling from the Gulf region…
28 April, 2023
Economy Offence
Illegal Mining of Ores The Indian Bureau of Mines (IBM) recently raised the alarm about widespread corruption in Odisha's illegal manganese mining and transportation industries. In mines other than those for coal, petroleum & natural gas, atomic minerals, and minor minerals, IBM is a multi-disciplinary government organisation under the Ministry of Mines that promotes conservation, scientific development of mineral resources, and environmental preservation. Highlight Odisha is a mineral-rich State that has 43.64% of manganese, 33.61% of hematite iron ore, and 96.12% of the nation's chrome ore. Mining lease holders in Odisha sent low-grade manganese ore from their mines to brokers…
21 April, 2023
Mine and minerals
Wheat Blast The most significant food crop in the world, wheat, is under threat from a pandemic of blast disease, according to a recent study. Wheat Blast: What is it? In tropical and subtropical areas, wheat productivity is hampered by the fungal disease known as the wheat blast. Magnaporthe oryzae pathotype Triticum (MoT) is the culprit. In 1985, it was discovered in Brazil. Both wild and domesticated grasses are affected by the fungus, most notably rice and wheat. It spreads via spores that can fly great distances in the air, contaminated seeds, and crop leftovers. It subsequently expanded to important…
20 April, 2023
Agriculture
India's Export Potential India's top exporting district is Jamnagar in the state of Gujarat. During FY23 (through January), it accounted for around 24% of India's exports in value terms. Dakshina Kannada in Karnataka, Devbhumi Dwarka, Bharuch, and Kachchh in Gujarat, Mumbai in Maharashtra, Kancheepuram in Tamil Nadu, and Gautam Buddha Nagar in Uttar Pradesh are the other districts in the top 10. Status of the export sector In 2022–23, the merchandise trade imbalance, or the difference between exports and imports, rose by more than 39% to a record USD 266.78 billion, up from USD 191 billion in 2021–2022 period. In…
19 April, 2023
Import / Export
Extend FAME II Subsidy The parliamentary standing committee on heavy industry brought attention to the fact that Phase 2 of the FAME programme to subsidise electric vehicles only met 51.96% of its goal. In related events, the Union Ministry of Heavy Industries' Committee on Estimates (2022-23) for the examination of electric vehicle policy proposed an extension of the FAME II programme. About The Union Ministry of Heavy Industries' Committee on Estimates (2022-23) for the examination of its electric vehicle policy proposed extending the FAME II programme, which was set to expire in 2024. Finance Minister Nirmala Sitharaman doubled the FAME…
06 April, 2023
Energy Reforms
Foreign Trade Policy 2023 The Foreign Trade Policy (FTP) 2023 was recently introduced by the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles. It takes effect on April 1, 2023. About The new strategy, which replaces the previous one that had been in effect since 2015 and takes effect in 2023–2024, intends to virtually triple India's exports of products and services from an anticipated $760 billion in 2022–2024 to $2 trillion by 2030. The Old Policy allowed for a 75% increase in exports, from $435 billion in 2015–16 to $760 billion in 2022–23. India's…
05 April, 2023
Import / Export
Biofuel Export The government changed the rules for exporting biofuel from special economic zones (SEZs) and export-oriented units (EOUs), allowing it to be exported without restriction for both fuel and non-fuel uses as long as the biofuel is made using an imported feedstock. After placing similar limitations on their imports, the Indian government restricted the export of biofuels in 2018. Highlight The notification from August 2018 limited the export of biofuels and mandated licences for both imports and exports. Ethyl alcohol, petroleum oil, oils derived from bituminous materials, bio-diesel, and mixtures are examples of biofuels. The amendment maintains the ban…
04 April, 2023
Energy
Har Payment Digital Mission The Reserve Bank of India (RBI) has started a new initiative called "Har Payment Digital" as part of its aim to get every Indian using digital payments. The campaign, which was started during Digital Payments Awareness Week, aims to increase awareness of how simple and convenient digital payments are while also bringing on new users. Also, the Central Bank has launched a project to adopt 75 villages and provide them with the ability to accept digital payments. Operators of payment systems are supposed to embrace these villages. About & Goals As part of the project, Payment…
16 March, 2023
Digital currency
Hallmark Unique Identification (HUID) Recently, the Union Ministry of Consumer Affairs announced that beginning on April 1, 2023, the sale of gold jewellery will require a Hallmark Unique Identification (HUID). Without a 6-digit alphanumeric Hallmark Unique Identification Number, the Bureau of India Standards (BIS) will not permit the sale of hallmarked gold jewellery or gold artefacts beyond March 31, 2023. (HUID). About The validity of hallmarked jewellery sold to customers under previous agreements shall not be affected. Together with the 6-digit HUID mark, old hallmarked jewellery with 4 marks and no HUID was also allowed to be sold by jewellers.…
16 March, 2023
Gold investment
Indian Tea Industry India has implemented many measures to increase production to develop a specialised brand for Indian tea and guarantee the well-being of the families involved in the tea sector. It is projected that Indian tea exports will reach 95% of the US$ 883 million goals established during 2022–2023 despite several geopolitical, geoeconomic, and logistical challenges. Historical Perspective China was the first country in the world to manufacture tea, and many of the tools used to make tea around the world were developed from traditional Chinese techniques. As a result of British colonial India's need to import tea from…
13 March, 2023
Industry
World Bank Loan to Indian Health Sector The World Bank and the Government of India have agreed on two complimentary loans totaling $1 billion to assist and improve India's healthcare system. Highlight The World Bank is providing two complementary loans totalling $500 million to assist India to upgrade its health infrastructure and get ready for upcoming pandemics. The loan will be utilised to fund India's premier Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), which will enhance the public healthcare infrastructure throughout the nation and was launched in October 2021. India's surveillance system will be prepared to find and report epidemics…
11 March, 2023
Social issues
Foreign Contribution Regulation Act Latest Context The Center for Policy Research's (CPR), Foreign Contribution Regulation Act (FCRA) licence was recently suspended by the Ministry of Home Affairs The Income Tax authorities previously studied and surveyed CPR (not-for-profit group), along with Oxfam India, and the Independent and Public-Spirited Media Foundation (IPSMF). About Foreign Contribution Regulation Act Foreign donations are governed by the "Foreign Contribution (Regulation) Act" (FCRA), which also makes sure they don't compromise domestic security. First passed in 1976, it was revised in 2010 and a plethora of new regulations regarding foreign donations was established. The Ministry of Home Affairs…
10 March, 2023
Investment
National Assessment and Accreditation Council The National Assessment and Accreditation Council has recently come under fire from the office of the Comptroller and Auditor General for errors in its assessment procedures. About NAAC The University Grants Commission (UGC) established the National Assessment and Accreditation Council (NAAC) in 1994 as an independent organisation with its headquarters in Bengaluru. In accordance with the UGC Act 1956, the Department of Higher Education established the University Grants Commission, a statutory agency tasked with coordinating, establishing, and maintaining the standards of higher education in India. Making quality assurance a crucial component of higher education institutions'…
30 March, 2023
Education
Scheme for Trade Infrastructure for Export The Trade Infrastructure for Export Program (TIES), launched by the Department of Commerce, Government of India, aims to provide the necessary infrastructure to support the expansion of exports. What are the main government initiatives to encourage the growth of exports? TIES System: The TIES scheme offers financial assistance to central/state government-owned organisations or their joint ventures for infrastructure projects with substantial export ties. Border Haats, Land Customs Stations, Labs for Quality Testing and Certification, Cold Chains, Trade Promotion Centers, Export Warehousing and Packaging, Special Economic Zones, and Ports/Airports Cargo Terminuses are all part of…
29 March, 2023
Government policies and interventions
Operation Trishul 33 persons involved in various criminal activities who were hiding abroad have been extradited by the Central Bureau of Investigation (CBI) as part of Operation Trishul. About Operation Trishul makes use of the Interpol's Star Global Focal Point Network and its channels to track down financial offenders who distribute stolen property. In order to track down fugitives who are hiding overseas, the CBI serves as India's nodal agency and works with Interpol. In addition to destroying support networks, Operation Trishul attempts to gather criminal intelligence on co-accused around the world as well as on shell businesses, fraudulent business…
28 March, 2023
Economy Offence
Social Stock Exchange SEBI gave final approval to National Stock Exchange of India to establish the Social Stock Exchange (SSE). What is A social stock exchange? The SSE would operate as a distinct division within the current stock exchange and assist social businesses in raising money from the general public through its mechanism. It would act as a platform for businesses to get funding for their social activities, gain publicity, and offer greater transparency on the mobilisation and use of funds. Securities sold by for-profit social enterprises (SEs) on the Main Board are the only ones in which retail investors…
08 March, 2023
Stock market
E-pharmacies The Ministry of Health sent "show cause" letters to at least 20 businesses in February 2023 for online drug sales, including Tata-1mg, Flipkart, Apollo, PharmEasy, Amazon, and Reliance Netmeds. What is e-pharmacy? E-pharmacy refers to the purchasing and selling of drugs and other pharmaceutical products through a website or another electronic channel. These are online stores where customers can buy medications without going to physical pharmacies. Brick and mortar pharmacies are operated by about 8.4 lakh pharmacists throughout India's neighbourhoods. E-pharmacies provide the convenience of home delivery of medications to a person's doorstep through websites or mobile apps on…
08 March, 2023
eLearning
Grievance Appellate Committee (GAC) portal In accordance with the IT Regulations, 2021, the Ministry of Electronics and Information Technology has developed the Grievance Appellate Committee (GAC) portal. Regarding the portal: It will be a virtual, online platform where all aspects of the appeals process—from filing an appeal to receiving a decision—would be handled electronically. The National Informatics Center (NIC)created it. It will provide citizens the opportunity to have one of three Committees established by the government hear their concerns about content takedown requests made to social media corporations. About The Grievance Appellate Committee (GAC): Based on the newly updated Information…
08 March, 2023
eCommerce
Flagship Program On Fisheries At the ICAR-CIBA campus in Chennai, the Union Minister of Fisheries, Animal Husbandry, and Dairy launched three National Flagship Programs. About the programs: National Surveillance Programme for Aquatic Animal Diseases (NSPAAD) Phase-II: With a focus on enhancing the farmer-based disease surveillance system, NSPAAD Phase-I was introduced in 2013. Objective: To ensure that disease instances are reported swiftly, examined, and farmers receive scientific help. NSPAAD Phase II will be implemented across India, and all the state fisheries departments, along with the Marine Products Export Development Authority (MPEDA) are expected to play an essential role in this nationally…
07 March, 2023
Fisheri
Coin Vending Machine The Reserve Bank of India (RBI) is preparing to begin a pilot study to evaluate how a coin-dispensing machine that uses QR codes works (QCVM). The experiment is initially expected to be implemented at 19 venues across 12 cities across the nation. The machines are designed to be deployed in public locations like train stations, malls, and markets with a focus on convenience and accessibility. QCVM: What is it? A cashless coin dispenser called a QCVM would deliver coins in exchange for a UPI debit to the customer's bank account (Unified Payment Interface). Consumers would have the…
06 March, 2023
Banking
Karnataka Tops India’s State Energy Transition Karnataka and Gujarat have emerged as India's frontrunners in the switch to clean electricity, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember. While the IEEFA studies topics relating to energy markets, trends, and regulations, Ember is an independent, not-for-profit think tank focused on climate and energy concerns. What are the Report's Highlights? Methods of Evaluation: In the report "Indian States' Energy Transition," 16 States, which produce 90% of India's electricity, were given scores based on performance against four major criteria: Decarbonisation: Functionality of the Power System…
06 March, 2023
Energy
INTERNATIONAL INTELECTUAL PROPERTY INDEX India is poised to become a leader for emerging markets looking to transform their economies through IP-driven innovation, according to the International Intellectual Property (IP) Index 2023 published by the U.S. Chambers of Commerce, which ranks India 42nd among 55 top global economies. The US came out on top of the international IP Index, followed by the UK and France. The findings of the report: India has kept up its vigorous efforts to combat copyright infringement by granting "dynamic" injunction orders. India is poised to become a leader for emerging markets looking to transform their economies…
06 March, 2023
IPR (Intellectual Property Rights)
Defense Exports Target The Ministry of Defense recently decided to increase India's yearly aim for defense exports to $5 billion by 2024–25. Current status of export: India is one of the top 25 nations that export large quantities of weapons, according to the Stockholm International Peace Research Institute (SIPRI). In the years between 2017 and 2021, Myanmar, Sri Lanka, and Armenia were the three countries that imported the most Indian weapons, each at a rate of 50%. In the last five years, India's exports of defence goods have increased by 334%. In 2021–2022, they reached around Rs 13,000 crore. Almost…
04 March, 2023
Defense industry
Vostro Accounts & Its Functioning In order to facilitate the settlement of rupee payments for trade between India and Russia, 20 Russian banks have established Special Rupee Vostro Accounts (SRVA) with partner banks in India. The nodal officers for all major domestic banks have also been mentioned in order to resolve concerns that exporters may encounter under the arrangement. SRVA Agreement: A Vostro account is a balance held in the domestic currency of the domestic bank—in this case, the rupee—for the benefit of the foreign bank. For instance, ICICI Bank would have a Vostro Account if CITI Bank, New York…
27 February, 2023
Import / Export
UPI-PayNow Linkage Singapore's PayNow and India's UPI have been formally merged. The integration of UPI and PayNow is a significant milestone that will enable frictionless cross-border transactions between the two nations. The first nation with whom cross-border Person to Person (P2P) payment services have been launched in Singapore. The UPI-PayNow collaboration is the first of its kind in the world to include cloud-based infrastructure and involvement from non-bank financial companies. What are PayNow and UPI? A single smartphone application may instantly and quickly transfer money between two bank accounts using the UPI, or Unified Payments Interface, real-time payment system. A…
27 February, 2023
International agreements
Medical devices & Pharmaceuticals in India The Indian government is concentrating on producing high-end medical devices and pharmaceuticals as part of its effort to reduce its reliance on imports. About medical device: Engineering and medicine come together in an unusual way in the medical device sector. It entails the construction of devices that sustain life inside the human body. Medical devices include surgical instruments, diagnostic tools like X-rays, CT scans, MRIs, and handheld ultrasound imaging devices; tools for life support like ventilators and other similar devices; and implants and disposables. Unlike pharmaceuticals, medical devices rely on a variety of technologies,…
24 February, 2023
Pharmaceutical
Mad Cow Disease After a case of Mad Cow Disease was identified in the northern state of Para, Brazil has stopped exporting beef to China. Mad Cow Disease: What Is It? Commonly known as Bovine Spongiform Encephalopathy (BSE), this lethal virus affects the adult cattle's central nervous system and is degenerative, contagious, slowly progressing, and fatal. Causes: A prion protein, which is typically located on cell surfaces, is what causes BSE when it transforms into a dangerous, aberrant form. The brain and spinal cord's nervous system tissue is destroyed by these proteins after they are changed. The aberrant prion is…
02 March, 2023
Animal Husbandry
Livestock Sector in India The Indian Council of Agricultural Research (ICAR) recently completed the Ceremony for the Distribution of Animal Breed Registration Certificates. To ensure the success of the agriculture and animal husbandry industries, the Union Agriculture and Farmers Welfare Minister emphasised the necessity of identifying the numerous indigenous livestock breeds present in India. About the livestock sector: Selective breeding and keeping livestock are considered to be parts of animal husbandry. The genetic characteristics and behaviour of animals are developed further for economic gain through management and care. An significant area of the Indian economy is the livestock industry. India…
23 February, 2023
Animal Husbandry
Rural Tourism Since most of India's population lives in villages and has a lot to offer tourists, the government must promote rural tourism. Agritourism, art and culture, ecotourism, wildlife, tribal tourism, and homestays are six specialty experiences for visitors who want to travel to rural India that Rural Tourism and Rural Homestays (CNA - RT and RH) under the Ministry of Tourism has highlighted in order to promote rural tourism. About rural tourism: Any type of tourism that promotes rural life, art, culture, and heritage while also generating economic and social benefits for the surrounding area is considered rural tourism.…
22 February, 2023
Tourism
Aviation Sector in India To increase its flight capacity, Tata Group's Air India places the largest-ever order for Airbus and Boeing aircraft. More On the News: Recently, Air India inked letters of intent with Airbus and Boeing for 470 new aircraft in total, including 70 wide-body aircraft for long-distance travel. Together with 210, Airbus A320 and A321neo and 190, Boeing 737 MAX single-aisle aircraft, the orders include 40 Airbus A350, 20 Boeing 787, and 10 Boeing 777-9 wide-body aircraft. This deal has the potential to rank among the biggest by a single airline in terms of volume, easily topping $100…
21 February, 2023
Airports
Deep Sea Fish Conservation The Exclusive Economic Zone (EEZ) of Tamil Nadu (200 nautical miles) and outside territorial seas (12 nautical miles), subject to certain limits, have been approved for fishing by the Supreme Court of India. Issue: The Court's interim order against the Tamil Nadu Government's ban on purse seine fishing appears to be more concerned with administrative and transparency measures to regulate fishing than with the obligations and conservation measures that a coastal state is required to follow in its EEZ under the United Nations Convention on the Law of the Sea (UNCLOS). The order ought to have…
20 February, 2023
Fisheri
IFFCO Nano Urea To lay the cornerstone for the IFFCO nano urea liquid fertilizer factory in Jasidih, the Union Home and Cooperation Minister will travel to Deoghar in Jharkhand. About nano urea: The chemical fertiliser urea, which is white in colour, artificially supplies nitrogen, a key nutrient needed by plants. It was created to replace traditional urea and can reduce the need for it by at least 50%. It has 40,000 mg/L of nitrogen in a 500 ml bottle, which is the same amount of nitrogen as is present in one bag of regular urea and has the same…
08 February, 2023
Agriculture
Working Group on Tourism in Rann of Kutch Gujarat will host the inaugural Tourism Working Group (TWG) conference from February 7–9, 2023, as part of India's G20 Presidency. The focus of tourism will be on rural and archaeological travel. The second location for foreign delegates will be Dholavira, a UNESCO World Heritage Site. How Does the G20 Value Interventions in the Travel and Tourism Sector? There are 5 interrelated priority areas for tourism during India's G20 Presidency. Therefore, emphasis will be placed on these five key areas: The sector of Tourism's Greening Utilising the benefits of digitization Giving young people…
07 February, 2023
Tourism
Urban farming The Delhi government received the "Draft Citizen's Policy for Urban Agriculture in Delhi" from the research of the non-profit People's Resource Centre in 2022, which offered a comprehensive framework for urban farming. More about the news: Delhi gets 60% of its meat, 25% of its milk, and 15% of its vegetable needs from the produce grown in the city. However, the land use and farming policies of the National Capital do not take into account how food is produced and distributed in urban settings. The Draft Citizen's Policy for Urban Agriculture in Delhi makes the following recommendations: encouraging…
04 February, 2023
Agriculture
Reverse-flipping According to the Economic Survey 2022–23, Indian start–up businesses are considering "reverse flipping." What is reversing a flip? Flipping is the process of giving a foreign corporation complete ownership of an Indian business. Every piece of intellectual property and data that belongs to an Indian company is often transferred along with it. Reverse flipping is the process of moving a company's domicile back to India after an earlier flip. Due to easy access to finance from private equity and venture capital, modifications to the round-tripping laws, and the maturing of India's capital market, businesses reversal flip. Why do businesses…
02 February, 2023
Terminology
Union Budget 2023-24 The Annual Financial Statement is another name for the Union Budget. According to Article 112 of the Indian Constitution, a budget is a statement of the expected expenditures and revenues of the government for a specific year. The Budget maintains the government's financial records for the fiscal year (from 1st April to 31st March). The Union Finance Minister emphasized that the Indian economy is on the right track and going towards a bright future while delivering the Union Budget 2023–24 in the Lok Sabha. Three categories—the Consolidated Fund of India, the Public Account of India (Article 266),…
02 February, 2023
Budget
Economic survey 2022-2023 The Economic Survey 2023, which the Finance Minister presented to Parliament, painted a positive picture of the prospects for the Indian economy and declared that the pandemic-related doldrums were ended. India's economic recovery from the epidemic is complete, according to the Economic Survey 2022–23, and economic growth in the range of 6% to 6.8% is predicted for the upcoming fiscal year 2023–24. About the Economy Survey: It offers a thorough assessment of the status of the national economy for the year that is about to end (2022-23) with projections for the next fiscal year, covering everything from infrastructure…
01 February, 2023
Economic Survey
Open Market Sale Scheme Under the Open Market Sale Scheme, the Food Corporation of India (FCI) will transport 30 LMT of wheat from the Central Pool Stock to the market (Domestic) via various routes. Wheat will also be made available to State Governments and UTs for their programs without an electronic auction. About An Open Market Sale Scheme (OMSS): To increase the supply of food grains, FCI occasionally sells excess supplies of wheat and rice through an online auction at fixed prices. The goals of OMSS are to dispose of excess wheat and rice stocks held by FCI and to…
31 January, 2023
Food security, PDS, FCI, Buffer
2023: International Year of Millets Following a proposal by India, which aspires to establish itself as a major producer of millets, the United Nations has designated 2023 as the International Year of the Millet. The 2023 International Year of Millets will provide a chance to increase public awareness of the nutritional and health benefits of millet as well as their potential for changing climatic circumstances. Additionally, millets' potential to open up new sustainable market options for both producers and consumers will be highlighted, along with the sustainable production of millets itself. Food and Agricultural Organization (FAO) views: Resilient grains like…
31 January, 2023
Food security
Kashmiri Pashmina Shawl Famous pashmina shawls from Kashmir, known for generations for their exquisite buta or paisley patterns, received a French influence. The change from exquisite embroidery to abstract paintings on Kashmiri shawls has brought back the cloth with a more modern look. About The Pashmina: The Persian word "Pashm," which meaning "soft gold," is where the name "pashmina" originates. Cashmere, an animal fibre obtained from the Changthangi goat (Capra aegagrus hircus), of Ladakh, is the source of pashmina. It is native to Leh-Ladakh and Jammu & Kashmir's high-altitude regions. Every spring, goats used to make pashmina shed their winter…
30 January, 2023
GI Tag
T+1 settlement cycle India will follow China in implementing the one-day cycle, which will improve operational efficiency, speed up fund transfers, facilitate the delivery of shares, and make it easier for stock market participants. About the T+1 settlement cycle: The T+1 settlement cycle requires that trade-related settlements be completed a day, or 24 hours after a transaction is completed. According to T+1, for instance, if a consumer purchased shares on Wednesday, they would be deposited to their demat account on Thursday. Up to 256 large-cap and top mid-cap equities, including those listed on the Nifty and Sensex, would be subject…
30 January, 2023
Stock market
Circular Economy As part of its initiative to promote sustainability, the United Nations Development Programme (UNDP) initiated a campaign to develop an inclusive circular economy. Important aspects of the campaign: To create a sustainable paradigm for plastic waste management in India, the project is an expansion of an already-existing cooperation under UNDP's flagship Plastic Waste Management Programme. Managing plastic trash from beginning to finish by encouraging: Waste separation at the source Gathering of the separated garbage Establish Material Recovery Facilities (MRFs) to recycle various types of plastic waste. Collaboration with the private sector Additionally, Hindustan Unilever Limited (HUL) would aid…
26 January, 2023
Growth, Development and Employment
Risk of Switching to Clean Energy from Fossil Energy According to a study recently published in the journal Global Environmental Change, India's banking sector is extremely vulnerable to the risks associated with the country's economy shifting from being heavily dependent on fossil fuels to clean energy. What has been discovered? Change can have a negative impact on: As a result of its strong exposure to fossil fuel-related activities, India's banking sector will be negatively impacted by any switch to clean energy. The extraction of oil and gas accounts for 60% of credit to the mining industry. Petroleum refining and allied…
28 January, 2023
Energy
National Tourism Day & Tourism In India Every year on January 25, the nation observes National Tourism Day to recognize India's beauty and raise awareness of the value of tourism and its effects on the nation's economy. Under the auspices of "Azadi Ka Amrit Mahotsav," a 75-week long grand festival to honor 75 years of India's independence, the Ministry of Tourism is commemorating National Tourism Day. Ecotourism, cruises, business, sports, educational, rural, and medical travel are just a few of the different types of tourism offered by India. National Tourism Day 2023 does not yet have a theme. However, like…
25 January, 2023
Tourism
India's Electric Vehicle Roadmap for 2023 India's future for electric vehicles is bright because of ambitious government goals and technological breakthroughs. With around 40 crore people in need of mobility solutions by the year 2030, India is currently the fifth-largest vehicle market in the world and has the potential to become one of the top three in the near future. Electric vehicle roadmap: With the government outlining a thorough plan to reach this goal, which includes many programs and laws to speed up the adoption of electric vehicles in the nation, India has set an ambitious aim to become a…
25 January, 2023
Renewable energy
Trademark A case of trademark infringement brought by the international fast food chain Subway against Suberb, a restaurant in Delhi, was recently dismissed by the Delhi High Court. What is trademark? It is an image, term, or phrase that is used to represent a company. A trademark's owner may assert "exclusive rights" to use it once it has been registered. A trademark is a symbol that can be used to separate the products or services of one company from those of other companies. Governing Bodies in India: The trademark registration process is governed by the Trademark Act of 1999. A…
23 January, 2023
India's Trade Policy
Nano Fertilizers IFFCO's nano fertilizers and Amul's dairy products will be among the first few goods that the first National Export Co-operative Society is anticipated to export. Information about nano fertilizers: Nanotechnology in fertilizers: Using nanoparticles with a size of less than 100 nm, nanotechnology may present a once-in-a-lifetime opportunity to create concentrated sources of plant nutrients with a better absorption rate, more effective use, and minimal losses. IFFCO’s Nano Urea contains nitrogen, an element critical for plant development, in the form of granules that are a hundred thousand times finer than a sheet of paper. At this ‘nanoscale, which…
21 January, 2023
Agriculture
Grameen Udyami Project A total of 200 tribal women received certificates for completing Phase 3 of the Project's skills training. Speaking at the Grameen Udyami Project's felicitation program in Gumla , Jharkhand, Union Minister of State for Skill Development & Entrepreneurship and Electronics & IT, Rajeev Chandrasekhar, described skilling as a gateway to opportunity and said the government's goal has been to ensure skill opportunities for all in every remote corner of the country. About the Grameen Udyami project: In order to increase skill training in tribal communities for their inclusive and sustainable progress, the Grameen Udyami Scheme was established.…
21 January, 2023
Government policies and interventions
National Financial Reporting Authority (NFRA) From the current fiscal year, auditors of 1,000 big Indian publicly traded businesses will need to submit transparency reports to the National Financial Reporting Authority (NFRA) in the required manner. It will raise investor confidence in auditors and enhance their credibility. About NFRA: NFRA was established by the Indian government in 2018 in accordance with section 132 (1) of the Companies Act, 2013. It is a regulator of audits. Background: After the role of auditors and the Institute of Chartered Accountants of India came under scrutiny for alleged shortcomings in a number of corporate scandals,…
18 January, 2023
Financial Market
Microfinance Institutions (MFI) According to a recent report, Microfinance Institutions (MFI) will be crucial to India's economic development. About microfinance institution: MFI is a company that provides low-income people with financial services. Microloans, micro savings, and microinsurance are some of these services. MFIs are financial institutions that offer modest loans to borrowers without access to banking services. The term "small loans" has different meanings in different nations. All loans in India that are less Rs. 1 lakh can be categorised as microloans. Although the interest rates are typically lower than those levied by conventional banks, some opponents of this idea…
17 January, 2023
Inclusive Growth
ENERGY SECURITY IN INDIA Increasing the variety of energy sources, expanding India's footprint in exploration and production, India is concentrating on alternative energy sources and tackling the energy transition through a gas-based economy, green hydrogen, and electric vehicles (EVs) . By adding new suppliers including Columbia, Russia, Libya, Gabon, Equatorial Guinea, etc., India increased the number of its crude oil suppliers from 27 nations in 2006–07 to 39 in 2021–22. India will provide 25% of the world’s energy demand by 2040 and would blend 20% ethanol into gasoline by 2025. Energy security: What is it? The goal of energy security is…
14 January, 2023
Energy
India’s Trade with China In 2022, China's imports to India reached a record high, while the trade gap increased to more than $100 billion. Major Points Iron ore, cotton, and other commodities based on raw materials were India's largest exports to China in recent years. China's demand for these commodities recovered last year (2021). India's exports to China: From $28.1 billion to $17.48 billion, India's exports to China decreased. From $69.4 billion in 2021, the trade imbalance increased by 45% to $101.02 billion in 2022. India's imports from China are $118.5 billion, an increase from $97.5 billion. Over 21% more…
13 January, 2023
Import / Export
National Green Hydrogen Mission The National Green Hydrogen Mission was approved by the Cabinet, which stated that it will make India a major producer and supplier of green hydrogen worldwide. Green hydrogen is a form of hydrogen that is created by electrolysing water and utilising an electrolyser that is totally driven by renewable energy sources. What is the National Green Hydrogen Mission? The mission also aims to develop markets for green hydrogen and its derivatives for export In an effort to lessen reliance on fossil fuels, the energy industry should be decarbonized. Mobility applications should also employ this technology. The…
05 January, 2023
Renewable energy
Blockchain application in Agriculture Recently, the government announced plans to implement the technology across all crops grown for export to enhance food shipments and encourage farmers to adopt chemical-free practices. Blockchain could eventually give natural farming in India a technological boost. Agriculture may benefit from ground-breaking innovations and cutting-edge technologies like blockchain and artificial intelligence (AI). Blockchain technology will undoubtedly change the game for India's agrarian industry because it can deliver reliable, tamper-proof information about farms, inventory, credit scores, and food tracking. Farmers may now record and store crucial data without having to rely so heavily on papers or files.…
04 January, 2023
e-Technology in Agriculture
Bad Bank & NPA The Finance Minister recently informed the Parliament that banks had written off bad loans totaling Rs 10,09,511 crore during the previous five fiscal years. What is a bad bank? Non-profitable Assets (NPAs), sometimes known as bad loans, are purchased by bad banks from banks. By removing bad loans from banks' balance sheets and allowing them to lend to clients again without restrictions, bad banks are intended to lessen the pressure on banks. The bad bank may later attempt to restructure and sell the NPA to investors who might be interested in buying it after purchasing a…
03 January, 2023
Banking
Indian Rupee Depreciation In 2022, the Indian Rupee saw a 10% decline against the US dollar, making it the worst-performing Asian currency. This decrease was mostly caused by the US dollar's rise as a result of its safe-haven appeal during global recession and inflation fears as well as the Russia-Ukraine war. In 2022, How did the rupee perform? The rupee hit a record low against the dollar of 83.2 during the year. Other Asian currencies depreciated to a lower amount than the rupee. The value of the Chinese Yuan, Philippine Peso, and Indonesian Rupiah declined by about 9% during the…
02 January, 2023
Rupee Depreciating
26th Financial Stability Report (FSR) The Reserve Bank published the Financial Stability Report's 26th edition. The report details the Sub-Committee of the Financial Stability and Development Council's (FSDC) collective assessment of threats to financial stability and the financial system's resilience. India's banks and non-bank lenders are capable of withstanding even the worst macroeconomic stress, according to the RBI's most recent Financial Stability Report (FSR). The RBI's stress testing models have historically come under fire for having a sizable upward bias. Findings of the report: The stability of the financial system is being strengthened and resilient by the sound balance sheets…
01 January, 2023
Financial Market
Sovereign Green Bonds The Reserve Bank of India (RBI) will issue Sovereign Green Bonds for the first time in the current fiscal year in two tranches of Rs 8,000 crore each. On January 25 and February 9, the RBI would issue green bonds for five and ten years worth Rs 4,000 crore each. In November 2022, the government released the blueprint for the sovereign green bond. About the green bond: Companies, nations, and international organizations all offer green bonds, which guarantee fixed-income payments to investors while only funding initiatives that benefit the environment or the climate. The initiatives could involve,…
09 January, 2023
Financial Market
National Geospatial Policy 2022 The National Geospatial Policy 2022 was unveiled by the Ministry of Science and Technology in order to establish India as a world leader in the geospatial industry. With a growth rate of 12.8%, India's geospatial economy is predicted to reach Rs 63,000 crore by 2025 and employ more than 10 lakh people. Geospatial technology: What is it? The term "geospatial technology" is used to describe a wide range of modern tools that aid in mapping and analyzing the Earth's geography and human societies. These technologies have been evolving since the first maps were drawn in the…
07 January, 2023
Government policies and interventions
Digital Payment In India The Union Government has set aside 2,600 crores as an incentive for banks to promote digital payments. About UPI: The Unified Payments Interface (UPI) provides a simple way to move money from one bank account to another. It has grown in popularity since its debut in 2016. UPI now accounts for more than 40% of all retail digital payments (non-cash and non-paper payments) in India. The National Payments Corporation of India (NPCI) operates the UPI, which was established in 2016. It's a solution that integrates various bank accounts into a single mobile app. The Reserve Bank…
12 January, 2023
Government policies and interventions
Distorted use of fertilizers According to the Department of Fertilisers, the sale of urea increased by 3.7% from April to October 2022 compared to the same period the previous year. More on the news: Issue: The incumbent government's two ambitious schemes — the Soil Health Card and mandatory neem-coating of urea — were intended to promote the balanced use of fertilizers. Urea: Rather than weaning farmers away from urea, annual consumption of this nitrogenous fertiliser has increased from 30 to 35 million tonnes (mt) in the last five years. DAP: Another fertiliser, di-ammonium phosphate (DAP), is experiencing a similar phenomenon…
24 December, 2022
Industry
Artificial Intelligence in Agriculture The government has started a number of initiatives employing artificial intelligence (AI) and the internet of things (IoT) in agriculture. Precision farming, agricultural drones and hopping systems, livestock monitoring, climate monitoring, smart greenhouses, AI and IoT-based computer imagery, and other applications are examples. To encourage innovation and agripreneurship by providing financial support and fostering the incubation ecosystem, the Department of Agriculture and Farmers Welfare nominated 5 Knowledge Partners and 24 Agribusiness Incubators. Various Government Initiatives are as follow : A National Mission on Interdisciplinary Cyber Physical Systems (NM-ICPS) It is being carried out by the Department…
20 December, 2022
e-Technology in Agriculture
Self-Reliance in Defence Sector The government has implemented a number of reforms and legislative efforts over the past few years to stimulate domestic design, development, and production of defence equipment, thereby encouraging self-reliance in the nation's defence industry & technology. Steps taken by the government: Process for industrial licencing has been streamlined with a longer term of validity Foreign Direct Investment (FDI) policy liberalisation permitting 74% FDI via automatic route The Innovations for Defence Excellence (iDEX) programme was launched with the participation of startups and micro, small, and medium-sized businesses (MSMEs) SRIJAN, a new indigenization portal launched to help Indian…
19 December, 2022
Defense industry
India Development Report: World Bank In its "Navigating the Storm" India Development Report, the World Bank (WB) revised its estimate of 6.9% growth for India's economy in 2022–2023. India's GDP (Gross Domestic Product) growth forecast was lowered by the World Bank in October 2022 from 7.5% to 6.5%. Which points stand out the most? Growth Projection: The Bank predicts that the Indian economy will expand at a slightly slower 6.6% rate in 2023–2024 as a result of a difficult external environment and weak global growth, which will have an impact on its outlook for the economy through a variety of…
13 December, 2022
Growth, Development and Employment
National Bamboo Mission The National Bamboo Mission (NBM) has recently been reorganized, and the Ministry of Agriculture has formed an Advisory Group to streamline the development of the bamboo sector. About The National Bamboo Mission: The National Bamboo Mission (NBM), which has been reorganised, was introduced in 2018–19 as a Centrally Sponsored Scheme (CSS). NBM primarily focuses on the development of the entire value chain of the bamboo industry to connect producers with consumers, starting with planting materials, plantations, the establishment of facilities for collection, aggregation, processing, marketing, micro, small & medium enterprises, skilled manpower, and brand-building initiatives in a…
12 December, 2022
Allied agriculture activities
India Inequality Report 2022: Digital Divide Oxfam India recently published the 'India Inequality Report 2022: Digital Divide.' Highlights from the report: Data from the Centre for Monitoring Indian Economy's (CMIE): The report examines primary data from the Centre for Monitoring Indian Economy's (CMIE) household survey, which was conducted from January 2018 to December 2021. Internet users among Indian women: Indian women are 15% less likely than men to own a mobile phone and 33% less likely to use mobile internet services. In India, women account for only one-third of internet users. India's global position: According to the study, India has…
08 December, 2022
eLearning
India's Aviation Safety In the most recent International Civil Aviation Organization (ICAO) rankings, India has risen to 48th place from 102nd in 2018. Important Points: The total number of countries is: The rankings cover 187 countries and were completed at various points in time. An ICAO Coordinated Validation Mission (ICVM) was conducted from November 9 to 16 as part of its Universal Safety Oversight Audit Programme (USOAP) Continuous Monitoring Approach. Six areas were evaluated for Effective Implementation (EI): Primary Aviation Legislation and Specific Operating Regulations are referred to as LEG. ORG stands for Civil Aviation Organization. PEL stands for Personnel…
08 December, 2022
Airports
Kirit Parikh Gas Pricing Panel The government recently appointed a Kirit Parikh committee to review the gas pricing formula. The committee's major recommendations: Maximum cost: A fixed pricing band for gas from old fields, known as APM (Administrative Price Mechanism) gas, is required. These fields produce two-thirds of the country's natural gas. This would provide producers with a predictable pricing regime while also lowering CNG and piped cooking gas prices. Prices have risen by 70% since 2021 due to rising input costs. Currently, legacy or old fields are governed on a nomination basis without any requirement of profit sharing, and…
07 December, 2022
Energy Reforms
Rooftop Solar Installations According to Mercom Research India, rooftop solar capacity installations in India fell 29% to 320 megawatts (MW) in July-September 2022. What are the Results? Cumulative Installations: As of the end of the third quarter of 2022, cumulative rooftop solar (RTS) installations stood at 8.3 GW. Gujarat overtook Maharashtra and Rajasthan as the state with the most rooftop solar installations. The top ten states accounted for roughly 73% of total rooftop solar installations. Installations are declining: Installations were also down 11% from January to September, totaling 1,165 MW, compared to 1,310 MW in the same nine-month period in…
06 December, 2022
Renewable energy
Russia’s Advanced Fuel Option for KKNPP Rosatom, Russia's state-owned nuclear energy corporation, recently offered a more advanced fuel option to India's largest nuclear power plant in Kudankulam (KKNPP), Tamil Nadu. It will be able to run its reactors for an extended two-year cycle without stopping to load new fuel. Kundankulma Nuclear Power Plant Reactors (KKNPP) Update: TVEL Fuel Company, a subsidiary of Rosatom, is the current supplier of TVS - 2 M fuel for the two VVER 1,000 MWe reactors that power the Kudankulam Nuclear Power Project (KKNPP). Because this fuel has an 18-month fuel cycle, the reactor must be…
05 December, 2022
Energy
Periodic Labour Force Survey 2022 The Periodic Labour Force Survey (PLFS) was just released by the National Statistical Office (NSO). In metropolitan areas, the unemployment rate decreased from 9.8% in July-September 2021 to 7.2% in July-September 2022. What are the main conclusions of the PLFS (July–September 2022)? Unemployment Ratio: The percentage of unemployed people among those who are eligible for employment is referred to as the unemployment ratio. 6.6% of males and 9.4% of women were unemployed (compared to 9.3% and 11.6% in July-September 2021). Worker-Population Ratio (WPR): The WPR is the proportion of the population that is employed. In…
03 December, 2022
Unemployment
MAARG PORTAL A recent call for startup applications for registration on the Mentorship, Advisory, Assistance, Resilience, and Growth (MAARG) portal has been issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. About The MAARG Portal: The National Mentorship Platform by Startup India is the MAARG platform. It is a one-stop platform that enables mentorship for entrepreneurs in a variety of industries, roles, stages, locations, and backgrounds. Key characteristics: programs for ecosystem enablers to receive mentoring responsive user interface Gratitude for valuable mentors options for voice and video calls Three steps make to…
02 December, 2022
Government policies and interventions
Resolving India's Malnutrition Crisis Experts have proposed several solutions to the problem of chronic malnutrition. About Malnutrition: It refers to deficiencies, excesses, or imbalances in a person's energy and/or nutrient intake. It is a persistent issue and a long-standing challenge for India's public administration. Malnutrition refers to three broad categories of conditions: Undernutrition: Wasting (low weight-for-height), stunting (low height-for-age), and underweight (low weight-for-age) are all examples of malnourishment. The stunted and wasted children are considered underweight, indicating a lack of proper nutritional intake and inadequate post-partum care. Malnutrition related to micronutrients: It includes micronutrient deficiencies (a lack of essential vitamins…
01 December, 2022
Malnourishment
National Centre Of Excellence for Green Port & Shipping At "INMARCO 2022" in Mumbai, India's first National Centre of Excellence for Green Port & Shipping (NCoEGPS) recently made its debut. The Institute of Marine Engineers hosts the INMARCO, an international maritime conference and exhibition, every four years. About NCoEGPS. The Ministry of Ports, Shipping, and Waterways (MOPSW) has launched a significant drive to offer more environmentally friendly alternatives. The MoPSW's Sagarmala initiative will serve as the framework for the NCoEGPS' operations. The project's knowledge and execution partner is the Energy and Resources Institute (TERI). Aim: The centre wants to promote…
01 December, 2022
Ports
Coal: Dominant energy source in India Despite efforts to transition to renewable energy, coal will continue to be India's dominant energy source. What is the country's current energy capacity? According to Climate Action Tracker projections, fossil fuel accounts for more than half of the country's installed energy capacity and is expected to reach around 266 gigatonnes by 2029-2030. Domestic coal demand is expected to rise from 678 million tonnes in 2021-2022 to 1,018.2 million tonnes in 2031-32. This means that India's coal consumption will rise by 40%. What is the Cause of Rising Coal Demand? Coal is used in the…
29 November, 2022
Energy
Development of Great Nicobar The Ministry of Environment, Forests, and Climate Change recently approved an ambitious Rs 72,000 crore development project on the strategically important Great Nicobar Island. Over the next 30 years, the project will be implemented in three phases. About the proposal A greenfield city with an International Container Trans-shipment Terminal (ICTT), a greenfield international airport, and a power plant has been proposed. The Indian Navy will control the port, while the airport will serve dual military-civilian purposes as well as tourism. A total of 166.1 sq km along the island's southeastern and southern coasts have been identified…
29 November, 2022
Infrastructure
Non-performing assets According to RBI data, the mega write-off exercise has enabled banks to reduce their non-performing assets (NPAs) or defaulted loans by Rs 10,09,510 crore ($123.86 billion) over the last five years. However, banks have only been able to recover 13% of it so far. Concerning the news This massive write-off would have been enough to cover 61% of India's projected gross fiscal deficit of Rs 16.61 lakh crore in 2022-23. As of March 2022, the banking sector reported a decrease in gross NPAs to Rs 7, 29,388 crores, or 5.9 percent of total advances. In 2017-18, gross NPAs…
28 November, 2022
NPA
Nicobar Hodi Craft The Andaman and Nicobar Islands recently filed an application for the Geographical Indication (GI) tag for the Nicobari Hodi craft. This is the Union Territory's first application for a tag for one of its products. Previously, Mithila Makhana received the GI designation from the government. What is Nicobari Hodi? The hodi is the traditional craft of the Nicobari tribe. It is an outrigger canoe, which is very common in the Nicobar group of islands. The technical skills required to construct a hodi are based on indigenous knowledge passed down to the Nicobarese from their forefathers. The hodi…
28 November, 2022
GI Indicators
Financial Consumer Protection (FCP) The OECD recently published a draft of proposed revisions to their 2011 High-level Principles on Financial Consumer Protection (FCP). More on the news: The OECD is working on ways to improve financial consumer protection, including determining what is needed to help consumers gain the confidence, knowledge, information, security, and choices they need to fully participate in financial markets. The OECD's principles address three interconnected themes: financial well-being, digitalization, and sustainable finance. The OECD's FCP principles for 2011 addressed ten thematic areas, including Market and consumer issues, Equitable and fair consumer treatment, Disclosures and transparency, and Financial education.…
26 November, 2022
Financial Market
National Bio Energy Programme As part of the Azadi Ka Amrit Mahotsav, the Ministry of New and Renewable Energy recently organised a seminar on the National Bio Energy Programme in New Delhi in collaboration with UNIDO and the GEF. Introduction Biomass is simply organic matter, which means it is derived from anything that is or has been alive, such as animal waste, crop waste, garden waste, and so on. India has an abundance of renewable energy resources, which should be promoted in any way possible. Animal waste, kitchen leftovers, crop residue, market waste, and faecal sludge are all examples of…
26 November, 2022
Renewable energy
Finfluencers The Securities and Exchange Board of India (SEBI) is drafting regulations for "finfluencers," as they are also referred to. Finfluencers are persons who use open social media platforms to share their personal stories and recommendations regarding money and stock investments. Their films offer advice on setting a budget, investing, purchasing real estate, using cryptocurrencies, and monitoring market trends. What is the purpose of the rules? There are now significantly more "unregistered" investment advisors offering unasked-for "stock" suggestions on social media networks. Additionally, several businesses employed finfluencers to increase the value of their stock using social media sites. There is…
25 November, 2022
Terminology
India and Norway in the Green Maritime Sector The 8th Norway-India Joint Working Group Maritime meeting was recently held in Mumbai. Indo-Norway collaboration in the GREEN MARITIME Sector The history of maritime trade with Norway dates back to 1600. Norway has technical expertise in the maritime sector, and India has enormous potential for maritime development and a large pool of trained seafarers, making both countries natural complementary partners. The 7th JWG on Maritime was held in Oslo in 2019, and issues such as shipbuilding cooperation, enhancing seafarer skills, and environmentally friendly ships were discussed. New Developments: The use of alternative…
24 November, 2022
Ports
Food-Animal Farming and Antimicrobial Resistance Animal health issues in factory farming have a severe impact on food safety, the environment, and the climate, which can result in antibiotic resistance (AMR). Farming of pigs, cows, and birds in close quarters is known as factory farming or intensive food-animal farming. These are industrial settings where numerous animals are raised in enormous numbers, primarily indoors, in circumstances designed to maximize output at the lowest possible cost. What Problems Exist? Too frequently, the suffering of animals on farms around the world is disregarded or perceived as unrelated to major problems like pandemics and the…
24 November, 2022
Animal Husbandry
Global Offshore Wind Alliance (GOWA) At COP27, nine more nations just joined the Global Offshore Wind Alliance. Belgium, Colombia, Germany, Ireland, Japan, the Netherlands, Norway, the UK, and the US are the nine new nations. Australia declares its membership in the international offshore wind alliance. What is GOWA, or the Global Offshore Wind Alliance? The expansion of offshore wind was established to address the energy and climate challenges. It was founded by the Global Wind Energy Council, Denmark, and the International Renewable Energy Agency (IRENA). In order to provide a reliable and inclusive forum for the entire wind energy industry…
23 November, 2022
Renewable energy
National Press Day Every year on November 16th, India celebrates National Press Day to commemorate the establishment of the Press Council of India. About India's Press Council It was founded in 1966 under the Indian Press Council Act, 1965, on the recommendations of the first Press Commission, with the dual goal of preserving press freedom and improving the standards of newspapers and news agencies in India. It was re-established as a quasi-judicial autonomous authority in 1979 by an Act of Parliament, the Press Council Act of 1978. In its duty to protect the press's independence, the Press Council of India…
16 November, 2022
Government policies and interventions
About Vostro and Nostro Accounts The Reserve Bank of India (RBI) has approved the opening of nine Special Vostro Accounts with two Indian banks, UCO and IndusInd Bank, to facilitate rupee trade overseas. Regarding the Vostro account It is an account held by a domestic bank for a foreign bank in the domestic bank's currency, which in India is the rupee. Payments in rupee for the export and import of goods will be made to these Vostro accounts in the case of trade with Russia. The exporters and importers in both countries will be the owners and beneficiaries of this…
21 November, 2022
Banking
Summit on Leadership for Industry Transition On the sidelines of COP27 in Sharm El Sheikh, Egypt, India and Sweden hosted the Leadership for Industry Transition (LeadIT) Summit. Following the summit, the LeadIT Summit Statement 2022 was made public in the India Pavilion at COP27. What are the Summit's Highlights? Members of LeadIT reaffirmed their commitment to pursuing the low-carbon transition. The event featured roundtable discussions on finance and other cross-sectoral issues, as well as perspectives on the requirements for successful low-carbon transitions. Members also agreed to help new members and emerging economies with technical assistance. The significance of de-risking investments…
21 November, 2022
Industry
US Currency Monitoring List India is one of the few countries that has recently been removed from the Department of Treasury's United States Currency Monitoring List. What is the Currency Monitoring List of the United States? It is a twice-yearly report to Congress. The report examines the policies of the United States trading partners over the last four quarters, ending in June 2022. It has also removed Italy, Mexico, Vietnam, and Thailand from the list. The report also includes a look at the c." The list closely monitors the currency practices and policies of some of the United States' major…
16 November, 2022
India-USA trade relations
Pashmina Shawl Customs officials recently voiced complaints over the presence of "Shahtoosh" guard hair, which comes from endangered Tibetan antelopes, in Pashmina shawls in many of their export shipments. Describe Pashmina. Pashmina is a type of wool with a Geographical Indication (GI) label that originates in the Indian state of Kashmir. In the past, the Kashmiri people relied on Pashmina shawls to keep them warm in the winter. The word "Pashmina" derives from the Persian word "Pashm," which refers to a weaveable fibre, specifically wool. Due to the high quality of the wool used and the labour-intensive process required to…
15 November, 2022
GI Tag
India’s First Sovereign Green Bonds Framework The final Sovereign Green Bonds Framework of India was just authorised by the Union Minister for Finance & Corporate Affairs. It will be possible to raise money for green projects by issuing sovereign green bonds. What is the framework for sovereign green bonds? The Framework closely follows the Prime Minister's explanation of India's "Panchamrit" pledges at the Conference of Parties (COP) 26 in Glasgow in November 2021. India's dedication to its Nationally Determined Contribution (NDC) targets, set forth under the Paris Agreement, would be further strengthened. In order to approve important choices for the…
15 November, 2022
Financial Market
Form Waste-to-Energy The Central Government recently released rules for implementing its waste-to-energy program, opening the door for businesses to produce biogas, bio CNG, and electricity from trash and leftovers from urban, industrial, and agricultural sources. About the Waste-to-Energy Program: The National Bioenergy Program was initiated by the Ministry of New and Renewable Energy (MNRE). MNRE has continued the National Bioenergy Programme for the period from FY 2021-22 to 2025-26. It consists of the following sub-scheme: Sub-Schemes: Energy from Waste Program: (Programme on Energy from Urban, Industrial and Agricultural Wastes /Residues) to support setting up of large Biogas, BioCNG and Power…
10 November, 2022
Renewable energy
Indian Black Honeybee A new endemic honeybee species has been discovered in the Western Ghats. Regarding species: Apis karinjodian is the scientific name for the new species, which is also known as the Indian black honeybee. After more than 200 years, it was spotted from the Western Ghats. Fabricius described Apis indica as the last honeybee from India in 1798. Despite the fact that Fabricius named the Indian bee Apis indica, it was not considered a valid species until recently. The researchers restored Apis indica's status using the 'Radio-Medial Index,' a new measure for species discrimination in honeybees (RMI) Apis…
09 November, 2022
Allied agriculture activities
Portal on National Mission on Natural Farming The Union Agriculture Minister recently launched a portal on the National Mission on Natural Farming (NMNF) for the benefit of farmers. Important Points about The NMNF website: The Agriculture Ministry is in charge of its development. It was launched here at the National Natural Farming Mission's first steering committee meeting. The portal contains all of the mission's information, implementation outline, resources, implementation progress, farmer registration, blog, and other useful information for farmers. Authorities working together: The officers are responsible for coordinating with state governments and central departments in order to facilitate market linkage and…
07 November, 2022
Agriculture
India Chem 2022 India Chem 2022, the 12th Biennial International Exhibition and Conference, was recently opened in New Delhi's Pragati Maidan. "Vision 2030: Chemicals and Petrochemicals Build India" is the topic of India Chem 2022. What is the state of the Indian chemical industry? The vastly diversified Indian chemical sector can be broadly divided into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. India is the world's fourth-largest producer of agrochemicals, behind China, Japan, and the United States. The sixth-largest chemical manufacturer in the world is India. India is the second-largest producer and exporter…
05 November, 2022
Industry
First Floating Financial Literacy Camp in India In order to promote financial literacy "By the women, for the women," India Post Payments Bank (IPPB) recently held India's First Floating Financial Literacy Camp in Srinagar, J&K. What is The Niveshak Didi Initiative? It is founded on the principle of "women for women," as women in rural areas find it more comfortable to ask females for advice. Executing Organization: Under the direction of the Ministry of Corporate Affairs, the IPPB in conjunction with the Investor Education and Protection Fund Authority (IEPFA) launched it. Financial Literacy Camp on the Water: The discussion addressed…
03 November, 2022
Financial inclusion
Digital Rupee The first pilot in the Digital Rupee, Wholesale segment according to the Reserve Bank of India (RBI), will start on November 1st, 2022. The first trial in the Digital Rupee - Retail category will debut in a month in a few key areas with closed user groups made up of consumers and retailers. Describe Digital Rupee. A digital version of currency notes produced by a central bank is known as a Central Bank Digital Currency (CBDC) or Digital Rupee. It is a digital method of payment that supports contactless exchanges. It is characterized as the Reserve Bank of…
02 November, 2022
Digital currency
Kalanamak Rice Indian Agriculture Research Institute has successfully tested two new dwarf varieties — Pusa Narendra Kalanamak 1638 and Pusa Narendra Kalanamak 1652 — in Uttar Pradesh that give double the yield. The breeding programme is done by bringing the dwarfing genes from the rice variety Bindli Mutant 68, and also the gene of Pusa Basmati 1176 was used as a parent to cross with Kalanamak, and the progenies were further back-crossed with Kalanamak to restore its quality. About Kalanamak Rice Kalanamak is a traditional variety of paddy with black husk and strong fragrance, which is considered a gift from…
31 October, 2022
GI Tag
Rupee's Internationalization The benefits and dangers of the internationalisation of the rupee were recently emphasised by a Reserve Bank of India (RBI) deputy governor. What is rupee internationalisation? The process of internationalising the rupee entails using it more frequently in cross-border transactions. It entails encouraging the use of the rupee in import and export trade as well as other current account transactions before moving on to capital account usage. The rupee is fully convertible in the current account but only partially convertible in the capital account. The two parts of the balance of payments are the current and capital accounts.…
28 October, 2022
Forex
Explained: Self Reliant India The Prime Minister recently emphasised the importance of promoting indigenous products and self-sufficiency. More on the news Self-sufficiency:Promoting indigenous products and self-sufficiency is important for prosperity, and by adopting them, one can keep India's traditional art, culture, and civilisation alive. About Vijay Vallabh Surishwar, a Jain saint: The Prime Minister was speaking at a gathering to commemorate the 150th birth anniversary of Jain saint Vijay Vallabh Surishwar. The Union Culture Ministry organised the event. A commemorative postage stamp and coin honouring Acharya Surishwar were also released as part of the celebration. Historical significance: The Prime Minister…
27 October, 2022
Government policies and interventions
Blue Flag Certification Lakshadweep's Minicoy Thundi and Kadmat beaches recently earned the Blue Flag international environmental certification. Major Points One of the Lakshadweep archipelago's most beautiful and unspoiled beaches is The Thundi Beach. The lagoon's turquoise water is bordered by white sand. Both swimmers and tourists will find it to be a paradise. Popular among cruise visitors who come to the island for water sports is the Kadmat Beach. With its pearl white sand, blue lagoon waters, comfortable climate, and welcoming locals, it is a paradise for nature lovers. Both beaches have personnel assigned to beach upkeep and cleanliness as…
26 October, 2022
Tourism
Pokkali Rice Pokkali is a historical hereditary rice crop grown in Kerala's coastal regions, including Ezhikkara and Ernakulam, and is supported by Palliyakal Cooperative Service Bank (PCSB). Pokkali is an old farming system that alternates one season of rice growing with another season of prawn culture. Prawn seedlings graze on the remains of the harvested crop as they swim in from the sea and backwaters after the rice harvest. The rice crop, which receives no additional fertiliser or manure, obtains nutrients from prawn excrement and other leftovers. Rice and prawn cultivation are mutually beneficial. Pokkali has an excellent gene pool…
22 October, 2022
Agriculture
Swadesh Darshan Scheme 2.0 The government recently chose 15 States from around the nation to be marketed as part of India's new domestic tourism policy as part of the first phase of the "Swadesh Darshan 2" (starting in January 2023). This policy abandons tourist circuits based on themes and instead places an emphasis on revitalising destination tourism. Ajanta and Ellora in Maharashtra, Gwalior, Chitrakoot, and Khajuraho in Madhya Pradesh, and Jhansi and Prayagraj in Uttar Pradesh are a few of the well-known locations mentioned. About The Swadesh Darshan Scheme: Theme-based circuits: The Buddhist Circuit, Coastal Circuit, Desert Circuit, Eco Circuit,…
19 October, 2022
Tourism
GM Mustard (DMH-11) The Central government may soon approve genetically modified crops, but protestors are still fighting to prevent their commercial usage. Approval of GM Mustard (DMH-11) The Union Ministry of Environment, Forest, and Climate Change's Genetic Engineering Appraisal Committee (GEAC) may give its approval for the commercial production of modified mustard. This would be the first time since 2002 that GM mustard, a hybridised variant of the mustard species that has undergone genetic modification, has been approved for mass consumption. After testing at the Punjab Agricultural University (PAU) and Indian Agricultural Research Institute (IARI), New Delhi, the national government…
20 October, 2022
Agriculture
DefExpo-2022 In Gandhinagar, Gujarat, the 12th edition of DefExpo 2022 is being conducted. DefExpo's 11th iteration took place in Lucknow, Uttar Pradesh, in 2020. Define DefExpo 2022. The Ministry of Defence's flagship biennial event, DefExpo, showcases land, marine, aviation, and homeland security technologies. It is being hosted in a groundbreaking four-venue format that aims to engage the public and motivate people to work in the aerospace and defence manufacturing industry in order to fulfil the concept of "Aatmanirbharta" in the military. The objective is to demonstrate the strength of the indigenous defence sector, which is currently driving the government's and…
18 October, 2022
Defense industry
Compressed Biogas (CBG) According to the Union Petroleum Minister, Compressed BioGas (CBG) is essential, and the government is taking all appropriate measures to advance the CBG ecosystem. About: In Lehragaga, Sangrur in the province of Punjab, the Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs officially opened the largest compressed biogas facility in Asia. The Sangrur CBG facility served as the launch pad for India's grand strategy for a CBG-based rural economy. One of Germany's top bioenergy firms, Verbio AG, invested around Rs. 220 crores in FDI to commission the Plant. The usefulness of CBG Plant…
18 October, 2022
Energy
India’s First Aluminum Freight Rake India's first freight rail rakes made entirely of aluminium were recently introduced by the Union Minister for Railways. Details about the news These freight rail rakes are made entirely of aluminium, according to Hindalco. The development of the aluminium rakes aims to modernise freight transportation and enable significant carbon savings for Indian Railways. The Bhubaneswar station has flagged off 61-wagon rakes. The rakes are 180 tonnes lighter than steel rakes currently in use. They have a 5–10% greater payload capacity. They use less energy and cause relatively little damage to the rails and rolling stock.…
17 October, 2022
Railways
Japan seeks GI tag for Nihonshu Nihonshu/Japanese sake, an alcoholic beverage, has been submitted for a Geographical Indication (GI) tag by the Japanese Embassy in New Delhi. This is the first product from Japan to submit an application for a tag at the Chennai Geographical Indication Registry. Regarding Nihonshu This fermenting rice-based beverage is regarded as a rare and priceless commodity. Nihonshu is typically consumed on special occasions like holidays, weddings, and funerals, but it is also ingested every day. As a result, it is fundamental to Japanese culture and lifestyle. The second largest brewed liquor (such as beer) market…
17 October, 2022
GI Tag
Minimum Support Prices (MSP): Detail Explanation Recently, the Minimum Support Prices (MSP) for all required rabi crops for the marketing season 2023–2024 were raised with the approval of the Cabinet Committee on Economic Affairs, which is chaired by the Prime Minister. Major Points MSP increase for the wheat crop: Rs 110 per quintal (5.46%) more. Other rabi crops, including rapeseed, mustard, safflower, gramme, and lentil (masur), have increased by 2.01 to 9.09 per cent. The maximum increase in MSP: Masur lentils have received the highest increase in MSP, approved at Rs 500 per quintal, in absolute terms. Rapeseed and mustard…
17 October, 2022
MSP
One Nation, One Fertilizer’ Scheme The 'One Nation, One Fertilizer' initiative was recently launched. More on the 'One Nation, One Fertilizer' initiative The scheme requires all fertilizer companies, State Trading Entities (SMEs), and Fertiliser Marketing Entities (FMEs) to use a single "Bharat" brand and logo under the Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP). The PMBJP logo and the new "Bharat" brand name will cover two-thirds of the front of the fertilizer packet. The single brand name for UREA, DAP, MOP and NPK, etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK On the remaining one-third space, the manufacturing…
15 October, 2022
PMBJP
Global Multidimensional Poverty Index (MPI) 2022 The United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) recently released the Global Multidimensional Poverty Index (MPI) 2022. What are the Index's main highlights? Global Information: Multidimensional poverty affects 1.2 billion people. Children under the age of 18 accounts for half of the poor (593 million). Sub-Saharan Africa has the poorest people (579 million), followed by South Asia (385 million). Together, the two regions are home to 83% of the poor. Pandemic Effects: However, the data do not reflect post-pandemic changes. According to the report, the Covid-19 pandemic…
15 October, 2022
Poverty
Proposed Digital Rupee by RBI E-rupee (e'), also known as Central Bank Digital Currency (CBDC) or digital rupee, will shortly be launched as a limited pilot program by the Reserve Bank of India (RBI) for particular use cases. For various transactions, it has alluded to the use of two main kinds of e-rupee: retail and wholesale. Describe e-rupee. Definition: The central bank's digital version of currency notes is known as the CBDC, according to RBI. The central bank (in this case, the RBI) issues it as a sovereign or fully autonomous currency in accordance with the nation's monetary policy. Legal…
08 October, 2022
Digital currency
Global Hunger Index 2022 India has performed worse than every nation in South Asia, with the exception of war-torn Afghanistan, according to the Global Hunger Index 2022. It came in at number 107 out of 121 nations. Referring to the Global Hunger Index (GHI) India dropped to 101st place out of 116 countries according to the GHI 2021. (from its 94th position in 2020). The GHI is a tool created to fully assess and monitor hunger at the international, regional, and national levels, reflecting many aspects of hunger throughout time. Published by: The largest assistance and humanitarian organisation in Ireland,…
14 October, 2022
Hunger
LEADS Report 2022 The Logistics Ease Across Different States (LEADS) Report 2022 was recently released by the Ministry of Commerce and Industry. The LEADS is a data-driven index developed in-house to evaluate logistics infrastructure, services, and human resources across all 36 states and territories. LEADS continues to serve as a guiding and connecting mechanism for the identification of interventions that improve logistics efficiency at the state and territorial levels. It has a positive impact on international indices such as the Logistics Performance Index. In 2018, the first logistics report was published. What are the most important findings? Unlike previous versions…
13 October, 2022
Logistic
Public-Private Partnership Model 16 railway stations will soon be put up for bid under the public-private partnership (PPP) model, according to the Railway Ministry. These train stations will be updated to provide better accessibility and fundamental amenities for travellers. This is in addition to the 1253 railway stations that the Adarsh Station Scheme has designated for development. About public-private partnership It's a partnership between the public and private sectors for the delivery of public goods and/or services. Large-scale government projects like highways, bridges, or hospitals can be accomplished with private finance due to public-private partnerships. In this kind of relationship,…
12 October, 2022
Infrastructure
Doom Loop There is a chance that the British economy will get stuck in a "doom loop." What is Doom Loop? The doom loop is a circle of vulnerability where a country's banking system can be badly harmed by price volatility in the sovereign bonds they hold as reserves, leading to a contraction in lending given by the banks. As a result of the domestic economy slowing down as a result of the credit contraction, the price of the sovereign's bond issues continues to decline. This is because the government is being compelled to increase borrowing in order to maintain…
11 October, 2022
Terminology
The First Solar-Powered Village in India Modhera, a village in Gujarat's Mehsana district, was recently dubbed India's first solar-powered village by the prime minister. What Standout Features Define India's First Solar-Powered Village? Modhera Village is well-known for its Sun Temple, a revered historic landmark located on the Pushpavati River. It was constructed in 1026–1027 by Chalukya dynasty King Bhima–I. The temple will get a 3-D projection system that will educate visitors about Modhera's past. Solar Power Generation: The solar power village will utilise 1000 solar panels that have been installed on the village homes to generate electricity 24 hours a…
11 October, 2022
Energy
Second World Geospatial Information Congress, Hyderabad The Prime Minister recently spoke at Hyderabad's second United Nations World Geospatial Information Congress. The Geospatial Sector in India According to data, India's geospatial economy is projected to reach Rs63,100 crore by 2025, growing at a 12.8% annual rate. By increasing productivity, assuring sustainable infrastructure design, and efficient administration, and supporting the agricultural sector, geospatial technology has emerged as one of the main accelerators in socio-economic development. United Nations World Geospatial Information Congress (UNWGIC) In 2018, Deqing, Zhejiang Province, China hosted the inaugural World Geospatial Information Congress of the United Nations. Every four years,…
10 October, 2022
Telecom sector
Drop in Foreign Exchange Reserves The Reserve Bank of India (RBI) estimates that during the past 13 months, India's foreign exchange reserves have decreased by USD 110 billion. Forex Reserves: What Are They? Foreign currency holdings, such as bonds, treasury bills, and other government securities, are known as forex reserves and are assets held in reserve by central banks. The majority of the world's reserves are held in US dollars. Components: Foreign Currency Assets Gold reserves Special Drawing Rights Reserve position with the International Monetary Fund (IMF). Significance of Forex Reserves: Supporting and preserving confidence in the monetary and exchange…
10 October, 2022
Forex
Sustainable Finance for the Future A Committee on Sustainable Finance, appointed by the International Financial Services Centres Authority (IFSCA), has submitted its report on Sustainable Finance, which includes recommendations for the development of the carbon market, among other things. What exactly is Sustainable Finance? Sustainable finance is defined as investment decisions that consider an economic activity's or project's environmental, social, and governance (ESG) factors. Environmental factors include climate change mitigation and the use of renewable resources. Human and animal rights, as well as consumer protection and diverse hiring practises, are examples of social factors. The management, employee relations, and compensation…
07 October, 2022
Financial Market
Aatmanirbhar in Defence Production India ranks fourth among the 12 countries in the Indo-Pacific in terms of its ability to produce weaponry independently, according to new research. Details about the study by SIPRI: The Stockholm International Peace Research Institute (SIPRI) published the findings SIPRI is a well-known independent source for information on international security. Countries: The study's 12 participants were chosen because they had the largest military expenditures in the region. The following countries are included: Australia, China, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Singapore, Taiwan, Thailand, and Vietnam. Results: China is at the top of the list, followed…
07 October, 2022
Defense industry
Poverty and Shared Prosperity in 2022 A paper titled "Poverty and Shared Prosperity 2022: Correcting Course" was just published by the World Bank. What are the Report's Findings? Global Poverty Reduction: Since 2015, the rate of global poverty reduction has been sluggish, but the cholera pandemic and the Ukraine conflict have completely turned the trend around. The rate of extreme poverty around the world had decreased by more than half by 2015. Since then, global economic growth has slowed as poverty alleviation has also slowed. As a result, the 2030 global objective to alleviate severe poverty would not be met.…
06 October, 2022
Poverty
Listing of Regional Rural Banks (RRBs) on Stock Exchanges The Finance Ministry has released the draught rules for Regional Rural Banks (RRBs) listing on stock exchanges. In the distribution of credit in rural places, RRBs are essential. Details about the news: Regional rural banks (RRBs) would be permitted to list on stock exchanges and raise money, according to the Finance Ministry's proposed regulations. The RRBs should meet the following requirements: Over the previous three years, RRBs should have had a net worth of at least Rs 300 crore. Additionally, these banks must have an operating profit of at least Rs…
04 October, 2022
Banking
5G Services: Advantages & Challenges On the sidelines of the India Mobile Congress 2022 opening ceremony, the Indian Prime Minister recently announced the availability of 5G services in India. About The fifth generation of wireless technologies or mobile networks is known as 5G. Following 1G, 2G, 3G, and 4G networks, it is a new international wireless standard. Network: 5G makes it possible for a novel sort of network, one that connects practically everyone and everything—including machines, objects, and devices—to one another. Goals: 5G will offer more consumers a more consistent user experience, huge network capacity, ultra-low latency, higher multi-Gbps peak…
03 October, 2022
Telecom sector
Global Innovation Index 2022 India was recently ranked 40th out of 132 in the World Intellectual Property Organization's Global Innovation Index (GII) 2022 rankings (WIPO). In 2021, India was ranked 46th, up from 81st in 2015. What are the Report's Highlights? Countries are ranked as follows: For the 12th year in a row, Switzerland is the most innovative economy in the world in 2022, followed by the United States, Sweden, the United Kingdom, and the Netherlands. China is closing in on the top 10, while Turkey and India break into the top 40 for the first time. India's performance: India…
01 October, 2022
Government policies and interventions
Skill Development in India: Challenges and Issues The 13th Federation of Indian Chambers of Commerce and Industry (FICCI) Global Skills Summit 2022 was recently inaugurated by the Union Skill Development and Entrepreneurship Minister. Theme: Making It Happen: Education to Employability. ??????? What is the Current Situation of Skill Development in India? According to the 2015 Report on National Policy on Skill Development and Entrepreneurship, only 4.7% of India's total workforce had received formal skill training, compared to 52% in the United States, 80% in Japan, and 96% in South Korea. A National Skill Development Corporation (NSDC) skill gap study conducted…
28 September, 2022
Human resource development
White Fly White fly attacks on cotton have increased recently in a number of states, including Punjab and Rajasthan. What are the facts regarding the white fly? By eating on the underside of the leaf and dispersing illnesses like Cotton Leaf Curl Virus, whiteflies are a significant pest of cotton that reduce output. They consume the leaf sap and exude fluid onto the leaves, where a black fungus develops. This weakens the plant by interfering with photosynthesis, the process by which it produces food. Spread: The first invasive spiralling whitefly to be identified, Aleurodicus dispersus, is now found all over…
28 September, 2022
Agriculture
World Tourism Day and India’s status Every year on September 27, people all over the world celebrate World Tourism Day. This year, it will take place in Bali, Indonesia. “Rethinking Tourism” is the theme for 2022. ??????? What are the Main Ideas? Since 1980, September 27 has been observed as World Tourism Day. This date was selected to fall on the anniversary of the adoption of the United Nations World Tourism Organization (UNWTO) Statutes in 1970, a significant turning point in global tourism. The UNWTO is a specialised agency of the UN tasked with promoting ethical, sustainable, and easily accessible…
27 September, 2022
Tourism
Alliance for Asian Palm Oil The Asian Palm Oil Alliance (APOA) is made up of the top industry associations for the five biggest Asian importers of palm oil: India, Pakistan, Sri Lanka, Bangladesh, and Nepal. The APOA held its first general body meeting in conjunction with the Globoil Summit in Agra, India, and the following gathering is anticipated to take place in Indonesia in early 2023. One of the World's Leading Edible Oils and Agri Trade Conference, Exhibitions & Awards is the Globoil Summit. Additionally, Globoil India will celebrate its 25th anniversary in 2022. What is APOA? The APOA works…
26 September, 2022
Industry
Draft Indian Telecommunication Bill 2022 To control Internet-based OTT (Over-The-Top) telecom services, the Department of Telecommunications (DoT) recently announced the draught Indian Telecommunications 2022 Bill. ?????????????? What are the Draft Bill's Main Points? The Indian Telegraph Act, 1885, Indian Wireless Telegraphy Act, 1933, and The Telegraph Wires (Unlawful Protection) Act, 1950 are the three independent laws that now regulate the telecommunications industry. The proposed Bill consolidates these laws. Dilution of TRAI Authority: The DoT has also suggested to reduce the Telecom Regulatory Authority of India's (TRAI) authority when it comes to giving new licences to service providers. Regulation of OTT:…
26 September, 2022
Telecom sector
Shrinkflation Companies employ ‘shrinkflation’ as Inflation that continues to impact the buying power of consumers. About Shrinkflation: It refers to the tampering with a product while maintaining retail price It is when a product downsizes its quantity while keeping the price the same. For example, reducing the scoops of ice cream in a container or reducing the number of chips in a packet would count as shrinkflation. Cause: It occurs when materials or ingredients used to make products become more expensive and when there is intense competition in the market. As a result, instead of raising prices, they might just…
23 July, 2022
Terminology
Draft Indian Nutrition Rating (INR) The country's top food regulator, the Food Safety and Standards Authority of India (FSSAI), has published a draft regulation for front-of-pack labeling. Major Points This draft notification addresses front-of-pack labelling in an effort to deter customers from purchasing packaged foods that are heavy in sugar, salt, and fat. Indian Nutrition Rating (INR): According to the rule, pre-packaged goods must have a star design next to the brand name that ranges from 12 to 5. Food items are rated from 12 stars for the least healthy to 5 stars for the healthiest. Guidelines for Scoring Energy…
22 September, 2022
Food processing industry
Dharamshala Declaration 2022 & Tourism In India A recent three-day national tourist conference saw the introduction of the "Dharamshala Declaration 2022." Details about the news In the National Conference, the Center announced a comprehensive plan for the tourism industry. By 2024, tourism will have returned to its pre-pandemic level. $250 billion in GDP contribution by 2030, and By 2047, India will be the tourism powerhouse of the world. As per the Declaration of Dharamshala, by 2047, when the nation reaches 100, a long-term revenue target of $1 trillion is included. Travel Clubs: State governments were urged by the Union Minister…
22 September, 2022
Tourism
Hedge Fund A hedge fund is a limited partnership of private investors whose capital is managed by experienced fund managers. These managers employ a variety of tactics, such as borrowing money or trading in non-traditional assets, to generate returns on investments that are higher than average. Investment in hedge funds is frequently viewed as a dangerous alternative investment option since it typically has a high minimum investment requirement or net worth requirement and frequently targets wealthy clientele. Regulatory specifications There is no requirement for hedge funds in India except register with the Securities and Exchange Board of India. Several types…
21 September, 2022
Terminology
Ethereum Merger The second-most valued cryptocurrency in the world, Ethereum, just underwent a substantial software upgrade. About: Ethereum redesign: This process is referred to as "The Merge." It will do away with the requirement for cryptocurrency miners and massive mining farms, which previously powered the blockchain through a system known as "proof-of-work" (PoW). In its place, a "proof-of-stake" (PoS) mechanism has been adopted, which randomly selects "validators" to approve transactions in exchange for a modest payment. How it has operated thus far: Since Ethereum is a decentralized cryptocurrency, its network does not have organizations like banks approving transactions. Before, the…
21 September, 2022
Digital currency
PM Promotion of Alternate Nutrients for Agriculture Management (PRANAM) Yojana The Union government plans to implement a program called PM PRANAM to encourage states to use less chemical fertiliser. Important Points: The goal is to reduce the cost of subsidies for chemical fertilisers, which is projected to increase by 39% to Rs 2.25 lakh crore by 2022–23 from Rs 1.62 lakh crore in 2017. Vision: The action is consistent with the government's recent efforts to promote the balanced use of fertilisers or alternative fertilisers. Budget: The program won't have a separate budget; instead, it will be funded by savings from…
20 September, 2022
Government policies and interventions
National Logistics Policy 2022 The National Logistics Policy 2022 was just unveiled by the Prime Minister. Prime Directives Goal: To facilitate seamless cross-country flow of products and services while reducing high logistical costs, which are frequently cited as India's major structural trade bottlenecks. The logistics industry: Planning, coordinating, storing, and transferring resources—people, inventories, equipment, raw materials, etc.—from one place to another, from production points to consumption, distribution, or other production locations, are all included in logistics. Policy objectives: To measure the policy's success, it has straightforward but transformative objectives. By 2030, cut the cost of logistics from 14–18% of GDP…
20 September, 2022
Infrastructure
National Technical Textiles Mission Under the National Technical Textiles Mission, the Ministry of Textiles recently approved 23 key research projects costing roughly Rs 60 crores in Specialty Fibers, Sustainable Textiles, Geotextiles, Mobiltech, and Sports Textiles. Details about the news The research initiatives cost about 60 crores of rupees. 12 Specialty Fibers Projects with Applications in Agriculture, Smart Textiles, Healthcare, Strategic Application, and Protective Gears were Approved from Among These 23 Research Projects. Four sustainable textile projects with applications in the agricultural and healthcare sectors were approved. One project from Mobiltech, one from Sportech, and five projects from Geotextile were approved.…
20 September, 2022
Industry
Financial Stability and Development Council Image Source - India Education Dairy Recently, the Financial Stability and Development Council's 26th meeting was presided over by the Union Minister of Finance and Corporate Affairs (FSDC). What are the main points of discussion? The council placed a strong emphasis on issues such as improving the effectiveness of the current financial and credit information systems, early warning indicators for the economy and how prepared we are to deal with them, and governance and management concerns in systemically important financial institutions. It was underlined that the government and authorities must continuously evaluate the financial sector's…
17 September, 2022
Fiscal Policy
Windfall Tax The Ministry of Finance recently justified the windfall tax levied by the Center on domestic crude oil producers, claiming that it was not a last-minute decision but rather the result of extensive industry engagement. Image Source - clevernotes About Windfall tax It first appeared in 2022. Windfall taxes are made to tax any income a business makes as a result of an unforeseeable, external event, such as the increase in energy prices brought on by the conflict in Ukraine and Russia. These are gains that can't be directly linked to something the company actively did, like an investment plan…
15 September, 2022
Tax
World Dairy Summit 2022 and India’s Dairy Sector Recently, Prime Minister inaugurated the International Dairy Federation World Dairy Summit (IDF WDS) 2022 at India Expo Centre & Mart, Greater Noida. Image Source - Krishi Jagran International Dairy Federation is the leading source of scientific and technical expertise for all stakeholders of the dairy chain. Since 1903, IDF's network of dairy experts has provided a mechanism for the dairy sector to reach a global consensus on how to help feed the world with safe and sustainable dairy products. Principal High Points of the Summit Theme “Dairy for Nutrition and Livelihood”. Under…
14 September, 2022
Animal Husbandry
World Social Protection Report 2020–22 An Asia and the Pacific-focused study from the International Labour Organization (ILO) was just published. Major Points The report's content includes a global review of the strides made in the last ten years in extending social protection and constructing rights-based social protection systems, including floors, as well as information on the COVID-19 pandemic's effects. The report thus makes a crucial contribution to the framework for monitoring the 2030 Agenda for Sustainable Development. Worldwide perspective Deep-seated disparities and large gaps in social protection coverage, comprehensiveness, and sufficiency have been made clear by the pandemic in every…
07 September, 2022
Inclusive Growth
Nano Urea Fertiliser The Ministry of Chemicals and Fertilizers recently approved the use of Nano urea for commercial purposes. Image Source - Hindi Shobha About Nano Urea Fertiliser IFFCO created the liquid fertilizer known as nano urea. It serves as an alternative to regular urea. It is urea in the shape of a nanoparticle, essentially. An artificial source of nitrogen, a key nutrient needed by plants, urea is a chemical nitrogen fertilizer that is white in colour. Its objective is to lessen farmers' reliance on urea in bags. The 1985 Fertilizer Control Order (FCO): Is based on current regulations that,…
06 September, 2022
Agriculture
Digital Lending Image Source - Inc42 The Reserve Bank of India recently stated that regulated businesses providing credit through digital lending will have until November 30 to adhere to the lending standards for already-existing digital loans. About digital lending It entails financing through websites or mobile applications while utilizing technology for authentication and credit scoring. By utilizing current capabilities in traditional lending, banks have started their own independent digital lending platforms to enter the digital lending sector. Significance: Specifically in India's microenterprise and low-income consumer segments, financial inclusion aids in addressing the country's enormous unmet credit need. Reduce Informal Borrowing:…
05 September, 2022
Financial inclusion
India: fifth largest economy India recently overtook the UK to take over as the fifth-largest economy in the world. Image source - Indianexpress Important Points India overtook the UK to take over as the world's fifth-largest economy in the final quarter of 2021. India increased its lead in the first quarter of the computation, which is based on US dollars, according to IMF GDP data. India vs. the UK The nominal cash size of the Indian economy in the quarter through March was $854.7 billion on an adjusted basis and using the dollar exchange rate on the last day of the…
05 September, 2022
Economic Data
OTT Platforms Recently, a report was released by SBI Research, which said that the OTT (Over-The-Top) market is set to become a Rs 12,000-crore industry by 2023, up from Rs 2,590 crore in 2018. Findings The OTT market is anticipated to expand by 36% annually, from Rs 2,590 crore in 2018 to Rs 11,944 crore in 2023. With over 40 players and original media content available in all languages, OTT has already reduced the revenue and share of the entertainment business by 7-9%. It is also steadily expanding. In the country, there are already over 45 crore OTT users, and…
31 August, 2022
Government policies and interventions
Open Network for Digital Commerce or ONDC The Open Network for Digital Commerce's development has recently been assessed by the Union Minister of Commerce and Industry (ONDC). Highlights Background: Since the alpha debut in five cities in April 2022, ONDC has been doing end-to-end execution testing with a limited user group to better understand their needs. Target: In the upcoming weeks, ONDC anticipates a significant rise in the number of network participants to over 30. The network will thereafter begin to undergo restricted public beta testing by ONDC. The primary goal of ONDC is to help small, non-digital traders take…
02 September, 2022
eCommerce
Digital Economy In India Image Source - Inc42 A comprehensive legislative framework for the digital economy is being developed by the government. About digital economy The information and communications technology that enables the global network of economic activity, commercial transactions, and professional relationships is known as the "digital economy" (ICT). The economy based on digital technologies is a brief summary of it. The fourth industrial revolution The transition from the third to the fourth industrial revolution is reflected in the digital economy. The transition from analogue electronic and mechanical devices to digital technology, often known as the third industrial revolution…
30 August, 2022
eCommerce
The Economics of Road Safety Image Source - istock Recently, the minimum six-airbag requirement for cars that can accommodate up to eight passengers was declared by the Ministry of Road Transport and Highways. Recent Government steps: For the safety of the people, the government has demanded that all cars have six airbags as of October 1, 2022. Approximately 1,50,000 persons each year in India die in traffic accidents, with the 18–24 age group accounting for 60% of those fatalities. The GDP loss resulting from unintentional deaths in India would be in the neighbourhood of 3%.…
29 August, 2022
Road accident
One Nation One Fertilizer Image Source - MyGov It has been agreed to execute One Nation One Fertilizer by creating a "Single Brand for Fertilizers and Logo" under the fertilizer subsidy program known as the "Pradhanmantri Bhartiya Janurvarak Pariyojna," according to a statement from the Ministry of Chemicals and Fertilizers (PMBJP). About Beginning on October 2, 2022, the One Nation-One Fertilizer (ONOF) idea will be put into practice. Regardless of the manufacturer, all fertiliser bags, whether they contain urea, di-ammonium phosphate (DAP), muriate of potash (MOP), or NPK, will bear the brand names "Bharat Urea," "Bharat DAP," "Bharat MOP," and…
29 August, 2022
Government policies and interventions
Paddy Dwarfing Image Source - The Indian Express In Punjab and Haryana, a strange illness has struck the paddy crop, "dwarfing" the plants. The 'Southern Rice Black-Streaked Dwarf Virus' (SRBSDV), so named after Southern China, where it was initially discovered in 2001, has been identified as the mystery's cause by scientists. Paddy Dwarfing Rice dwarf disease is characterised by plant stunting and the formation of white chlorotic spots on the leaf. The height of the stunted plants was reduced from half to three-quarters of the height of the normal plants. These plants were simple to remove because of their shallow…
29 August, 2022
Agriculture
Abhijeet Sen Abhijit Sen, a well-known economist and former member of the Planning commission, just passed away. About Abhijeet Sen He served as a previous member of the Indian Planning Commission and was a well-known agricultural economist (from 2004 to 2014, PC disbanded in 2014). Prior to joining the Centre for Economic Studies and Planning at Jawaharlal Nehru University in 1985, he taught economics at Sussex, Oxford, Cambridge, and Essex. Principal Contributions: He was given the responsibility of recommending support prices for agricultural commodities when he was made head of the Commission on Agricultural Cost and Prices (CACP) in 1997.…
01 September, 2022
Others
Electronics Manufacturing in India Image Source - EFY Group A paper titled "Globalize to Localize: Exporting at Scale and Deepening the Ecosystem are Vital to Higher Domestic Value Addition" was recently released by the government. Highlights ICRIER (India Council for Research on International Economic Relations) and India Cellular and Electronics Association collaborated on the report's creation (ICEA) Significance: This study outlines India's strategy for the upcoming few years. It examines how India might reach its goals of $300 billion in electronics output and US$120 billion in…
01 September, 2022
Industry
GI Tag to Mithila Makhana/Foxnut The Union Government recently recognized Mithila Makhana in Bihar with the Geographical Indication (GI) Tag. The Mithilanchal Makhana Utpadak Sangh is the name under which the GI has been registered. Mithila Makhana and Bihar This is Bihar's fifth product to receive the GI Label. Prior to this, the Jardalu Mango from Bhagalpur, the Katarni Dhaan (rice), the Magahi Paan from Nawada, and the Shahi Litchi from Muzaffarpur all had the GI label. 80 per cent of India's supply of makhana, or fox nuts, is harvested in Bihar. What is Mithila Makhana? Botanical name Mithila Makhana…
24 August, 2022
GI Tag
Central Bank Digital Currency- UPSC According to a recent report, the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC) may be implemented gradually, starting with wholesale enterprises during the current fiscal year. Major Points The budgetary speech said that the CBDC would be introduced by the central bank in the 2022–23 fiscal year. The attitude of the RBI is that it has consistently opposed private digital currencies and has asked the government to extend the use of the paper rupee to encompass digital currency. In order to start a CBDC, RBI suggested changes to the Reserve Bank of…
24 August, 2022
Digital currency
CAROTAR, 2020 In a recent circular, the Central Board of Indirect Taxes and Customs (CBIC) advised customs officials to apply the CAROTAR (Customs Administration of Rules of Origin under Trade Agreements) Rules, 2020 with care and to ensure that their actions are consistent with the rules of any applicable trade agreements. In the event of a dispute between the revenue department and the importer, the exemptions outlined in a Free Trade Agreement (FTA) with regard to the nation of origin will take precedence. About The Ministry has instructed customs field agents to be cautious when implementing CAROTAR and to preserve…
22 August, 2022
Free trade agreement
Tilapia Aquaculture Project The Tilapia Aquaculture Project with Israeli Technology has received funding from the Technology Development Board (TDB), which was motivated by the Pradhan Mantri Matsya Sampada Yojana (PMMSY). The Ministry of Science and Technology is home to the Technology Development Board (TDB), a statutory organization. What is Aquaculture? Aquaculture is the managed process of raising aquatic organisms, especially those intended for human consumption. As per FAO of the United Nations claims aquaculture is the farming of aquatic animals like fish, molluscs, crabs, and plants. In order to increase productivity, farming usually involves some type of intervention, such as…
22 August, 2022
Fisheri
Privatization of Banks The RBI recently issued a warning that the big-bang privatisation of public sector banks could have a negative net impact. Findings Although public sector banks have performed better in fostering financial inclusion, private sector banks (PVBs) are more effective at maximising profits. Public sector banks (PSBs) have been essential in accelerating financial investments in low-carbon sectors and advancing the green transition in nations including Brazil, China, Germany, Japan, and the European Union. In contrast to private sector banks, PSBs were not solely driven by the goal of maximising profits and instead included the desirable goals of financial…
20 August, 2022
Banking
Emergency Credit Line Guarantee Scheme The Union Cabinet has agreed to raise the cap on the Emergency Credit Line Guarantee Scheme (ECLGS). About The cap has been raised from Rs. 4.5 billion to Rs. 5 billion. The additional funds are being set aside just for businesses in the hospitality industry and other associated industries through the scheme's expiration date of 31.03.2023. Due to the tremendous disruptions that the COVID-19 epidemic has produced for the hospitality industry and related businesses, there has been an upsurge. Impact of limit enhancement: It will give businesses much-needed relief and aid the hospitality sector’s comeback.…
19 August, 2022
Industry
5 years of the UDAN Government Scheme The Regional Connectivity Scheme UDAN (Ude Desh ka Aam Nagrik), the Ministry of Civil Aviation's flagship program, recently celebrated five successful years since the commencement of its inaugural flight in 2017. About UDAN Scheme It is the Ministry of Civil Aviation's flagship Regional Connectivity Scheme (MoCA). By adhering to the Ude Desh ka Aam Nagrik goal and providing improved aviation infrastructure and air connectivity in tier II and III cities, it seeks to satisfy the aspirations of the average person. The UDAN Scheme seeks to establish air transportation links between small and medium…
19 August, 2022
Airports
Northeast’s Integration From the very beginning of India's journey as an independent nation, the integration of Northeast India into mainstream Indian life has been a priority for the country. Background Except Tripura and Manipur, British Assam essentially encompassed the whole present-day Northeast. Although there was no Inner Line established in these kingdoms, the British nonetheless erected comparable administrative structures to divide the "excluded" highlands from the revenue plains. India's first administrative tool for the tribal zone of undivided Assam was the Sixth Schedule. The Schedules required the creation of Autonomous District Councils, wherein tribal customary rules were among the things…
17 August, 2022
Northeast development
National Intellectual Property Awareness Mission (NIPAM) The National Intellectual Property Understanding Mission (NIPAM), which was established in 2021, has succeeded in reaching its goal of providing 1 million students with fundamental training and awareness of intellectual property (IP). The goal was accomplished before the deadline, which was the 15th of August 2022. About NIPAM: A million children are expected to learn about intellectual property and their rights thanks to a pan-Indian mission. It aims to ignite and motivate college/university students to develop and preserve their creations, as well as to instil the spirit of creativity and innovation in students in…
16 August, 2022
IPR (Intellectual Property Rights)
Essential Commodities Act of 1955 The Essential Commodities Act of 1955 has recently been used by the Ministry of Consumer Affairs, Food, and Public Distribution to stop the rise in tur dal prices. States and Union Territories are required to give weekly instructions to "stockholder entities to submit the data of the stocks held by them" to a Department of Consumer Affairs online monitoring portal. Why Invoking the Act? Due to excessive rainfall and water logging conditions in some areas of the key Tur-growing states of Karnataka, Maharashtra, and Madhya Pradesh, Tur prices have increased since mid-July 2022, but Kharif…
16 August, 2022
Government policies and interventions
India - UK Relations According to Britain Meets India (BMI) Report by Grant Thortan Bharat in collaboration with The Confederation of Indian Industry, trade between India and the UK is expected to double by 2030 as a result of the proposed free trade agreement, investments in technology, diversification of global supply chains, and ease of doing business (CII). The top industry that UK firms are looking to invest in India is business services, with Maharashtra being the top state for investment followed by the National Capital Region and Karnataka. About Proposed Free Trade Agreement The proposed FTA is anticipated to…
16 August, 2022
Free trade agreement
Global Employment Trends for Youth: ILO A report titled "Global Employment Trends for Youth 2022: Investing in transforming futures for young people" was just released by the International Labour Organization (ILO). Findings related to India: Youth Employment Decline: Compared to its value is 2020, the youth employment participation rate fell by 0.9% over the first nine months of 2021, while it rose by 2% for adults over the same period. For extremely young people between the ages of 15 and 20, the situation is particularly dire. Low Young Female Employment: In 2021 and 2022, young women in India lost more…
15 August, 2022
Unemployment
Digital Currency Over 7% of India's population possessed digital currency in 2021, according to a recent report by the United Nations Trade and Development Body (UNCTAD). Additionally, India was rated eighth in terms of population ownership of digital currencies among the top 20 economies worldwide. Image Source - Techcabal HIGHLIGHT When it comes to the percentage of the population that owns cryptocurrency, developing nations made up 15 of the top 20 economies. On the list, Ukraine came in first, followed by Russia, Venezuela, Singapore, Kenya, and the United States. During the Covid-19 pandemic, cryptocurrency use multiplied globally, particularly in developing…
13 August, 2022
Digital currency
Ethanol Plants The Indian government declared on World Biofuel Day 2022, 10 August, that a second generation (2G) ethanol facility would be built at the Indian Oil Corporation's refinery in Haryana. Image Source - Regreen excel This ethanol plant will provide more money and green fuel while also assisting in the reduction of air pollution in the Delhi and NCR areas. About Ethanol Plant By using around 2 lakh tonnes of rice straw (parali) annually to produce roughly 3 crore liters of ethanol, it will support India's waste-to-wealth initiatives. In addition to paddy straw, this plant will also use trash…
12 August, 2022
Energy
Gold Exchange Traded Funds As part of their portfolio rebalancing strategy, investors pulled money out of gold Exchange Traded Funds (ETFs) in July 2022, resulting in a net outflow of Rs 457 crore. Image Source - Finology Comparatively, in June 2022 there had been a net inflow of Rs 135 crore. About Gold Exchange Traded Funds Gold ETFs are passive investment products that are based on gold prices and invest in gold bullion with the goal of tracking the domestic physical gold price. Gold ETFs are securities that track actual gold, which may be in the form of paper or…
11 August, 2022
Stock market
India’s Tourism industry In 2024, India's outbound tourism will exceed USD 42 billion, according to a report recently published under the title "Outbound Travel and Tourism - An Opportunity Untapped.", released by Nangia Andersen LLP in association with FICCI. Image Source - Sbnri Travelling "outside" of one's native country for tourism purposes is known as outbound tourism. Finding of the report The paper examines the rapidly developing Indian tourism industry and presents a plan for giving visitors and travellers from India more for their money. Potential: By 2024, Indian outbound travel will exceed 42 billion USD. Twenty per cent of…
10 August, 2022
Tourism
Food Processing Sector The government's recent efforts to help the food processing sector were recently detailed in a written response to the Rajya Sabha Minister of State (Food Processing Industries). Present status of the food sector in India A type of manufacturing called food processing uses science and technology to transform raw ingredients into intermediate foods or edible products. A range of methods are used to transform bulky, perishable, and occasionally inedible food resources into more palatable, concentrated, shelf-stable meals or beverages. It enhances the end product's ability to be stored, transported, enjoyed, and conveniently used. Relevance: The Indian food…
10 August, 2022
Food processing industry
Governing Telecommunication in India The Ministry of Communication, Department of Telecommunications (DoT) recently issued an invitation for comments regarding the requirement to update the legal framework governing the telecom sector. It also published a consultation document in which it advocated for the creation of a new legal framework that is precise, understandable, and responsive to the development of new technologies and social norms. Need for a New Framework Long before India gained independence, regulations were passed that established the legal framework for telecommunications in that country. Since the Indian Telegraph Act took effect on October 1, 1885, technology has made…
08 August, 2022
Telecom sector
NATIONAL FOOD SECURITY ACT: EXPLAINED The National Food Security Act (NFSA) beneficiaries numbering 70 lakh have recently been discovered by the Union government to be questionable. Key Points Nearly 70 lakh beneficiaries were recently identified as suspects following a similar process, and the data has now once again been forwarded to the relevant states for on-the-ground verification. States removed or cancelled 4.74 crore ration cards between 2013 and 2021. This would mean that 19 crore beneficiaries would have been removed and replaced with new beneficiaries. The biggest number of the 4.74 crore ration cards deleted/cancelled, 1.73 crores, was in Uttar…
08 August, 2022
Food security
UDYAM PORTAL According to the Union Minister of Micro, Small, and Medium Enterprises, over one crore Micro, Small, and Medium Enterprises (MSMEs) have registered on the Udyam portal in the past 25 months. What is the Udyam portal?? It was introduced on July 1st, 2020. The Union MSME ministry introduced an online mechanism for registering MSMEs. Additionally, it is connected to the databases of the Goods and Services Tax Network and the Central Board of Direct Taxes (CBDT). A channel of communication and engagement between taxpayers, the federal government, several state governments, and other stakeholders is established via the complex…
05 August, 2022
MSME
London Interbank Offered Rate (LIBOR) (LIBOR) rose for the fourth straight session, rising roughly 2.5 basis points to 2.83229%, the highest since November 2008. What Is London Interbank Offered Rate (LIBOR)? It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It acts as a well-recognized important benchmark interest rate that represents the cost of borrowing for banks. It is administered by the Intercontinental Exchange, which queries the biggest international banks about the short-term borrowing rates, which they would impose on other banks. Rate calculation: The Waterfall…
05 August, 2022
Banking
FINANCIAL INCLUSION INDEX The Composite Financial Inclusion Index (FI-Index) for the year ended March 31, 2022, has been made public by the Reserve Bank of India. It has improved to 56.4 in March 2022 vis-à-vis 53.9 in March 2021, with growth witnessed across all the sub-indices. The improvement has been seen across all its sub-indices Access, Usage, and Equality. The index is published annually in July. About financial index The RBI created the composite financial inclusion index, which includes information on the banking, investments, insurance, postal, and pension sectors, to measure the level of financial inclusion across the nation. The…
05 August, 2022
Financial inclusion
AFRICAN SWINE FEVER The disease has been confirmed on a private pig farm at Kanichar grama panchayat in Kannur. This was first reported in November 2019 from the area of China bordering Arunachal Pradesh. About African swine fever is a highly contagious and fatal animal disease that infects and leads to an acute form of hemorrhagic fever in domestic and wild pigs. Other symptoms of the disease include high fever, depression, anorexia, loss of appetite, haemorrhages in the skin, vomiting, and diarrhoea among others. History It was first detected in Africa in the 1920s. Historically outbreaks have been reported…
02 August, 2022
Animal Husbandry
Myanmar/Malaysia-India-Singapore Transit (MIST) Submarine Cable System The union environment ministry’s expert appraisal committee (EAC) on Coastal Regulation Zone (CRZ) has given its go-ahead for the construction of an 8,100km-long undersea, transnational fiber optic cable system connecting Mumbai to Singapore, via Chennai. About MIST cable It is an international submarine cable communication network that will traverse undersea to connect India with various other countries such as Myanmar, Thailand, Malaysia, and Singapore. It will also boost telecom connectivity between India and other Asian countries, namely Myanmar, Thailand, Malaysia, and Singapore Its aim is to provide secure, reliable, robust, and affordable telecom facilities…
01 August, 2022
Telecom sector
Hybrid electric vehicles (HEV): Explained Automakers like Maruti, Toyota, and Honda have launched more hybrid electric vehicles in India. What is a hybrid electric vehicle? A hybrid electric vehicle uses an Internal Combustion engine ICE (a petrol/diesel) and one or more electric motors to run. It is powered by the electric motor alone, which uses energy stored in batteries by the ICE or both. In addition to the internal combustion engine, they also have an electric motor and a battery. The HEV is more complex as it has electric vehicle (EV) components and a conventional ICE (the cars we use…
01 August, 2022
Renewable energy
INDIA'S FIRST BULLION EXCHANGE The Prime Minister recently launched India's first international bullion exchange - India International Bullion Exchange (IIBX)- in Gujarat. The bullion exchange was launched at the International Financial Services Centre (IFSC) GIFT City in Gandhinagar, Gujarat. Bullion refers to physical gold and silver of high purity often kept in the form of bars, ingots, or coins. It can be considered legal tender and is often held as reserves by central banks or held by institutional investors. IIBX The National Stock Exchange, Multi Commodity Exchange, India INX International Exchange, National Securities Depository, and Central Depository Services Ltd…
30 July, 2022
Financial Market
11th Agriculture Census The Eleventh Agricultural Census (2021-22) was launched recently. It will bring huge benefits to an agricultural country like India. About agriculture census It is a statistical operation for collecting, processing, and disseminating data on the structure of agriculture by covering the whole or a significant part of the country. It is conducted every 5 years, which is being undertaken now after a delay due to the Covid - 19 Pandemic. The Census is the main source of information on a variety of agricultural parameters at a relatively minute level, such as the number and area of operational…
30 July, 2022
Agriculture
INDIAN CORE SECTOR AND IIP The growth of eight core infrastructure sectors rose by 12.7% in June against 9.4% in the year-ago, period with all sectors except crude oil registering an uptick in production. What are the Core Sector Industries? The eight-core sector industries include coal, crude oil, natural gas, refinery products, fertilizer, steel, cement, and electricity. All these core industries are considered as main or key industries of the economy and serve as the backbone of all other industries The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement>…
30 July, 2022
Industry
GI Tag to White Onion Alibag’s white onion gets GI tagged, to benefit farmers as white onion will get the premium price. About white onion With its picturesque beaches, Alibag, in the Raigad district of Maharashtra, is one of the popular tourist spots. This historic place will now be recognized for Geographical Indication (GI) tagged white onion. The GI for this onion, characterized by its sweetness, has been accepted. The GI tag gives a unique identity to the white onion, which has medicinal qualities and is being cultivated in a traditional way for a long time. Farmers will directly get…
28 July, 2022
GI Tag
LUMPY SKIN DISEASE More than 1,500 animals, mainly cows, and buffaloes have died in Gujarat due to the infectious lumpy skin disease, and it has also been spread to 14 districts of the State. About lumpy skin disease Lumpy skin disease is a viral disease that mainly affects cattle. It is transmitted by blood-feeding insects, such as certain species of flies and mosquitoes, or ticks. The virus is one of the three closely related species within the genus capripoxvirus, the other two species are the Sheeppox virus and Goatpox virus Due to its infectious nature and its significant implications on…
26 July, 2022
Animal Husbandry
JAWAHARLAL NEHRU PORT Jawaharlal Nehru Port has become the first major port of the country to become a 100% Landlord port having all berths being operated on a public-private partnership model. About The PPP mode of investment in Indian ports has made remarkable progress in the last 25 years, mainly beginning with the Jawaharlal Nehru Port which is resulting in capacity addition and productivity improvement. PPP is considered an effective mechanism for attracting investment in the port sector. Until now 86 projects worth Rs. 55,000 Crores have been granted approval under the PPP model. The key projects on PPP…
25 July, 2022
Ports
WINDFALL TAX The Indian government has cut the recently imposed cesses and levies on diesel and aviation turbine fuel (ATF) and removed the cess on exports of petrol due to softening in crude oil prices, amid fears of a global recession. About windfall tax A Windfall tax is imposed by a government against certain industries when they experience above-average profits due to economic conditions. India imposed windfall taxes on 1 July, following the super normal profits of energy companies. Reduction in taxes Additional excise duties equal to 6 rupees per liter on exports of petrol have been removed. Duties on…
23 July, 2022
Tax
TARANGA HILL-AMBAJI-ABU ROAD Cabinet Committee on Economic Affairs has approved the construction of the Taranga Hill-Ambaji- Abu Road new rail line which is to be constructed by the Ministry of Railways at an estimated cost of Rs 2798.16 crore. The total length of the new rail line will be 116.65 km and is expected to be completed by 2026-27 The route will go via Rajasthan's Sirohi district, as well as Gujarat's Banaskantha and Mahesana districts. Significance of the project It would enhance connectivity and improve mobility leading to the overall socio-economic development of that region.? As it connects the…
22 July, 2022
Infrastructure
STEP TO BOOST FOREX INFLOW Recently, the Reserve Bank of India (RBI) has undertaken measures to increase forex inflows, amid the depreciation of the Indian rupee. Why has the RBI taken Measures to Boost the Forex reserve? Indian Rupee has depreciated 4.1 % to 79.30 against the US dollar in the current financial year (FY 2022-23) amid ongoing geopolitical tension. Foreign Portfolio Investors (FPIs) have moved out Rs 2.32 lakh crore in six months from the Indian market. India's forex reserves, over the last 9 months, have declined by USD 50 billion to USD 593.3 billion. What is a Forex…
19 July, 2022
Rupee Depreciating
FOREX RESERVE AND RUPEE’S EXCHANGE RATE Recently, there has been a fall in the rupee’s exchange rate (nearing 80 to a US Dollar), as well as a fall in the forex reserves. The relationship between the forex reserve and rupee exchange rate is: Exchange rate: It is the price of one currency in terms of another currency. Exchange rates can be either fixed or it can be floating. Fixed exchange rates are decided by the central banks of a country. Floating exchange rates are determined by the mechanism of market demand and supply. Rupee’s exchange rate: In the beginning, for every…
11 July, 2022
Forex
The Problem of Thermal Power Plants and Third Generation Coal Reforms India’s power demand touched a record high of 211MW even as the coal shortage continued with coal stock available only for eight days. The ongoing high coal prices are set to increase the input prices for independent power producers and power distribution companies. To bridge the gap between shortage in domestic supply and increase demand, power generating companies were directed to use imported coal for 10% of their requirement. How did India get here? India is the second-largest producer of coal with a reserve that could last up to…
08 May, 2022
Coal policy
INTERNATIONAL MSME DAY International MSME Day is celebrated every year on the 27th of June throughout the world to highlight the importance of MSMEs and their crucial role in being the backbone of the country’s economy. KEY POINTS The United Nations designated 27th June as Micro, Small, and Medium-sized Enterprises Day through a resolution passed in the United Nations General Assembly in April 2017. In May 2017, a program titled 'Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the Sustainable Development Goals (SDGs)' in Developing Countries was also launched. The program has been funded by the 2030 Agenda for…
27 June, 2022
MSME
INDIA'S GIG ECONOMY: NITI AAYOG REPORT The NITI Aayog has released the report titled India's Booming Gig and Platform Economy. Gig economy In a gig economy, temporary, flexible jobs are on-trend and companies tend to hire independent contractors and freelancers instead of full-time employees. The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and the demand for flexible lifestyles, where one can focus on personal and professional life without sticking to strict 9 to 5 job conditions. Gig workers mainly engage in livelihoods outside the traditional employer-employee arrangement. Classification…
28 June, 2022
Government policies and interventions
INDIA'S IMPORTS FROM RUSSIA INCREASED AMID SANCTION Amid international sanctions imposed against Russia after its invasion of Ukraine, India’s imports from Russia have increased rapidly. India’s crude oil imports from Russia surged by 286% while coal imports increased by over 345% in the January-April 2022 period. Russia is now among the top 10 suppliers of crude oil to India. Russian oil now makes up to ten per cent of India’s oil import basket.
28 June, 2022
Oil diplomacy
AMENDMENT TO INSOLVENCY AND BANKRUPTCY BOARD OF INDIA REGULATION 2017 The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Inspection and Investigation) Regulations 2017. Insolvency and bankruptcy board which is related to grievances and complaint handling procedure provides a mechanism for restitution of complaints and grievances filed against insolvency professionals, insolvency professional agencies, and information utilities. Insolvency and bankruptcy board which is related to inspection and investigation regulation 2017 provides a mechanism for carrying out…
18 June, 2022
Banking
BENEFITS OF RICE FORTIFICATION Center to boost the supply of fortified rice started the second phase of the distribution of fortified rice from April 1. Its main aim is to supply fortified rice to beneficiaries of the Integrated Child Development Services (ICDS) and the Pradhan Mantra Poshan Shakti Nirman (PM-POSHAN) Scheme. Food cooperation of India had procured about 90 lakh tonnes of fortified rice and about 2.2lakh tonnes had been supplied to 90 districts in 16 states. Rice fortification is a centrally sponsored pilot scheme for the fortification of rice and its distribution under the public distribution system for 3…
15 June, 2022
Food security
Saffron is a plant whose dried stigmas (thread-like parts of the flower) are used to make saffron spice. Saffron cultivation is believed to have been introduced in Kashmir by Central Asian immigrants around the 1st Century BCE. Pampore region, in India, commonly known as Saffron bowl of Kashmir, is the main contributor to saffron production, followed by Budgam, Srinagar, and Kishtiwar districts. Saffron has traditionally been associated with the famous Kashmiri cuisine. It’s its medicinal values were considered as part of the rich cultural heritage of Kashmir. As saffron growing was confined to very specific areas in Kashmir, its production…
03 February, 2022
Cropping patterns in various parts of India
Dr V Anantha Nageswaran: New Chief Economic Advisor About Chief Economic Advisor The Chief Economic Adviser (CEA) is a post in the Government of India and is equivalent to the rank of Secretary to the Government of India. The CEA is head of the Economic Division of the Department of Economic Affairs, Ministry of Finance, Government of India. The CEA is the ex-officio cadre controlling authority of the Indian Economic Service. Until 2009, the CEA’s position was a Union Public Service Commission appointment and until the 1970s almost all CEAs were members of the Indian Economic Service. Role of a…
29 January, 2022
Terminology
Payment Banks and Small Finance Banks Payment Banks Provides small savings and current accounts < 1 lakh, Mutual Funds, Insurance products, and remittances to workers. They are differentiated or restricted banks. It was announced in Union Budget 2014-2015. It was based on the recommendations of the Nachiket Mor Committee on Financial Inclusion. They cannot lend and cannot set up subsidiaries to undertake Non-banking Financial services (NBFS) (lease, hire purchase). They are bound to meet CRR and 75% SLR and 25% in current and time/fixed deposits with other SCBs. They can become a Banking Correspondent for another bank for credit and services…
19 January, 2022
Banking
DPIIT-Dept for Promotion of Industry & Internal Trade Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industries DIPP was established in 1995 and reconstituted in 2000 with the merger of the Dept of Industrial Development. It was renamed in 2019. The following are the Functions of DPIIT e-Commerce matters that were transferred to DPIIT in 2018. In 2019: internal trade, the welfare of traders and their employees and Startups. Formulate and implement industrial policy and strategies for industrial development. Monitor industrial growth, the performance of industries and advice on all industrial and technical matters. Formulate FDI policy and investment by NRIs. Promote, approve and facilitation…
08 January, 2022
Industry
SAAR program As a part of Azadi Ka Amrut Mahotsav, Smart Cities Mission, MoHUA has launched the “Smart cities and Academia Towards Action & Research (SAAR)” program, a joint initiative of MoHUA, National Institute of Urban Affairs (NIUA) and leading Indian academic institutions of the country. Under the program, 15 premier architecture & planning institutes of the country will be working with Smart Cities to document landmark projects undertaken by the Smart Cities Mission. The documents will capture the learnings from best practices, provide opportunities for engagement on urban development projects to students, and enable real-time information flow between urban practitioners…
06 January, 2022
Housing sector
National Educational Alliance for Technology (NEAT)3.0 What is National Educational Alliance for Technology (NEAT) 3.0? National Educational Alliance for Technology (NEAT) is an initiative to provide the use of best-developed technological solutions in the education sector to enhance the employability of the youth on a single platform for learners' convenience. These solutions use Artificial Intelligence for a personalized and customized learning experience for better learning outcomes and skill development in the niche areas. AICTE, MoE is acting as the facilitator in the process while ensuring that the solutions are freely available to a large number of socially and economically backward…
04 January, 2022
Education
‘Padhe Bharat’: 100 days reading campaign What is the ‘Padhe Bharat’ campaign? Padhe Bharat is a 100 Days Reading Campaign which is in alignment with the National Education Policy (NEP) 2020. It emphasises on the promotion of joyful reading culture for children by ensuring the availability of age-appropriate reading books for children in local/mother tongue/regional/tribal Language. There is a need to create an enabling environment in which students read for pleasure and develop their skills through a process that is enjoyable and sustainable and which remains with them for life. Why is reading important for children? Reading is the foundation of…
02 January, 2022
Education
Consumer Protection Rules, 2021 Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 1) Pecuniary Jurisdiction The Consumer Protection Act, 2019 The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state commissions and national commissions. The Act also stipulates the pecuniary jurisdiction of each tier of consumer commission. As per the existing provisions of the Act, District Commissions have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed one crore rupees. State Commissions have jurisdiction…
31 December, 2021
eCommerce
National Livestock Mission (NLM) About National Livestock Mission (NLM) The National Livestock Mission (NLM) scheme is being implemented in the country since 2014. The scheme has been realigned during 2021-22. The salient features of realigned National Livestock Mission (NLM) scheme are employment generation, entrepreneurship development, increase in per animal productivity and thus targeting increased production of meat, goat milk, egg and wool. The objectives of the National Livestock Mission are: Employment generation through entrepreneurship development in small ruminant, poultry, piggery and Fodder sector. Increase per animal productivity through breed improvement Increase in production of meat, egg, goat milk, wool and…
15 December, 2021
Allied agriculture activities
Sector Skill Councils What are Sector Skill Councils? Since its inception, one of the major pillars of NSDC’s strength is Sector Skill Councils (SSCs), which play a vital role in bridging the gap between what the industry demands and what the skilling requirements ought to be. The National Occupational Standard is one of the most significant contributions of NSDC to India's skilling ecosystem - something that was made possible by the SSCs, which are national partner organizations that bring together all the stakeholders - industry, labour and academia. The SSCs operate as an autonomous body and could be registered as…
15 December, 2021
Human resource development
Regional Rapid Transit System (RRTS) What is Regional Rapid Transit System (RRTS)? The national capital region (NCR) is a multi-state region with the National Capital as its centre. This region, spread over an area of about 35,000 km2, comprises the entire National Capital Territory of Delhi and some parts of the neighbouring states of Haryana, Uttar Pradesh and Rajasthan. The National Capital Region Planning Board (NCRPB), in order to enhance the connectivity within the NCR, has proposed to connect urban, industrial (SEZs/industrial parks), regional and sub-regional centres through a fast rail-based Regional Rapid Transit System (RRTS). The objective of this…
14 December, 2021
Railways
AMRUT Mission Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). But, in a significant departure from the earlier mission, the Centre will not appraise individual projects. The Mission will focus on the following Thrust Areas: Water Supply. Sewerage and septage management. Storm Water Drainage to reduce flooding Non-motorized Urban Transport. Green space/parks. Five hundred cities have been selected under AMRUT. The category of cities that have been selected under AMRUT is given below: All Cities and Towns with a population of over one lakh with notified Municipalities…
14 December, 2021
Infrastructure
SAMPANN Project SAMPANN – ‘System for Accounting and Management of Pension’ is an ambitious project of the Government of India being implemented by the Controller General of Communication Accounts, Department of Telecommunications, Ministry of Communications. It was dedicated to the nation by Prime Minister Shri Narendra Modi on 29th December 2018. It is a seamless online pension processing and payment system for Department of Telecommunications pensioners. It provides direct credit of pension into the bank accounts of pensioners. The system has helped the Department in faster settlement of pension cases, improved reconciliation/auditing and ease of accounting. SAMPANN has also been instrumental…
10 December, 2021
Economic reforms
About PM Khanij Kshetriya Kalyan Yojana (PMKKKY), 2015 PMKKVY was launched to provide for the welfare of areas & people affected by mining areas. PMKKKY is implemented by the District Mineral Foundations (DMFs) of the respective districts using the funds accruing to the DMF from miners. The overall objectives of the PMKKKY scheme are: To implement various developmental and welfare projects/programs in mining-affected areas. These projects/ programs will be complementing the existing ongoing schemes/projects of State and Central governments; To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and To ensure long-term…
09 December, 2021
Mine and minerals
ATMA Scheme in Agriculture Centrally Sponsored Scheme ‘Support to State Extension Programs for Extension Reforms” popularly known as ATMA Scheme in agriculture is under implemented since 2005. Presently, the ATMA Scheme is being implemented in 691 districts of 28 states & 5 UTs in the country. The ATMA scheme promotes a decentralized farmer-friendly extension system in the country. The objectives of the Scheme is to support State Government’s efforts and to make available the latest agricultural technologies and good agricultural practices in different thematic areas of agriculture and allied areas to farmers through different extension activities viz; Farmers Training, Demonstrations, Exposure Visits,…
08 December, 2021
Agriculture
National Food Security Mission (NFSM) Tenure: Launched in 2007 (11th Five Year Plan) for additional production of rice, wheat and pulses. The National Food Security Mission (NFSM) aims at increasing the production of rice, wheat, pulses, coarse cereals and Nutri-cereals through area expansion and productivity enhancement in the identified districts of the country; improving soil fertility, farm level productivity besides, transfer of technology through demonstrations and training, incentives on critical inputs like quality seeds, water saving devices, farm equipment and machinery etc. Ministry: MoAFW Funding: Centrally Sponsored Scheme. 60:40 General Category States and 90:10 for NE and Hilly States. However, the Central…
08 December, 2021
Food security
ASEEM Portal: Aatmanirbhar Skilled Employees Employer About ASEEM Portal Ministry of Skill Development and Entrepreneurship has launched the Aatmanirbhar Skilled Employees Employer Mapping (ASEEM) portal, which acts as a directory of the skilled workforce. The objective is to provide a platform that matches the supply of skilled workforce with the market demand, thereby facilitating better livelihood opportunities for youth and the availability of ready skilled manpower to employers. ASEEM portal is being managed by National Skill Development Corporation (NSDC) under the aegis of the Ministry. As of 16.07.2021, 1.3 crore candidates have been registered on the ASEEM portal which includes directly…
07 December, 2021
Aatmnirbhar Bharat
Make in Northeast Initiative Under the DPIIT, Ministry of Commerce and Industry, a dedicated Northeast Desk has been set up within Invest India, which supports the North East States in their outreach activities to the investors as well as in facilitating and handholding select companies. The desk is working closely with One District One Product (ODOP), StartUP and other sector desks of Invest India for their initiatives in the region. The Invest Northeast Portal, presenting investment opportunities in the region across sectors and States to both domestic and foreign investors, has also been developed. Invest India It is a non…
07 December, 2021
Northeast development
PM MITRA Parks for Textile sector With a view to attracting investment, boost employment generation and positioning itself strongly in the global textile market, the Government has approved the setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites including plug and play facility with an outlay of Rs. 4445 cr for a period of seven years upto 2027-28. The salient features of the PM MITRA Scheme are:- Willing state governments to have ready availability of contiguous and encumbrance-free land parcel of 1000+ acres for being eligible. It is envisaged to be…
02 December, 2021
Industry
National Wind-Solar Hybrid Policy The Ministry of New and Renewable Energy issued the National Wind-Solar Hybrid Policy on 14th May 2018. The main objective of the National Wind Solar Hybrid Policy is to provide a framework for the promotion of large grid-connected wind-solar PV hybrid systems for optimal and efficient utilization of wind and solar resources, transmission infrastructure and land. A scheme for setting up of 2500 MW Inter-State Transmission System (ISTS) connected wind solar hybrid projects was sanctioned on 25.05.2018. In order to promote hybrid renewable energy technologies, Solar Energy Corporation of India Ltd. (SECI) has brought out tenders, viz.…
01 December, 2021
Renewable energy
Changes in the Prompt Corrective Action norms for banks Context: This topic is important for UPSE GS Paper 3. What will commercial banks under scrutiny need to do to get out of the restrictions imposed by the central bank? The story so far: The RBI issued a notification on November 2 revising norms for commercial banks to be placed under the regulator’s Prompt Corrective Action (PCA) framework should any of their key metrics fall out of line. The revision takes effect from January 1, 2022. What is the purpose of the PCA framework? In the RBI’s own words, “The objective…
07 November, 2021
Banking
How to promote Renewable Energy Sources in India? At present, the Government has set a target for achieving 175 GW of Renewable Energy capacity by the year 2022. A total of 150 GW of renewable energy capacity (including large hydro) has been installed in the country to date. Further, projects of 63.64 GW capacity are under various stages of implementation and 32.06 GW capacity are under various stages of bidding. Therefore, a total of 245.70 GW capacity has either been installed or under various stages of implementation /bidding. The Government has taken several steps to promote renewable energy sources in…
01 December, 2021
Renewable energy
National Investment and Manufacturing Zones (NIMZ) About NIMZ The Government of India (GoI) has announced a National Manufacturing Policy, 2011, with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. NIMZs are one of the important instruments to achieve it. As per the Policy, “NIMZs will be developed as integrated industrial townships with state-of-the-art infrastructure and land use on the basis of zoning; clean and energy-efficient technology; necessary social infrastructure; skill development facilities, etc.” At least 30% of the total land area proposed for the NIMZ will be utilized for the…
28 November, 2021
Industry
International Financial Services Centre (IFSC) What is an International Financial Services Centre (IFSC)? An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders. London, New York and Singapore can be counted as global financial centres. The SEZ Act 2005 allows setting up an IFSC in an SEZ or as an SEZ after approval from the central government. History of IFSC An expert panel headed by former World Bank economist Percy Mistry submitted a report on making Mumbai an international financial centre in 2007. However, the global financial crisis that unfolded in 2008…
30 December, 2021
Industry
Long Range Bomb (LRB) Defence Research and Development Organisation (DRDO) and Indian Air Force (IAF) team jointly flight tested indigenously developed Long-Range Bomb (LRB) successfully from an aerial platform on October 29, 2021. The LR Bomb, after release from the IAF fighter aircraft, guided to a land-based target at a long range with accuracy within specified limits. The flight of the bomb and its performance were monitored by a number of range sensors including Electro-Optical Tracking System (EOTS), Telemetry and radar deployed by the Integrated Test Range, Chandipur in Odisha. The LR Bomb has been designed and developed by Research…
29 October, 2021
Defense industry
What is Krishi UDAN 2.0 Scheme? Krishi UDAN 2.0 lays out the vision of improving value realization through better integration and optimization of Agri-harvesting and air transportation and contributing to Agri-value chain sustainability and resilience under different and dynamic conditions. The scheme proposes facilitating and incentivizing the movement of Agri-produce by air transportation. We are adopting the model of A2A – Agriculture to Aviation. The convergence between the two sectors is possible because of 3 primary reasons – Evolutionary possible use of biofuel for aircraft in future, Use of drones in the agriculture sector, and Due to greater integration and…
03 December, 2021
Agriculture
Akash Prime Missile A new version of the Akash Missile – ‘Akash Prime’ has been successfully flighting tested from Integrated Test Range (ITR), Chandipur. The missile intercepted and destroyed an unmanned aerial target mimicking enemy aircraft, in its maiden flight test after improvements. In comparison to the existing Akash System, Akash Prime is equipped with an indigenous active Radio Frequency (RF) seeker for improved accuracy. Other improvements also ensure more reliable performance under low-temperature environments at higher altitudes. A modified ground system of the existing Akash weapon system has been used for the current flight test. The range stations of…
28 September, 2021
Defense industry
Need for Saubhagya Scheme: Introduction Access to electricity definitely has a positive impact on the quality of life of people in all aspects of daily household chores and human development. Firstly , Access to electricity would substitute use of Kerosene for lighting purposes resulting in reduction in indoor pollution thereby saving people from health hazards. Further, electricity access would help in establishing efficient and modern health services in all parts of the country. Lighting after the sunset also provide a sense of enhanced personal safety especially for women and increase in post sunset social as well as economic activities. Availability…
26 September, 2021
Energy
Coir Industry in India Coir Industry Coir Board was set up under the Coir Industry Act, 1953 by the Government of India for the overall sustainable development of coir industry in the Country. The functions of the Board as laid down under the Act include undertaking, assisting and encouraging scientific, technological and economic research, modernization, quality improvement, human resource development, market promotion and welfare of all those who are engaged in this industry. The Head Quarters of the Board is located at Coir House, M.G. Road, Kochi, Kerala and is running 48 establishments including 29 marketing outlets across the country.…
26 September, 2021
Industry
K Kasturirangan panel for National Curriculum Framework (NCF) The Centre has started the process to revise school textbooks by appointing former Indian Space Research Organisation (ISRO) chairman K. Kasturirangan as the head of a 12-member steering committee responsible for developing a new National Curriculum Framework (NCF). Dr. Kasturirangan also chaired the drafting committee for the National Education Policy, 2020 which recommended the development of a new NCF. The steering committee has been given a tenure of three years to complete its task. The last such framework was developed in 2005. It is meant to be a guiding document for the…
22 September, 2021
Education
What is Adjusted Gross Revenue (AGR)? Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT). It is divided into spectrum usage charges and licensing fees, pegged between 3-5 % and 8 % respectively. As per DoT, the charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales. Telcos, on their part, insist that AGR should comprise only the revenues generated from telecom services. What is the issue of Adjusted Gross Revenue (AGR) of Telcoms? The…
16 September, 2021
Telecom sector
India and Singapore to link UPI and PayNow The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) on Tuesday announced a project to link their respective fast payment systems — Unified Payments Interface (UPI) and PayNow — to facilitate instant, low-cost, cross-border fund transfers. The linkage is targeted to be operationalised by July 2022. “The UPI-PayNow linkage will enable users of each of the two fast-payment systems to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system,” the RBI said in a statement. UPI is…
15 September, 2021
Banking
National Payments Corporation of India (NPCI) NPCI was set up in 2008. It is a 'Not for Profit' company, which was set up in 2008 as an umbrella organization for all retail payments systems in India. It was set up with the guidance and support of (RBI) and the Indian Banks’ Association (IBA). Initially, the shareholding was for 10 banks, it was diversified to 56 banks. Objectives To consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business processes for all retail payment systems. To facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion. RBI manages and operates NEFT and ECS while other…
31 January, 2022
Banking
Fuel Prices quicken WPI inflation to 11.39% in August Inflation in wholesale prices resurged to 11.39% in August, staying in the double digits for the fifth month in a row. Inflation in manufactured products escalated for the fourth month in a row to 11.4%, as the second order effects of high fuel prices kicked in. Fuel and power inflation firmed up to 26.1% in August after a dip in July, even though food price inflation moderated to 3.43% from 4.46% . “LPG, petrol and diesel witnessed inflation of 48.1%, 61.5% and 50.7% respectively,” said Sunil Kumar Sinha, principal economist at…
16 September, 2021
Inflation
Digital Agriculture Mission Recently, the Ministry of Agriculture and Farmers Welfare signed 5 Memorandums of Understanding (MOUs) with private companies for taking forward Digital Agriculture. A Digital agriculture mission has been initiated for 2021 -2025 by the government for projects based on new technologies like artificial intelligence, blockchain, remote sensing and GIS technology, use of drones and robots etc. What is Digital Agriculture Mission? Digital Agriculture is “ICT (Information and Communication Technologies) and data ecosystems to support the development and delivery of timely, targeted information and services to make farming profitable and sustainable while delivering safe nutritious and affordable food…
15 September, 2021
Agriculture
Coal Project enhances Green cover: A case study Even as the notion is that Coal mining in India degrades the land, new projects of Coal India Ltd. (CIL), under the Ministry of Coal are not only reclaiming land to its original shape but also enhancing Green cover along with Coal Mining activity. Emphasis is to have a simultaneous backfilling of land after opencast Coal Mining operation and dense plantation thereon to maintain environmental equilibrium. Out of many such greenfield projects, one of the largest projects of CIL, the Jayant Opencast Coal Project in Singrauli District of Madhya Pradesh is forging ahead with a…
14 September, 2021
Coal sector reforms
MSP for Agriculture crops 2021-22 The policies of the Government of India and decisions taken in recent years towards farmers’ welfare have resulted in significant improvement in food grain production and sustained agriculture growth despite the COVID-19 pandemic. The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSP) on 8th September 2021 for all designated Rabi crops for Rabi Marketing Season (RMS) 2022-23, when in advance of the sowing season. MSP is an integral component of Agriculture Price Policy and it targets to ensure…
14 September, 2021
MSP
NCLT, ITAT get new members Click here to read about the Insolvency and Bankruptcy Act and National Company Law Tribunal (NCLT) vs NCLAT. The government has appointed 31 people as judicial, technical and accountant members at the NCLT and the ITAT, amid the Supreme Court flagging concerns about vacancies in various tribunals. Click here to read about the Administrative tribunals in India. The National Company Law Tribunal (NCLT) deals with matters mainly related to companies law and insolvency law, while the Income Tax Appellate Tribunal (ITAT) deals with income tax matters. The appointments also come at a time when the Supreme Court…
13 September, 2021
Insolvency and bankruptcy act
Transport and Marketing Assistance (TMA) scheme The Centre has revised the "Transport and Marketing Assistance" (TMA) scheme for Specified Agriculture Products. In February 2019, the Department of Commerce had introduced ‘Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’ to provide assistance for the international component of freight, to mitigate disadvantage of higher freight costs faced by the Indian exporters of agriculture products. The scheme was initially applicable for exports effected during the period from 01.03.2019 to 31.03.2020 and was later extended for exports effected up to 31.03.2021. Now the Department has notified ‘Revised Transport and Marketing Assistance (TMA)…
11 September, 2021
Agriculture
Medium Range Surface to Air Missile (MRSAM) System In a significant boost to India’s defence capabilities, the first deliverable Firing Unit (FU) of the Medium Range Surface to Air Missile (MRSAM) System was handed over to Indian Air Force (IAF). The MRSAM (IAF) is an advanced network-centric combat Air Defence System developed jointly by the Defence Research and Development Organisation (DRDO) and Israel Aerospace Industries (IAI) in collaboration with the Indian industry comprising private and public sectors including MSMEs. The MRSAM system provides point and area air defence for ground assets against a wide range of threats including fighter aircraft,…
10 September, 2021
Defense industry
India Rankings 2021 NIRF India Rankings 2021 is instituted by National Institutional Ranking Framework. This is the sixth consecutive edition of India Rankings of HEIs in India.'' During its maiden year in 2016, rankings were announced for the University category as well as for three domain-specific rankings, namely Engineering, Management and Pharmacy institutions. Over the period of six years, three new categories and five new subject domains were added. Now the total tally is four categories, namely Overall, University, College and Research Institutions and 7 subjects, namely Engineering, Management, Pharmacy, Architecture, Medical, Law and Dental in 2021. Research institutions have…
10 September, 2021
Education
PLI Scheme for Textiles Why in news? Taking steps forward towards the vision of an ‘Aatmanirbhar Bharat’, Government has approved the PLI Scheme for Textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with a budgetary outlay of Rs. 10,683 crores. PLI scheme for Textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs. 37.5 lakh crore over 5…
29 January, 2022
Industry
National Farmers’ Database The Centre has created a National Farmers’ Database with records of 5.5 crore farmers, which it hopes to increase to 8 crore farmers by December by linking it to State land record databases, according to Agriculture Minister Narendra Singh Tomar. Agriculture has to be linked with digital technology, scientific research and knowledge. The national database was created by taking data from existing national schemes such as PM-KISAN, soil health cards and the insurance scheme PM Fasal Bima Yojna. So far, 5.5 crore farmers had been identified in this manner. The Minister urged the States to create their…
07 September, 2021
Agriculture
Special Livestock Sector Package Why in news? The Cabinet Committee on Economic Affairs (CCEA) has approved the implementation of a special livestock sector package. Click here to read about Livestock sector. About the Package It aims to boost growth in the livestock sector and thereby making animal husbandry more remunerative to 10 crore farmers engaged in Animal Husbandry Sector. The Central government will spend Rs. 9,800 crores on livestock development over the next five years All the schemes of the Department will be merged into three broad categories: Development Programmes: It includes Rashtriya Gokul Mission, National Programme for Dairy Development (NPDD), National Livestock Mission…
07 September, 2021
Allied agriculture activities
INSPIRE Awards - MANAK scheme MANAK stands for Million Minds Augmenting National Aspiration and Knowledge. The INSPIRE Awards - MANAK scheme is aligned with the ‘Start-up India’ initiative launched by the Hon’ble Prime Minister of India. The scheme aims to motivate students in the age group of 10-15 years and studying in classes 6 to 10 to become future innovators and critical thinkers. It believes that once the original ideas and innovations rooted in Science and Technology by students get incubated, it will foster a culture of creativity and innovative thinking among school children. This will help address the societal…
05 September, 2021
Education
24th FSDC Meeting Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman chaired the 24th meeting of the Financial Stability and Development Council (FSDC) here today. The meeting was attended by (PT Pointers for Banking and State PSC Exams) Dr. Bhagwat Kishanrao Karad, MoS (Finance); Shri Pankaj Chaudhary, MoS (Finance); Shri Shaktikanta Das, Governor, Reserve Bank of India; Dr. T. V. Somanathan, Finance Secretary and Secretary, Department of Expenditure, Ministry of Finance; Shri Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance; Shri Tarun Bajaj, Secretary, Department of Revenue, Ministry of Finance; Shri Debasish Panda, Secretary, Department of Financial…
04 September, 2021
Economic reforms
Atal Pension Yojana (APY) Atal Pension Yojana (APY) addresses the old age income security of the working poor and the longevity risks among the workers in the unorganised sector. It encourages the workers in the unorganised sector to voluntarily save for their retirement. The Government launched the scheme with effect on 1st June 2015. The scheme replaces the Swavalamban Yojana / NPS Lite scheme. Benefits of Atal Pension Yojana Fixed pension for the subscribers ranging between Rs.1000 to Rs. 5000, if s/he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and…
06 January, 2022
Economic reforms
Rationale for PMJDY Ministry of Finance is committed to provide financial inclusiveness and support to the marginalized and hitherto socio-economically neglected classes. Financial Inclusion is a national priority of the Government as it is an enabler for inclusive growth. It is important as it provides an avenue to the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders. A key initiative towards this commitment is the Pradhan Mantri Jan Dhan Yojna (PMJDY), which is one of the…
02 September, 2021
Financial inclusion
PM Gati Shakti Master Plan On India’s 75th Independence Day, the Prime Minister announced that the Centre will launch ‘PM Gati Shakti Master Plan’. It is a 100 lakh crore Infrastructure plan for developing ‘holistic infrastructure’. The plan is aimed at easier interconnectivity between road, rail, air and waterways to reduce travel time and improve industrial productivity. The push for infrastructure is in line with the government’s efforts to step up capital expenditure in infrastructure to promote economic growth. Significance of the project The project will be a source of employment opportunities for the youth in future. Infrastructure development has…
01 November, 2021
Infrastructure
Issues in National Mission on Edible Oil-Oil Palm In a letter to Prime Minister Narendra Modi last week, soon after the launch of the 11,040 crore National Mission on Edible Oil-Oil Palm (NMEO-OP), Meghalaya MP Agatha Sangma warned that the focus areas were “biodiversity hotspots and ecologically fragile” and oil palm plantations would denude forest cover and destroy the habitat of endangered wildlife. The palm is an invasive species. It is not a natural forest product of northeastern India and its impact on our biodiversity as well as on soil conditions has to be analysed even if it is grown…
30 August, 2021
Agriculture
NITI bats for tax breaks to achieve monetisation goal To make the National Monetisation Pipeline (NMP) a success, the government should give Income Tax breaks to attract retail investors into instruments such as Infrastructure Investment Trusts (InvITs), the NITI Aayog has recommended. The Centre’s think tank driving the NMP, estimated to raise almost ?6 lakh crore for the exchequer over four years, has also called for bringing such trusts within the ambit of the Insolvency and Bankruptcy Code (IBC) to provide greater comfort to investors. Bringing in policy and regulatory changes to scale up monetisation instruments such as InvITs and…
30 August, 2021
Disinvestment
Small Finance Banks in India Why in news? The Reserve Bank of India (RBI) said it has received applications from two more entities — Cosmea Financial Holdings Private Ltd. and Tally Solutions Private Ltd. — seeking licences to operate Small Finance Banks (SFBs). This is as per RBI’s guidelines for ‘on tap’ licensing of small finance banks in the private sector. With this, a total of six entities have applied for the licence. The other four applicants who were named in April 2021 are VSoft Technologies Private Ltd., Calicut City Service Co-operative Bank Ltd., Akhil Kumar Gupta, and Dvara Kshetriya…
07 January, 2022
Banking
One Nation One Ration Card (ONORC) About ONORC The One Nation One Ration Card (ONORC) is an ambitious plan and endeavour of the Department to ensure seamless delivery of subsidised food-security entitlements to all beneficiaries covered under the National Food Security Act, 2013 (NFSA), irrespective of their physical location anywhere in the country. The objective of this programme is to empower all NFSA beneficiaries to be self-reliant for their food security anywhere in the country, through the portability of their same existing ration cards to seamlessly lift their subsidized foodgrains (in part or full) from any ePoS (electronic Point of…
29 August, 2021
Food security
Hydroelectric power in India What is Hydroelectric power? Hydroelectric power is electricity produced from generators driven by turbines that convert the potential energy of falling water into mechanical energy. India overtook Japan in 2019 as the fifth largest world hydropower producer by capacity which currently is 50 GW. Only China, Brazil, the US and Canada have a greater hydropower capacity globally. The country has 197 hydropower plants capable of producing more than 25 megawatts (MW), according to the International Hydropower Association (IHA), plus nine pumped storage stations accounting for 4,786MW capacity. As of 31 March 2020, India's installed utility-scale hydroelectric…
29 August, 2021
Renewable energy
FSDC (Financial Stability and Development Council) With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Government as the apex level forum in December 2010. The Chairman of the FSDC is the Finance Minister and its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC) Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser. The Council can invite experts to its meeting if required.…
28 August, 2021
Financial Market
Northeast SDG Index by NITI Aayog A milestone toward localising the Sustainable Development Goals (SDGs) was achieved with the release of the first edition of the North Eastern Region (NER) District SDG Index Report and Dashboard 2021–22 by NITI Aayog and the Ministry of Development of North Eastern Region (M/DoNER), today. The NER District SDG Index& Dashboard, a collaborative effort by NITI Aayog and the Ministry of DoNER, with technical support from UNDP, is the first of its kind in the country as it focuses on the North Eastern Region, which is of critical significance to the country’s development trajectory.…
27 August, 2021
Northeast development
Sugarcane Industry of India Historical Background Sugar has been produced in India since ancient times and then it spread to other parts of the world. Click here for the information on Sugarcane crop in India. In India, sugarcane is planted thrice a year in October, March and July depending on part of the country. India has a long tradition of manufacturing sugar. References of sugar making by the Indians are found even in the Atharva Veda. India is rightly called the homeland of sugar. But in ancient times, only gur and Khansari were made and the modem sugar industry came…
27 August, 2021
Sugar Industry
SAMRIDH Scheme Startups are new types of wealth creators in our country. The need of the hour is to relentlessly work towards making India’s Startups and the Startup Ecosystem the best in the whole world. This vision of the Prime Minister was also emphasised by Electronics and Information Technology Minister Shri Ashwini Vaishnaw in a recent event whereby he stated, “Government will support startups and entrepreneurs in the most challenging phase which is the initial risk phase and also stated to serve 1.3 billion people India will scale up the network of incubators and accelerators to phenomenal levels.” The above…
26 August, 2021
Aatmnirbhar Bharat
FRP and Sugar Pricing Policy in India With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009 and the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons. The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting the State Governments and associations of the sugar industry. The amended provisions of the Sugarcane (Control) Order, 1966 provide for fixation of FRP of sugarcane having regard to…
26 August, 2021
Sugar pricing policy
Sugarcane: Major crops and cropping patterns of India Sugarcane (Saccharum officinarum) family Gramineae (Poaceae) is widely grown crop in India. It provides employment to over a million people directly or indirectly besides contributing significantly to the national exchequer. Sugarcane growing countries of the world lay between the latitude 36.7° north and 31.0° south of the equator extending from tropical to subtropical zones. Sugar cane originated in New Guinea where it has been known for thousands of years. Sugar cane plants spread along human migration routes to Asia and the Indian subcontinent. Here it cross-bred with some wild sugar cane relatives…
26 August, 2021
Cropping patterns in various parts of India
EASE: Public Sector Bank (PSB) Reforms Agenda Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman today unveiled the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-22 - tech-enabled, simplified, and collaborative banking. She unveiled the annual report for the PSB Reforms Agenda EASE 3.0 for 2020-21 and participated in the awards ceremony to felicitate best performing banks on EASE 3.0 Banking Reforms Index. State Bank of India, Bank of Baroda and Union Bank of India have won the awards for best performing banks for PSB Reforms EASE 3.0 based on the EASE…
26 August, 2021
Banking
National Monetisation Pipeline: Critical Analysis Union Budget 2021-22 has identified the monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing. Towards this, the Budget provided for the preparation of a ‘National Monetisation Pipeline (NMP)’ of potential brownfield infrastructure assets. NITI Aayog in consultation with infra line ministries has prepared the report on NMP. NMP aims to provide a medium-term roadmap of the programme for public asset owners; along with visibility on potential assets to the private sector. The report on NMP has been organised into two volumes. Volume I is structured as a guide book,…
24 August, 2021
Economic reforms
National Monetization Pipeline In the Union Budget 2021-22, the Finance Minister announced the National Monetization Pipeline. The National Monetisation Pipeline comprises a four-year pipeline of the Central Government's brownfield infrastructure assets. The Union Finance Minister announced launch of a “National Monetization Pipeline” of potential brownfield infrastructure assets stating that Monetizing operating public infrastructure assets is a very important financing option for new infrastructure construction. As part of the National Monetization pipeline, assets created by PSUs such as NHAI, PGCIL, Railways etc. would be sold and money raised would then be used for the creation of new infrastructure assets. Presently, we…
10 December, 2021
Economic reforms
Natural Gas Grid in India About Natural Gas Natural gas is a fossil energy source that formed deep beneath the earth's surface. Natural gas contains many different compounds. The largest component of natural gas is methane, a compound with one carbon atom and four hydrogen atoms (CH4). Natural gas also contains smaller amounts of natural gas liquids (NGL, which are also hydrocarbon gas liquids), and nonhydrocarbon gases, such as carbon dioxide and water vapor. We use natural gas as a fuel and to make materials and chemicals. It is found along with other fossil fuels and escapes while drilling underground…
23 August, 2021
Energy
North East Gas Grid Project In only the second instance of the government directly funding a gas pipeline, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a ? 5,559 crore viability gap funding of 60% for the proposed northeast gas grid. About 20% of India’s natural gas production comes from the North-East. Out of about 75 million standard cubic meters per day of gas output, 15 mmscmd come from North East. Currently, Assam, Arunachal Pradesh and Tripura have established gas production potential while there are possibilities for the same in Nagaland and Manipur. The 1,656-km North-East Natural Gas…
15 August, 2021
Energy
Pradhan Mantri Urja Ganga Project Pradhan Mantri Urja Ganga project is also known as Jagdishpur – Haldia & Bokaro – Dhamra Pipeline Project (JHBDPL). It is a gas pipeline project that aims to provide cooking gas to people. It was launched in 2016 in Varanasi and later extended to people in the states of Bihar, West Bengal, Odisha and Jharkhand. The government is taking the initiative to connect the eastern states with the national gas grid. The total length of the pipeline under the Pradhan Mantri Urja Ganga Project is approximately 3,384 km, out of which 766 km of pipeline…
15 August, 2021
Energy
Hydrocarbon Vision 2030 for Northeast India Union Ministry of Petroleum and Natural gas (MoPNG) has released the Hydrocarbon Vision 2030 for north-east India in 2016. The Hydrocarbon Vision 2030 outlines steps to leverage the hydrocarbon sector for social and economic development of the north-east region. The states covered under it are Assam, Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, Mizoram and Tripura. Key features of the Hydrocarbon Vision 2030 Objective: To leverage the north-east region’s hydrocarbon potential, improve the availability of petroleum products, enhance access to clean fuels, facilitate economic development and link common people to the economic activities in this…
15 August, 2021
Energy
Largest floating solar PV Project at Vishakhapatnam The National Thermal Power Corporation (NTPC ) Ltd, has commissioned the largest floating solar PV project of 25MW on the reservoir of its Simhadri thermal station in Visakhapatnam, Andhra Pradesh. This is also the first solar project to be set up under the Flexibilisation Scheme, notified by the Government of India in 2018. The Solar PV project was inaugurated today by Shri Sanjay Madan, RED (WR2 & SR), NTPC. The floating solar installation which has a unique anchoring design is spread over 75 acres in an RW reservoir. This floating solar project has…
22 August, 2021
Renewable energy
RBI, IRDAI nod must for FDI in bank-led insurance Applications for Foreign Direct Investment in an insurance company promoted by a private bank would be cleared by the RBI and IRDAI to ensure that the 74% limit of overseas investment is not breached. The changes took effect following amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, as per the gazette notification issued by the Finance Ministry on August 19. “These rules may be called the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2021,” it said. In March, Parliament passed a bill to raise the foreign direct investment…
21 August, 2021
FDI REFORMS
What is Geo Tourism? Geotourism is tourism associated with geological attractions and destinations. Geotourism deals with the abiotic natural and built environments. Geotourism was first defined in England by Thomas Alfred Hose in 1995. National Geological Monuments India is a country with diverse physical attributes, rich cultural heritage and eventful ancient history. Tourism plays a major role in showcasing this great country to the rest of the world. Of late, there has been significant initiative in promoting tourism even in remotest corners of the country. Indian subcontinent exhibits imprints of varied geological processes through ages and is a storehouse of…
25 January, 2022
Tourism
IndiGau: India’s first Cattle Genomic Chip The data on the Cattle and Livestock Sector of India can be accessed through the 20th Livestock Census released in 2019. Recently, the Government of India released “IndiGau’, India’s first Cattle Genomic Chip for the conservation of pure varieties of indigenous cattle breeds like, Gir, Kankrej, Sahiwal, Ongole etc. This indigenous chip was developed by the concerted efforts of scientists of National Institute of Animal Biotechnology (NAIB), Hyderabad, an autonomous institution under the aegis of the Department of Biotechnology. IndiGau is purely indigenous and the largest cattle chip of the world. It has 11,496…
14 August, 2021
Allied agriculture activities
Why in news? The government is eyeing a sale of its residual stakes in erstwhile public sector firms like Paradeep Phosphates, Hindustan Zinc and Balco, which were privatised during the Atal Behari Vajpayee regime, a top finance ministry official said. The government still owns 49% stake in aluminium producer Balco and 29.5% in Hindustan Zinc, with the latter’s sale held up since 2016 following a Supreme Court stay. With both the firms staying highly profitable after the transfer of management control to a private player, these stakes could yield a significant bonanza for the exchequer. Expressions of interest were expected…
28 January, 2022
Disinvestment
National Mission on Edible Oil-Oil Palm: New Edible oil mission The Centre will spend Rs. 11,000 crores on a new mission to ensure self-sufficiency in edible oil production at a time when India’s dependence on expensive imports has driven retail oil prices to new highs. This financial outlay for the National Mission on Edible Oil-Oil Palm (NMEO-OP) will be over a five-year period. “Today, when India is being recognised as a major agricultural exporting country, then it is not appropriate for us to depend on imports for our edible oil needs,” Mr. Modi said noting that the share of…
22 December, 2021
Agriculture
National Biofuel Policy, 2018 About Ethanol: About 5% of the ethanol produced in the world in 2003 was actually a petroleum product. It is made by the catalytic hydration of ethylene with sulfuric acid as the catalyst. It can also be obtained via ethylene or acetylene, from calcium carbide, coal, oil gas, and other sources. Bio-ethanol is usually obtained from the conversion of carbon-based feedstock. Agricultural feedstocks are considered renewable because they get energy from the sun using photosynthesis, provided that all minerals required for growth (such as nitrogen and phosphorus) are returned to the land. Ethanol can be produced…
27 January, 2022
Energy
Seekho aur Kamao Scheme Seekho Aur Kamao is a skill development scheme for the youth of the 14 - 35 years age group and aims at providing employment and employment opportunities, improving the employability of existing workers, school dropouts etc. In the last 7 years appx. 3.92 lakh persons have benefitted under this employment-oriented scheme. The scheme ensures 75% placement, out of which 50% should be in the organized sector. As per scheme guidelines, the implementing organizations will be required to establish linkages with placement services, and for the candidates interested in self-employment after availing the training, the organization shall…
10 August, 2021
Human resource development
Government efforts for Education in Northeast India University Grants Commission (UGC) is implementing schemes, awards, fellowships, chairs and programmes under which financial assistance is provided to institutions of higher education as well as faculty members working in the North Eastern States to undertake quality research covering areas of knowledge across disciplines. Some of the initiatives taken for improving quality of higher education are Choice Based Credit System (CBCS); Universities with Potential for Excellence; Centre with Potential for Excellence in particular area; Consortium for Academic Research and Ethics(CARE) Basic Science Research Scheme for Trans-disciplinary Research for India's Developing Economy (STRIDE) Deen…
10 August, 2021
Education
PM Ujjwala Yojana 2.0 In India, the poor have limited access to cooking gas (LPG). The spread of LPG cylinders has been predominantly in the urban and semi-urban areas with the coverage mostly in middle class and affluent households. But there are serious health hazards associated with cooking based on fossil fuels. According to WHO estimates, about 5 lakh deaths in India alone due to unclean cooking fuels. Most of these premature deaths were due to non-communicable diseases such as heart disease, stroke, chronic obstructive pulmonary disease and lung cancer. Indoor air pollution is also responsible for a significant number…
09 August, 2021
Energy
SANKALP Scheme Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) Scheme is a World Bank loan-assisted programme of the Ministry of Skill Development and Entrepreneurship (MSDE) with three key Result Areas (RA), namely Institutional Strengthening at Central, State, and District level; Quality Assurance of skill development programmes; and Inclusion of marginalized population in skill development programmes. The implementation period of SANKALP is till March 2023. The positive outcome so far is seen in the following areas: Strengthening of the District Skill Committees leading to a demand-driven approach for the implementation of the PradhanMantriKaushalVikasYojana (PMKVY). District-level skill planning through District…
07 August, 2021
Human resource development
Everything about e-RUPI What is e-RUPI and how does it work? e-RUPI is basically a digital voucher that a beneficiary gets on his phone in the form of an SMS or QR code. It is a pre-paid voucher, which he/she can go and redeem it at any centre that accepts its. For example, if the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank. The employee will receive an SMS or a QR Code on his feature phone/smartphone. He/she can go…
07 August, 2021
Banking
National Innovations in Climate Resilient Agriculture Indian Council of Agricultural Research (ICAR), Ministry of Agriculture and Farmers Welfare, Government of India launched a flagship network project ‘National Innovations in Climate Resilient Agriculture’ (NICRA) in 2011. The project aims at strategic research on adaptation and mitigation, demonstration of technologies on farmers’ fields and creating awareness among farmers and other stakeholders to minimize the climatic change impacts on agriculture. In the strategic research, the main thrust areas covered are Identifying most vulnerable districts/regions, Evolving crop varieties and management practices for adaptation and mitigation, Assessing climate change impacts on livestock, fisheries and poultry…
07 August, 2021
Agriculture reforms
Agriculture Export Policy, 2018 India, with large and diverse agriculture, is among the world’s leading producers of cereals, milk, sugar, fruits and vegetables, spices, eggs and seafood products. Indian agriculture continues to be the backbone of our society and it provides livelihood to nearly 50 % of our population. India is supporting 17.84 per cent of world’s population, 15% of livestock population with merely 2.4 per cent of world’s land and 4 per cent water resources. Hence, continuous innovation and efforts towards productivity, pre & post-harvest management, processing and value-addition, use of technology and infrastructure creation is an imperative for…
07 August, 2021
Agriculture reforms
Hydrogen Fuel Cell Hydrogen Fuel is produced through Steam methane reforming: Extraction of hydrogen from methane. But these release CO2 and CO which leads to Climate change. Electrolysis: Separating hydrogen and oxygen atoms. HFC contains NOx as pollutants since Hydrogen (molecule) uses Nitrogen as the impurity. If water is added, pollution can be reduced. To cool down Hydrogen gas into a liquid state, temperature has to be brought down at 20 K. Hence it is difficult to use this fuel efficiently. Hydrogen Economy is the vision of using Hydrogen as a low Carbon Energy source; replacing Natural gas as heating…
20 January, 2022
Renewable energy
SATAT initiative About Biogas Energy produced from organic waste. Converted into energy by direct combustion or by conversion of such wastages into alcohol, methane, or other storage fuels. Bio-gas is produced naturally through process of anaerobic decomposition from waste and bio-mass sources like agriculture residue, cattle dung, municipal solid waste, farms, gardens, kitchen waste, night soil waste, sugarcane press mud, sewage treatment plant (STP) waste, etc. It contains 60-65% Methane, 35-40% CO2, 0.5-1% H2S and rest is water vapour. Gases emitted from Biogas = Methane (60-65%), CO2 (35-40%), Hydrogen Sulphide (0.5-1%), Ammonia and the rest is water vapour. National Biogas and Manure Management Programme (NBMMP) It is a Central Sector Scheme. Setting up of Family Type Biogas Plants mostly for rural and semi urban areas. Under MNRE and implemented by State…
28 September, 2021
Energy crisis & security
Steps to stop illegal mining in Rajasthan First, read the whole Mining sector of India and then read the following write-up. Your retention level will increase exponentially. About Sand Sand is a minor mineral under Section 3(e) of the Mines and Minerals (Development & Regulation) Act, 1957. Section 15 of the MMDR Act, 1957, empowers the State Governments to make rules for regulating the grant of minor mineral concessions. Moreover, Section 23C of the MMDR Act 1957, empowers the State Governments to make rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected therewith. Thus,…
05 August, 2021
Mine and minerals
Samagra Shiksha Scheme revised for 5 years from 2021 to 2026 Background Union Budget, 2018-19 has announced that school education would be treated holistically and without segmentation from pre-primary to class XII. It is, in this context, that the Department launched the Integrated Scheme for School Education, Samagra Shiksha in 2018 by subsuming the erstwhile Centrally Sponsored Schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE). The scheme treats school education as a continuum and is in accordance with Sustainable Development Goal for Education (SDG-4). The scheme not only provides support for the implementation…
20 December, 2021
Education
The civil Aviation sector in India Background Civil aviation in India, the world's third-largest civil aviation market as of 2020, traces its origin back to 1911 when the first commercial civil aviation flight took off from a polo ground in Allahabad carrying mail across the Yamuna river to Naini. Air India is India's national flag carrier after merging with Indian in 2011 and plays a major role in connecting India with the rest of the world. India will be the third-largest civil aviation market in the world by 2024. It recorded air traffic of 131 million passengers in 2016, of…
05 August, 2021
Airports
The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 seeks to amend the Airports Economic Regulatory Authority of India Act, 2008. The 2008 Act established the Airport Economic Regulatory Authority (AERA). AERA regulates tariffs and other charges (such as airport development fees) for aeronautical services rendered at major airports in India. Major airports: The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh. The central government may also designate any airport as a major airport by a…
05 August, 2021
Airports
FASAL and CHAMAN Scheme The Ministry of Agriculture & Farmers’ Welfare is funding various projects for Crop Production Forecasting, which includes FASAL Scheme (Forecasting Agricultural output using Space, Agro-meteorology and Land based observations) and CHAMAN (Coordinated Horticulture Assessment and Management using geo-iNformatics). FASAL is used for crop production forecasting of field crops while CHAMAN is for horticulture crops. In both the projects, Indian Space Research Organization (ISRO) has played a major role in developing methodologies. However, currently the programmes are being operationalized by Mahalanobis National Crop Forecast Centre (MNCFC) of Department of Agriculture & Farmers’ Welfare, with technology support from…
04 August, 2021
Agriculture
India Digital Ecosystem of Agriculture (IDEA) In order to create Agristack in the country, the department is in the process of finalising “India Digital Ecosystem of Agriculture (IDEA)” which will lay down a framework for Agristack. Accordingly, a Task Force has been constituted and in furtherance, a Concept Paper on IDEA has already been floated for comments from the general public not only through the department’s website but also through emails especially to subject matter specialists, Agro-Industry, Farmers, Farmer Producer Organisations (FPOs). The IDEA would help in laying down the architecture for the Agri-stack in the country and that would…
04 August, 2021
Agriculture
Trade Receivables Discounting System (TReDS) Trade Receivable Discounting System (TReDS) is working as per the guidelines issued by RBI. It is an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers. Government of India has also instructed Central Public Sector Enterprises and all companies with a turnover of Rs. 500 Crore or more to get themselves on-boarded on TReDS. It is for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financers and is called TReDS. It includes discounting of both invoices as well as Bills of Exchange. MSME sellers, Corporate…
04 August, 2021
MSME
Pradhan Mantri Krishi Sinchayee Yojana 65 out of 141 million hectares of net area sown is presently covered under irrigation. If irrigation is assured, farmers tend to invest more in farming technology and inputs. PMKSY was initiated in 2015 with an aim to enhance physical access to water on farms and expand cultivable areas under assured irrigation, improve on-farm water use efficiency, introduce sustainable water conservation practices, etc. It is an umbrella scheme, consisting of two major components being implemented by this Ministry, namely, Accelerated Irrigation Benefits Programme (AIBP), and Har Khet Ko Pani (HKKP). HKKP, in turn, consists of…
03 August, 2021
Agriculture
Government efforts for the Manufacturing sector Production Linked Incentive scheme: Keeping in view India’s vision of becoming Aatamnirbhar and enhancing India’s Manufacturing capabilities and exports, an outlay of Rs 1.97 lakh crore has been announced in Union Budget 2021-22 for production linked incentive scheme(PLI schemes) for 13 key sectors for 5 years starting from fiscal year 2021-22.On 12th May, 2021, MHI has approved a production linked incentive scheme (PLI scheme) for Advance Chemistry Cell(ACC) in the country. The total outlay of the scheme is Rs. 18,100 Crore for five years. The scheme envisages to establish a competitive ACC battery manufacturing…
03 August, 2021
Industry
Jute-ICARE An Initiative to Double the income of Jute Farmers Improved Cultivation and Advanced Retting Exercise for Jute (Jute – ICARE) was launched in 2015 to popularize/introduce some of the better agronomic practices like microbial assisted retting among farmers intensively in a few blocks in West Bengal and Assam on pilot basis. The improved agronomic practices include – line sowing of jute using seed drill to increase yield by 10-15%; weed management in jute by wheel hoeing/nail weeder . distribution of quality certified seeds at 50% subsidy. Central Research Institute for Research in Jute and Allied Fibres (CRIJAF) developed a…
01 August, 2021
Agriculture
PM Formalisation of Micro food processing Enterprises (PMFME) Scheme Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crores over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000…
31 July, 2021
Food processing industry
Districts as Export Hubs initiative For the first time, Agri Exporters from the remote Districts of India connected to the international buyers from the USA, the UAE, and Japan. Under the Districts as Export Hubs initiative, the Directorate General of Foreign Trade (DGFT) under the Department of Commerce in partnership with the Agricultural and Processed Food Products Export Development Authority (APEDA) and Invest India conducted a 2 Day Virtual Outreach Event connecting exporters from the Districts to the buyers outside India. Following the opening ceremony, a virtual trade fair was held where 197 exhibitors participated from the states of Punjab,…
31 July, 2021
Import / Export
Farmer Producer Organisations (FPOs) The Government of India has launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” to form and promote 10,000 new FPOs which will leverage economies of scale in production and marketing with a view to enhancing productivity through efficient, cost-effective and sustainable resource use for ensuring sustainable income-oriented farming, thus helping in reduction of cost of farm production and enhancing farmers’ earning thus playing a major role towards doubling the income of farmers. Under this scheme, provision is made for professional handholding support for a period of five years to…
31 July, 2021
Agriculture
National Food Security Mission (NFSM) on Oilseeds, Oil palm and Pulses In order to enhance the production and productivity of Oilseeds and Pulses, the Government of India is implementing National Food Security Mission (NFSM) on Oilseeds, Oil palm and Pulses. NFSM - Pulses programme The NFSM - Pulses programme is implemented in 644 districts of 28 States and Union Territories (UTs) of Jammu & Kashmir and Ladakh. Under the programme, incentives are given to the farmers for cluster demonstrations, seed distribution & production of certified seeds of High Yielding Varieties (HYVs), farm machinery/tools, efficient water-saving devices, plant protection chemicals, nutrient…
31 July, 2021
Food security
K shaped recovery vs V shaped recovery in India What is a K-shaped recovery? A K-shaped recovery is a post-recession scenario in which one segment of the economy begins to climb back upward while another segment continues to suffer. If illustrated, the economic growth would roughly resemble the two diverging diagonal lines of the letter "K" - hence the name. This is quite unusual. Traditionally, when the economy dips, it's felt throughout every industry and demographic, and vice-versa when the economy eventually recovers. Of course, the impact is often greater on some than on others. But overall, nations and people…
30 July, 2021
Terminology
Government concessions to promote Wind Energy Projects Present Status Of Wind Energy Projects More than 70 per cent of the equipment is manufactured in India. About wind resource The wind resource is highly site-specific and It is commercially exploitable potential is available only in seven States i.e. Andhra Pradesh, Gujarat, Tamil Nadu, Madhya Pradesh, Maharashtra, Rajasthan and Karnataka. Wind power projects are set up by private developers based on the techno-economic viability of the project. The Government has taken several steps to promote renewable energy, including wind energy, in the country. These include: Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route, Waiver of…
30 July, 2021
Renewable energy
Leh to get India’s first Green Hydrogen Mobility Project Leh is soon to become India's first city to implement a green hydrogen-based mobility project with zero emission. NTPC, Maharatna PSU under the Ministry of Power signed an MoU with UT of Ladakh and LAHDC to set up the country’s first Green Hydrogen Mobility project, strengthening PM Shri Narendra Modi’s vision to ensure a carbon-free economy based on renewable sources and green hydrogen. REL, a 100% subsidiary of NTPC, signed an MoU with the Union Territory of Ladakh, today, to set up the country’s first green Hydrogen Mobility project in the…
30 July, 2021
Renewable energy
Affordable Rental Housing Complexes (ARHC) Scheme The aims and objectives of the Affordable Rental Housing Complexes (ARHC) Scheme announced under Atmanirbhar Bharat Package are as follows: To address the vision of ‘AtmaNirbhar Bharat Abhiyan’ significantly by creating a sustainable ecosystem of affordable rental housing solutions for urban migrants/poor. To achieve the overall objective of “Housing for All” encompassing the need for affordable rental housing for urban migrants/poor. ARHCs will provide them with dignified living with necessary civic amenities near their place of work. To create a conducive environment by incentivizing Public/Private Entities to leverage investment for creating affordable rental housing…
30 July, 2021
Aatmnirbhar Bharat
Deposit Insurance Credit Guarantee Corporation Bill 2021 About DICGC Bill 2021 Accessing depositors' money has been an issue of when it will be allowed and under what conditionalities. Normally, it takes about 8-10 years, after the complete liquidation of the bank. Now, what we are saying is even. As per the proposed process, a bank under moratorium would have to collect all the account details and balances and share it with the Deposit Insurance Credit Guarantee Corporation (DICGC) within 45 days. The DICGC would get another 45 days to check the details and process the claims. With the deposit insurance increased…
23 September, 2021
Banking
National Education Policy turns one On the first anniversary of the National Education Policy (NEP), the Centre plans to officially roll out some initiatives promised in the policy, such as a credit transfer system that will allow multiple entries and exit options in higher education, as well as engineering programmes in regional languages. However, other promised reforms such as the Higher Education Commission of India (HECI), the four-year undergraduate degree, and the common university entrance test, are not ready yet. Academic Bank of Credit The Academic Bank of Credit will be rolled out for students in over 290 top institutions…
29 July, 2021
Education
About Smart Cities Mission (SCM) For economic growth, improve Quality of life, and local development, harness technology to create smart outcomes. It will cover 100 cities and will be from 2015 to 2020. It is a mission mode project. The Smart City Mission is under MoHUA. SCM will be operated as a Centrally Sponsored Scheme Center will give Rs. 48000 crores over 5 years with Rs. 100 crore per city per year. An equal amount (on a matching basis) will be given by State/ ULB. Smart City Scheme Strategy: Pan city initiative; Develop areas step by step; AMRUT follows a project-based approach, the Smart Cities Mission follows an area-based strategy; Retrofitting; Redevelopment and Greenfield. Core Infrastructure components:…
06 January, 2022
Infrastructure
Pradhan Mantri Awaas Yojana (Rural vs Urban): Comparison Pradhan Mantri Awaas Yojana – Gramin, 2016 The Pradhan Mantri Awas Yojana (Urban), 2015 The scheme would be implemented in rural areas throughout India except for Delhi and Chandigarh. Funding: It is a Centrally Sponsored Scheme: 60:40 and 90:10. 1.2 lakh will be given in plain areas and 1.3 lakh in hilly/ difficult/ Backward areas. Objective: To provide pucca house to all who are houseless & living in dilapidated houses in rural areas by 2022. 1 crore houses in rural areas over 3 years. Unit size is 25 sq. m. The beneficiary is entitled to 90 days of unskilled labour from MGNREGA. Loan of 1.2 lakh for construction which is optional. …
25 December, 2021
Housing sector
Anti Drone system developed by India DRDO has developed an anti-drone system to neutralize enemy drone attacks. The Indigenous Drone Technology is capable of counter-attacks including detection, Soft Kill (for jamming the communication links of Drone) and Hard Kill (Laser based on hard kill to destroy the Drone) of enemy Drones. The Anti-Drone System Technology and how it works Anti-drone systems are used to detect and/or intercept unwanted drones and unmanned aerial vehicles (UAVs). Hostile drones may be used to deploy explosives, smuggle contraband or gather intelligence on sensitive assets, and the proliferation of low-cost UAVs has led to an…
29 July, 2021
Defense industry
PM Fasal Bima Yojana, 2016 = MoAFW One Nation – One Scheme theme. It will replace 2 schemes: National Agriculture Insurance Scheme (NAIS) and the modified NAIS. It was launched along with 2 schemes: Weather Based Crop Insurance Scheme (WBCIS) and restructured pilot UPIS (Unified Package Insurance Scheme). Objectives: Provide insurance coverage, Stabilize (not double) income of farmers, Encourage farmers to adopt innovative and modern agriculture practices and Ensure flow of credit to Agri sector. Components Uniform premium of 2% for all Kharif crops, 1.5% for all Rabi crops and 5% for all commercial and horticulture crops. No upper limit on Government subsidies. Earlier there was a capping but now the farmers will get a claim against the full sum insured without any reduction. Even for…
29 July, 2021
Agriculture
Indirect Taxes Indirect taxes are consumption-based taxes that are applied to goods or services when they are bought and sold. The government receives indirect tax payments from the seller of the good/service. The seller, in turn, passes the tax on to the end user i.e. buyer of the good/service. Thus, the name indirect tax as the end user of the good/service does not pay the tax directly to the government. Goods and Services Tax Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services. It is levied at…
29 July, 2021
Tax
Foreign exchange reserves position as on 27 Jul 2021 India’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides a cushion against unforeseen external shocks Whether the reserve funds are adequate to meet the international payment obligations, the ratio of forex reserves to total external debt stood at 101.2 per cent and short-term external debt to forex reserves stood at 17.5 per cent as at end-March 2021. The ratio of volatile capital flows (including cumulative portfolio inflows and outstanding short-term debt) to reserves was 67.0 per cent at end-December 2020. India is…
28 July, 2021
Forex
NARS Research on Agriculture Research findings : India is a major producer of paddy, wheat and pulses. In production, India ranks 2nd in paddy & wheat and 1st in pulses in the world including neighbouring countries. National Agricultural Research System India has one of the world’s largest Agricultural Research systems viz., National Agricultural Research System (NARS) including ICAR institutes and State Agricultural Universities (SAUs). The NARS has contributed immensely to make India self-sufficient in food production and serves the agricultural technology and information needs of the country. NARS has a research network of 102 ICAR Research Institutes, 11 Agricultural Technology…
28 July, 2021
Agriculture
Power Generation from non-fossil fuel sources Renewable Energy Targets The government of India had set a target of 1,75,000 MW installed capacity from renewable sources by the year 2022 which includes 1,00,000 MW from Solar, 60,000 MW from Wind, 10,000 MW from Biomass and 5000 MW from Small Hydro. Present Status As on 30.06.2021, the total capacity of Renewable Energy installed was 96.95 GW. This does not include large Hydro, which is also renewable. As on 30.06.2021, the total power generation capacity installed from non-fossil fuel sources was 150.06 GW; which is 39% of the total installed capacity. Therefore, India…
24 July, 2021
Energy
NTPC Group achieves over 100 Billion Units of cumulative generation in the 2020-21 financial year NTPC Group companies under the Ministry of Power have achieved over 100 Billion Units (BU) of cumulative generation. NTPC Korba (2600 MW) in Chattisgarh is the top performing thermal power plant in India with 97.61% Plant Load Factor (PLF) between April to June 2021, as per the data published by Central Electricity Authority (CEA). With a total installed capacity of 66085 MW, NTPC Group has 71 Power stations including 29 Renewable projects. NTPC has set a target to install 60 gigawatts (GW) of renewable energy…
25 July, 2021
Energy
Periodic Labour Force Survey (PLFS) The unemployment rate for women Periodic Labour Force Survey (PLFS)- conducted by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. In 2019-20, Labour Force Participation Rate(LFPR) for the persons aged 15 years and above on usual status (principal status + subsidiary status) basis, LFPR for women has increased from 24.5% in 2018-19 to 30.0% in 2019-20 and the unemployment rate for women has come down from 5.1% in 2018-19 to 4.2% in 2019-20. Government initiatives to improve women’s participation in the labour force-. In order to encourage employment of women, a number of…
26 July, 2021
Unemployment
FISHERIES sector in India India is World's 2nd largest fish producer and 2nd largest aquaculture nation after China. Fisheries are India's single largest Agri export. The USA is the largest market for Indian seafood products. 1% GDP and 5% Agri GDP. Blue Revolution It was launched during the 7th FYP through Fish Farmers Development Agency. It improved aquaculture through new technologies of fish breeding, rearing, marketing and export. Blue Revolution 2.0/ Neel Kranti Mission: Focus is on development and management of fisheries. This covers inland fisheries, aquaculture, marine fisheries including deep sea fishing, mariculture and all activities undertaken by the National Fisheries Development Board (NFDB). For complete news on Blue revolution and PM Matsya…
04 December, 2021
Fisheri
Farmer Producer Organizations(FPOs) The government of India has approved and launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations(FPOs)” to form and promote 10,000 new FPOs till 2027-28 with a total budgetary outlay of Rs.6865 Cr. Under the scheme, the formation and promotion of FPO is based on the Produce Cluster Area approach and the specialized commodity-based approach. While adopting a cluster-based approach, the formation of FPOs will be focused on “One District One Product” for the development of product specialization. Initially, one FPO is allocated per block. So far, a total of 4465 new FPOs…
28 July, 2021
Agriculture
New Technologies in Agriculture Sector National Agricultural Research System National Agricultural Research System coordinated at the apex level by the Indian Council of Agricultural Research (ICAR)/ Department of Agricultural Research and Education (DARE), comprises of 98 Agricultural Research Institutes, 5 Deemed Universities and 3 Central Agricultural Universities besides 63 State Agricultural Universities, 4 Universities with Agriculture Faculty and 82 All India Coordinated Research Projects (AICRPs)/Network projects mandated for developing, testing and refining new technologies in the agriculture sector. Krishi Vigyan Kendras (KVKs) To provide information about these technologies to the farmers, the Government has established a network of 725 Krishi…
28 July, 2021
Agriculture
Organic Farming and Zero Budget Natural Farming Read the complete topic about Organic Farming and then read the following content, your retention quality will improve exponentially. Paramparagat Krishi Vikas Yojana: click here to get the complete topic. Zero Budget Natural Farming Intro: Originally promoted by Subhash Palekar in the mid-1990s as an alternative to GR methods. Rationale: According to NSSO data, ~ 70% of Agriculture households spend more than they earn and more than half of farmers are indebted because of the rising cost of external inputs. In Andhra Pradesh and Telangana, ~ 90% are indebted. The impact of chemicals on the Environment & long-term…
28 July, 2021
Agriculture
NSDM to train a minimum of 300 million skilled people by 2022 Read the complete note on Skill Development Efforts of the Government of India and then continue reading here Ministry of Skill Development and Entrepreneurship has launched the National Skill Development Mission (NSDM) to provide the overall institutional framework to rapidly implement and scale up the skill development efforts across India. NSDM envisages training a minimum of 300 million skilled people by the year 2022. Ministry of Skill Development and Entrepreneurship promotes the establishment of model and aspirational skill centres known as Pradhan Mantri Kaushal Kendra (PMKK) in every…
27 July, 2021
Human resource development
Speedy clearance of Exploration Projects The Government has been making continuous efforts to ensure timely clearances and approvals. Various efforts made by the Government in this regard are: The Empowered Coordination Committee (ECC) has been constituted under the Cabinet Secretary for streamlining and speeding up clearances and approvals. Ministry of Petroleum & Natural Gas (MOP&NG) vide OM dated 28.02.2020 conveyed approval of Self Certification of Production Sharing Contracts (PSCs) processes. Twenty-two processes were identified where documents from the Contractors shall be accepted on Self-Certification basis and no approval is required. Ministry of Environment, Forest & Climate Change (MoEF&CC) has launched…
Strategic Petroleum Reserves in India It is a storage of crude oil which would act as a cushion during any external supply disruptions or supply-demand mismatch shock. The global standard for strategic oil reserves, as set by the International Energy Agency (IEA) and Integrated Energy Policy 2006 of India recommended that country should maintain a reserve equivalent to 90 days of oil imports for strategic- cum-buffer stock purposes. The crude oil storages are constructed in underground rock caverns and are located on both the East and West coast of India. They are considered to be more environment friendly and incur less evaporation loss than ground level storage. Construction of storage facilities are maintained by Indian Strategic Petroleum Reserves Limited (an SPV of the…
24 November, 2021
Oil Crisis
MSME Sector in India First, complete this lecture by Ankit Sir on the MSME Sector of India. And then read this comprehensive notes. Your retention level will increase exponentially. Micro, Small and Medium Enterprises Development Act (MSMEDA), 2006 Ministry of MSME established in 2007. MSME Act, 2006 is 1st-ever legal framework for recognition of the concept of “enterprise” which comprises both manufacturing and service entities. The Act also provides a statutory consultative mechanism at the national level. The primary responsibility for the promotion and development of MSMEs is of State Govt. As per National Sample Survey (NSS), there were 6.3 crore unincorporated non-agricultural MSMEs, excluding those registered under Factories Act, 1948; Companies Act, 1956; Construction…
27 July, 2021
MSME
Steps taken by the Government to promote Agriculture Sector in Education The Indian Council of Agricultural Research (ICAR) has informed that to promote agriculture sector through Education, 63 State Agricultural Universities, 3 Central Agricultural Universities, 4 Deemed to be Universities and 4 Central Universities with agriculture faculty are working in the country. ICAR has also informed that in order to promote agricultural education and attract students in agricultural education, various National/International scholarships are provided to students at different levels. Further, the National Education Policy, 2020 envisions that both capacity and quality of agriculture and allied disciplines must be improved in…
27 July, 2021
Agriculture
Self-reliance in defence manufacturing Ministry of Defence has notified a ‘First Positive Indigenisation list’ of 101 items on 21 Aug 2020 and ‘2nd Positive Indigenisation list’ of 108 items on 31 May 2021. This is a big step to promote indigenisation in the defence sector. These lists include some high technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircrafts, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, armoured dozor and many other items to fulfil the needs of our Defence Services. SRIJAN portal to promote indigenization was launched on 14…
13 December, 2021
Defense industry
Kandla SEZ became the first Green SEZ Kandla SEZ (KASEZ) was awarded IGBC Platinum Rating. KASEZ is the First Green SEZ to achieve the IGBC Green Cities Platinum Rating for Existing Cities. The efforts of the KASEZ team were applauded especially noting the fact that this was accomplished in the Bhuj region where water conservation and afforestation are critical interventions. This was a major achievement and is part of activities envisaged under the commitment of the Government to the Green SEZs Mission as part of celebrations marking India@75 - Azadi ka Amrut Mahotsav. It may be noted that the Government…
27 July, 2021
Investment
Steps were taken to improve the Nutritional status of Women and Children Read complete news on Malnourishment: click here The specific targeted interventions being implemented by the Government to improve the nutritional status of pregnant women and lactating mothers under the umbrella Integrated Child Development Services Scheme (ICDS) throughout the country are as under: Anganwadi Services Scheme POSHAN Abhiyaan Pradhan MantriMatruVandanaYojana (PMMVY) Anganwadi Services Scheme: The beneficiaries under this scheme are children in the age group of 0-6 years, pregnant women and lactating mothers and a following package of services is provided under the scheme: Supplementary Nutrition (SNP) Pre-school Non-formal…
24 July, 2021
Malnourishment
Industrial Training Institutes (ITIs) ITIs are the backbone of the vocational training system, and the only source of supply of skilled manpower to the manufacturing industry. There are 11,500 ITIs having about 16 lakh seats. But this is grossly inadequate. Only 10% of the workforce has got formal or informal technical training. Only one-fourth of this is formally trained. The intake capacity of UG engineering colleges was > 16 lakh in India which was almost the same as the seating capacity of ITIs. But admissions are not there. Blue-collar workers are not respected. Over 60 years of existence, ITIs have given excellent technicians, mechanics, entrepreneurs and professional leaders. The Industrial…
24 July, 2021
Human resource development
Government efforts for Skill Development and Entrepreneurship India is 1 of the youngest nations in the World with > 62% of the population in the working age group i.e. 15 to 59 years and > 54% of population below 25 years. Based on the Census 2011 and NSSO data, 104 million fresh entrants to the workforce will require skill training by 2022. Govt has the vision of "Skilled India" with skilling 500 million by 2022. In contrast to developed countries, where % of the skilled workforce is between 60-90% of the total workforce, India records only 4.69% of the workforce with formal vocational skills. Currently, ~ 40 Skill…
24 July, 2021
Human resource development
Pradhan Mantri Kisan SAMPADA Yojana Erstwhile SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters). It is under the Ministry of Food Processing Industries. Tenure: SAMPADA launched in 2017 for 2016 - 2020 coterminus with the cycle of 14th FC. Funding: Central Sector Scheme with the allocation of Rs. 6000 crores. The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri-Waste. It focuses on Food processing in India. Components: It is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infra, etc. and Also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation…
24 July, 2021
Food processing industry
Special Economic Zones (SEZ) About Special Economic Zones (SEZ) The 1st Export Processing Zone (EPZ) was set up in 1959 at Shannon, in Ireland. India realised how effective EPZ is in promoting Exports. India was inspired by China for the setting up of SEZ. Asia’s First EPZ was set up in Kandla in 1965. India 1st introduced the concept of SEZ in the EXIM policy 2000. SEZ Act, 2005 is an umbrella legal framework for SEZ. SEZ refers to a specially demarcated territory usually known as ‘deemed foreign territory with Tax holidays, exemption from duties for export and import, World-level economic and social infrastructure for exports along with Facilities like cheap labour, strategic location and market access. The Center gives SEZs, Special tax incentives for foreign investments…
11 December, 2021
Investment Models
Government initiatives to boost Industrial Manufacturing The government of India has taken several steps to improve the quality standards of products manufactured under the AatmaNirbhar Bharat Campaign. These inter alia include: Quality Control Orders (QCOs): Since the announcement of AatmaNirbhar Bharat campaign, Central Government through its various Ministries/Departments has notified 156 products under compulsory BIS certification through issuance of QCOs. As per these QCOs, the products specified therein shall conform to the requirements of relevant Indian Standards and bear a Standard Mark under a license from Bureau of Indian Standards. Production-Linked Incentive (PLI) Scheme: To provide a major boost to…
24 July, 2021
Industry
Agriculture Mechanization in India Why is Agriculture Mechanisation important? Agricultural Mechanization plays a vital role in optimizing the use of land, water energy resources, manpower and other inputs like seeds, fertilizers, pesticides etc to maximize the productivity of the available cultivable area and make agriculture a more profitable and attractive profession for rural youth. Agricultural Mechanization is one of the key drivers for the sustainable development of the agriculture sector. Sustainable Agriculture mechanization growth will require appropriate and precision agricultural machinery adequately supported by the latest technology. Sub mission on Agriculture Mechanization Ministry of Agriculture and Farmers Welfare has launched…
24 July, 2021
Agriculture
Paramparagat Krishi Vikaas Yojana (Organic Farming), 2015 Sikkim is World's 1st organic State. MP has the largest area under Organic certification followed by Rajasthan, Maharashtra and UP. Ministry: of Agriculture and Farmer’s Welfare. Funding: Centrally Sponsored with 60:40 for States except NE and Himalayan States (90:10) and 100% for UTs. Components: To produce agricultural products free from chemicals and pesticide residues by adopting eco-friendly, low-cost technologies. It empowers farmers through a cluster approach not just in input production, and quality assurance (Participatory Guarantee System) but also in value addition and direct marketing through innovative means. PKVY is a subcomponent of the Soil Health Management(SHM) scheme under NMSA. Targets: >= 50 farmers will…
23 July, 2021
Agriculture
IBBI amends Insolvency rules to improve transparency The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016. It is a part of the Insolvency and Bankruptcy Act, of 2016. The amendment regulations enhance the discipline, transparency, and accountability in corporate insolvency proceedings: A corporate debtor (CD) may have changed its name or registered office address prior to the commencement of insolvency. The stakeholders may find it difficult to relate to the new name or registered office address and consequently fail to participate in the CIRP.…
22 July, 2021
Insolvency and bankruptcy act
RBI plans to introduce Central Bank Digital Currency (CBDC) The Reserve Bank of India is likely to soon kick off pilot projects to assess the viability of using digital currency to make wholesale and retail payments to help calibrate its strategy for introducing a full-scale Central Bank Digital Currency (CBDC). India is already a leader in digital payments, but cash remains dominant for small-value transactions, he said, stressing that an official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement. Some key issues are being examined: whether they should be used in…
23 July, 2021
Digital currency
Krishi Vigyan Kendras (KVKs) 1st KVK in Puducherry. 100% funded by Govt. KVKs are sanctioned to Agri Universities, ICAR, related Govt Depts and NGOs working in Agri. KVK, is an integral part of the National Agricultural Research System (NARS). It aims at location specific technology modules. Functions On farm testing to assess location specificity of Agri technologies. Frontline demonstrations to establish production potential of technologies. as Knowledge and Resource Centre. Provide farm advisories using ICT KVKs produce quality tech products (seed, planting material, bio-agents, livestock) and make it available to farmers. The following steps have been taken by the Indian…
21 July, 2021
Agriculture
One District One Focus Product Scheme Ministry of Agriculture and Farmers Welfare, and Ministry of Food Processing Industries has finalized the products for One District One Focus Product (ODOFP). Products - Agricultural, horticultural, animal husbandry, poultry, milk, fisheries, aquaculture, marine and processed food sectors. These products are finalized after taking inputs from States/UTs and Indian Council of Agricultural Research (ICAR). They will be promoted in a cluster approach through convergence of the schemes, to increase the farmers’ income and value of the products. Ministry of Agriculture and Farmers Welfare will support ODOFP from its ongoing centrally sponsored schemes -Mission for Integrated Development of Agriculture, National Food…
21 July, 2021
Agriculture
e-Technology in Agriculture Indian Council of Agricultural Research (ICAR) is continuously working to upgrade technology and provide quality seeds to farmers. During this process the advancements made in the agricultural sciences both within India and outside are considered for their replication under the suitable farming situations. ICAR focuses on development/ adoption of new technologies such as- high yielding and multi-stress resistant/tolerant varieties/hybrids in major crops; multi-nutrients rich varieties of rice, wheat, maize, lentil and pearl millet and improved quality of mustard and soybean; blast resistant wheat varieties; transgenic varieties in cotton, pigeonpea and chickpea; exploitation of gene editing technology for…
21 July, 2021
Agriculture
Organic Farming It means no use of hazardous chemicals. Government rule says atleast 3 years, a farmer must grow only then, Organic farming can be granted. Effect of Inorganic Fertilizers and other agro-chemicals on Soil and Plants It results in nutrient loss and increases soil acidity with nitrification. Emission of Ammonia, Methane, Nitrous oxide and elemental nitrogen from soil as a result of denitrification. Depletion of secondary and micro nutrients especially Sulphur and Zinc. Nitrogen Fertilizers without the use of organic manures, there is always the human depletion and fall in the crop production. Nitrate pollution of drinking water in Punjab due to leaching. Advantages of Organic Manures It provides all the nutrients required…
21 July, 2021
Agriculture
Progress in doubling Farmer’s income The strategy adopted by the Government for increasing income is Higher volume of output through higher productivity Lower cost of production and Higher real remunerative returns on the farmers’ produce. What are the steps taken? In the case of production, the farmers have been registering higher productivity across all segments of Agriculture. There has been recorded growth in total output of food grains, oilseeds, horticulture, milk and so on. The annual production under various sectors has increased appreciably as seen at the end of the year 2020-21. These include a food grains output of 303.34…
21 July, 2021
Agriculture
Government efforts for Sustainable Agriculture The Government has adopted several developmental programmes, schemes, reforms and policies that focus on higher incomes for the farmers and to promote Sustainable Agriculture and Farmers Prosperity. We advice you to watch this free and comprehensive lecture by Ankit Sir on Agriculture (Mindmap and explanation) and then come back to this document, your retention quality will increase exponentially. 1) PM KISAN With a view to provide income support to all farmers’ families across the country, to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, the Central…
21 July, 2021
Agriculture
Initiatives for Energy Efficiency in India The Ministry of Power is implementing measures to save energy with an objective to reduce CO2 emission levels in the environment from industries, establishments and by using equipment/ appliances. In this regard, Perform Achieve and Trade (PAT) Scheme is a key programme for large industries and establishments. Perform Achieve and Trade (PAT) Scheme This scheme aims to enhance the cost-effectiveness of energy savings by upgrading technologies or by taking in-house actions to minimize energy consumption. The scheme provides mandatory targets for the identified Large Units and the excess energy saved by them is issued…
17 July, 2021
Energy crisis & security
Shipping sector UPSC Ministry of Shipping was formed in 2009. India has a coastline of 7517 km, spread on the western and eastern shelves of the mainland and also along the Islands. There are 12 major ports and 200 non-major ports. 12 Major Ports (PT Pointers) Kolkata Port is the only major riverine major port in India. Paradip Port is the 1st major port in East India after independence. Chennai Port is an artificial harbour. Vishakhapatnam port is a Natural harbour. Sagarmala The major economies of the world have always realised the potential of shipping as a contributor to economic…
20 July, 2021
Ports
The government has encouraged setting up Ethanol plants The entrepreneurs/project proponents are free to set up ethanol plants in any part of the country without seeking any formal approval from the Government of India. However, various statutory clearances from States/ Ministry of Environment Forest and Climate Change (MoEF&CC)/State Pollution Control Boards (SPCBs), etc. are required to be obtained during the course of setting up of the ethanol plant. Besides, DFPD is implementing a scheme for extending interest subvention @ 6% p.a. or 50% of the interest charged by the banks whichever is lower, for 5 years including 1 year moratorium…
20 July, 2021
Energy
Initiatives for the MSME sector in India The Ministry of MSME implements various schemes and programmes for the growth and development of the MSME Sector in the country. These schemes and programmes include the Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS). Revamped Scheme of Fund for Regeneration of Traditional…
20 July, 2021
MSME
Every scheme for Employment generation in India The government of India has taken a number of initiatives for promoting employment generation in the country during the corona pandemic. 1) Financial package Financial package of more than rupees twenty seven lakh crore under “Aatma Nirbhar Bharat” has been launched interalia, to create employment opportunities for migrant workers, workers of organized and unorganized sectors, strengthen of MSME sector and promote the rural economy. It includes a number of initiatives for all these sectors. 2) Aatmanirbhar Bharat Rojgar Yojana (ABRY) Aatmanirbhar Bharat Rojgar Yojana (ABRY) has been launched w.e.f. 1st October 2020 to incentivize…
20 July, 2021
Employment
Government launches “Madhukranti portal” and “Honey Corners” of NAFED Union Agriculture Minister has launched the “MadhuKranti portal” and “Honey Corners” of NAFED. MadhuKranti portal: It is an initiative of the National Bee Board under the National Beekeeping and Honey Mission. It is developed for online registration to achieve a traceability source of Honey and other beehive products on a digital platform. The portal will enable the consumers/public to know about the source of honey and assure the quality of the products. National Beekeeping & Honey Mission (NBHM) National Beekeeping & Honey Mission(NBHM) was launched by the Ministry of Agriculture and Farmers Welfare as…
11 April, 2021
Allied agriculture activities
Bad Bank launched for stressed assets as a measure to clean up bank books What is a ‘bad bank’? A bad bank is a financial entity set up to buy non-performing assets (NPAs), or bad loans, from banks. The aim of setting up a bad bank is to help ease the burden on banks by taking bad loans off their balance sheets and get them to lend again to customers without constraints. After the purchase of a bad loan from a bank, the bad bank may later try to restructure and sell the NPA to investors who might be interested…
20 July, 2021
Banking
How do boost indigenous capacities in Defense production? The Government has taken several policy initiatives and brought in reforms to promote indigenisation and self-reliance in defence manufacturing, under AatmaNirbhar Bharat Mission in the defence sector. Important policy initiatives are as under:- Positive Indigenisation List: Ministry of Defence has notified a ‘First Positive Indigenisation list’ of 101 items on 21st August 2020 and a ‘2nd Positive Indigenisation list’ of 108 items on 31st May, 2021 for which there would be an embargo on the import beyond the timelines indicated against them. This is a big step to promote indigenisation in the…
20 July, 2021
Defense industry
Navigating the Rupee depreciation The rupee has been falling and recently, the rupee fell sharply by 105 paise. It is considered as one of the biggest single-session falls in 20 months. Currently, the rupee stands at 74.47 against the US dollar. Reasons for Rupee Depreciation A combination of factors are responsible for rupee depreciation, such as Concerns over Covid-19 has created uncertainty in the market. This affected the FDI(Foreign Direct Investment) and FII(Foreign Institutional Investment). So the rupee weakens further. RBI’s Government Securities Acquisition Programme (G-SAP) that seeks to buy bonds worth Rs 1 lakh crore might be one of the reasons. It is…
10 April, 2021
Rupee Depreciating
Cabinet Approves Subsidy scheme for Merchant Shipping Cabinet has recently approved a scheme for the promotion of merchant ships in India by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs. Key features of the scheme: The scheme will provide Rs.1624 crore over five years as a subsidy to Indian Shipping companies in global tenders floated by Ministries and CPSEs for the import of government cargo. The subsidy support varies from 5% to 15% of the lowest bid by a foreign shipping company. This depends on whether the ship was flagged after or before February…
16 July, 2021
Infrastructure
India’s first Green Hydrogen Mobility Project at Leh Leh is soon to become India's first city to implement a green hydrogen-based mobility project with zero emission. NTPC, Maharatna PSU under the Ministry of Power signed an MoU with UT of Ladakh and LAHDC to set up the country’s first Green Hydrogen Mobility project, strengthening PM Shri Narendra Modi’s vision to ensure a carbon-free economy based on renewable sources and green hydrogen. REL, a 100% subsidiary of NTPC, signed an MoU with the Union Territory of Ladakh, today, to set up the country’s first green Hydrogen Mobility project in the region.…
13 July, 2021
Renewable energy
NTPC to set up India’s single largest solar park at Rann of Kutch NTPC Renewable Energy Ltd, a 100% subsidiary of NTPC, has received the go-ahead from the Ministry of New and Renewable Energy (MNRE) to set up a 4750 MW renewable energy park at Rann of Kutch in Khavada, Gujarat. This will be India’s largest solar park to be built by the largest power producer in the country. NTPC Renewable Energy Ltd (NTPC REL), has been given the go-ahead by MNRE on 12th July 2021 under Mode 8 (Ultra Mega Renewable Energy Power Park) of Solar Park Scheme. NTPC…
14 July, 2021
Renewable energy
PM Garib Kalyan Anna Yojana (PMGKAY): Critical Analysis Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is a scheme as part of Atmanirbhar Bharat to supply free food grains to migrants and poor. Under this special scheme (PMGKAY), around 80 Crore NFSA beneficiaries covered under both categories of NFSA, namely Antyodaya Anna Yojana (AAY) and Priority Householders (PHH), will be provided with an additional quota of free-of-cost foodgrains (Rice/Wheat) at a scale of 5 Kg per person per month, over and above their regular monthly entitlements under NFSA. Government of India will bear all expenditure of over ?26,000 Crore on account…
14 July, 2021
Food security
Fertilizer Industry in India The Fertilizer Industry in India is 1 of the 8 core industries. Fertilizer has the minimum share in the Index of Core Industries. India is the 2nd largest consumer of Urea fertilizers after China. India also ranks 2nd in the production of nitrogenous fertilizers and 3rd in phosphatic fertilizers. Potash requirement is met through imports since we have limited reserves of potash. There are 2 types of Fertilizers Primary Fertilizers: classified on the basis of nutrients they supply to the soil like N:P:K: Nitrogenous (Urea), Phosphatic (di-ammonium phosphate - DAP) and Potassic (muriate of potash (MOP) fertilizers. Secondary Fertilizers includes Calcium, Magnesium and Sulphur. Micronutrients include Iron, Zinc, Boron, Chloride etc. ??????? Fertilizer subsidy (Food…
22 December, 2021
Industry
40th Foundation Day of NABARD What is NABARD? NABARD is a development bank focussing primarily on the rural sector of the country. It is the apex banking institution to provide finance for Agriculture and rural development. Its headquarter is located in Mumbai. It is responsible for the development of small industries, cottage industries, and any other such village or rural projects. It is a statutory body established in 1982 under Parliamentary act-National Bank for Agriculture and Rural Development Act, 1981. Functions of NABARD NABARD’s initiatives are aimed at building an empowered and financially inclusive rural India through specific goal-oriented departments…
14 July, 2021
Banking
Copyright (Amendment) Rules, 2021 In India, the copyright regime is governed by the Copyright Act, 1957 and the Copyright Rules, 2013. The amendments have been introduced with the objective of bringing the existing rules in parity with other relevant legislations. New Provisions: The amendments have harmonised the Copyright Rules with the provisions of Finance Act, 2017 whereby the Copyright Board has been merged with Appellate Board. To reinforce transparency in working of copyright societies a new rule has been introduced, whereby the copyright societies will be required to draw up and make public an Annual Transparency Report for each financial…
08 April, 2021
IPR (Intellectual Property Rights)
Chenab Bridge- Final Arch Closure Completed Recently, Indian Railways completed the arch closure of the iconic Chenab Bridge in Jammu & Kashmir. Key Highlights It is the world's highest railway bridge and is part of the Udhampur-Srinagar-Baramulla rail link project (USBRL). The Project was declared as a Project of National Importance in March 2002. This bridge is 1,315-metre long and is the highest railway bridge in the world being 359 metres above the river bed level. The completion of the steel arch is a major leap towards the completion of the 111 km long winding stretch from Katra to Banihal. It is arguably the biggest civil-engineering challenge faced by any railway project in…
07 April, 2021
Infrastructure
National Fish Farmers Day The National Fisheries Development Board celebrated the National Fish Farmers Day virtually. The National Fish Farmers day is observed every year to demonstrate solidarity with all fisher folk, fish farmers and concerned stakeholders throughout the Country. This annual event is celebrated to commemorate Professor Dr. Hiralal Chaudhury and his colleague Dr. Alikunhi for their contribution in achieving the successful induced breeding of major carps on 10th July,1957 at Angul in Odisha for the first time in the country. This pioneering work of induced breeding over the years has transformed the growth of the aquaculture sector from…
11 July, 2021
Fisheri
India’s First Private LNG Facility plant opened at Nagpur Minister for Road Transport and Highways Shri Nitin Gadkari has emphasized the importance of alternate biofuels for diversification of agriculture towards the energy and power sector. Inaugurating the country’s first Private LNG Facility plant at Nagpur today he said in our economy we are spending 8 lakh crores on the import of petrol diesel and petroleum products which is a big challenge. The Minister said we have designed a policy that encourages the development of imports to substitute cost-effective pollution-free and indigenous ethanol, bio CNG, LNG and hydrogen fuels. He said…
12 July, 2021
Renewable energy
Modernization plan of Central Warehouse Corporation Recently Min of Food Supplies talked about modernizing Central Warehousing Corporation and improving its storage capacities. Other modernizing aspects that were talked about were: doubling its warehouse storage capacity by end of the year 2023 and achieving a turnover of Rs 10000 crore tariff rationalization and setting of warehouses should be done independently by CWC without any bureaucratic interference He said that maximum powers of decision-making for operations should be delegated to the CWC. He also asked CWC to focus on building cold chain storage in the country on a priority basis. Safety Audit…
06 April, 2021
Food security
92% of Projects under PMAY-G Completed Under the Pradhan Mantri Awaas Yojana – Gramin (PMAY-G), 92% target of completion has been achieved in the 1st phase of the scheme i.e. from 2016-17 to 2018-19 with intended beneficiaries also coming down from 2.95 cr to 2.14 cr due to duplication and other incidences. Rural Housing In India The public housing programme in the country started with the rehabilitation of refugees immediately after independence and since then, it has been a major focus area of the Government as an instrument of poverty alleviation. The rural housing programme, as an independent programme, started with…
06 April, 2021
Housing sector
Increased FDI Inflows in FY 2020-21 India has attracted the highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion). FDI equity inflow grew by 19% in the F.Y. 2020-21 (US$ 59.64 billion) compared to the previous year F.Y. 2019-20 (US$ 49.98 billion). In terms of top investor countries, Singapore is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for the F.Y. 2020-21. ‘Computer Software & Hardware’ has emerged as the top sector during F.Y. 2020-21…
05 April, 2021
FDI and recent rules
RBI gives Rs. 99,122 crore surplus to the Government The Reserve Bank of India’s board approved a significantly higher-than-expected surplus transfer to the government on Friday but it may not be enough to cushion the damage from a crippling second wave of the novel coronavirus. The surplus distribution policy of the RBI is determined in accordance with Section 47 of the RBI Act, 1934. The RBI announced a surplus transfer of ?99,122 crore for the 9-month period from July 2020 to March 2021, the central bank said in a statement. The bank will move to an April to March accounting…
22 May, 2021
RBI
What is Agriculture Infrastructure Fund? Cabinet gave its approval to the following modifications in the Central Sector Scheme of Financing Facility under the ‘Agriculture Infrastructure Fund’: Eligibility has now been extended to State Agencies/APMCs, National & State Federations of Cooperatives, Federations of Farmers Producers Organizations (FPOs) and Federations of Self Help Groups (SHGs). At present Interest subvention for a loan up to Rs. 2 crore in one location is eligible under the scheme. In case, one eligible entity puts up projects in different locations then all such projects will now be eligible for interest subvention for loans up to Rs.…
22 December, 2021
Agriculture
COVID-19 Package Phase II Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi today has approved a new scheme ‘India COVID-19 Emergency Response & Health System Preparedness Package: Phase-II’ amounting to Rs. 23,123 crores for FY 2021-22 from 01" July 2021 to 31" March 2022 with central and state share as under: Central Share of the ECRP-II –Rs.15,000 crore State Share of the ECRP-II –Rs.8,123 crore This scheme aims to accelerate health system preparedness for immediate responsiveness for early prevention, detection and management, with the focus on health infrastructure development including for Paediatric Care and with measurable outcomes. The Phase-II…
09 July, 2021
Economic reforms
Personal guarantors liable for corporate debt Insolvency and Bankruptcy Code, 2016 It deals with debt default of companies and limited liability entities, partnership firms and individuals. It was based on T K Vishwanathan Committee on Bankruptcy Law Reforms Committee (BLRC) in 2014. It proposes a framework to ensure early detection of stress in a business, initation of the insolvency resolution process by the debtor, financial creditor or operational creditor; the liquidation of unviable business and avoiding the destruction of the value of the failed business. The Code separates commercial aspects of the insolvency proceedings from judicial aspects. IPs will deal…
22 May, 2021
NPA
Schemes for Solar Energy PM KUSUM SCHEME: (MNRE) Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme. For installation of solar pumps and grid connected solar and other renewable power plants in the country. The scheme aims to add solar and other renewable capacities of 25,750 MW by 2022. It consists of 3 components 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants of individual plant size up to 2 MW. Installation of 17.5 lakh standalone Solar Powered Agri Pumps of individual pump capacity up to 7.5 HP. Solarisation of 10 Lakh Grid-connected Agriculture Pumps of individual pump capacity up to 7.5 HP. Implementation by State Nodal Agencies(SNAs) of MNRE. The scheme will open a stable…
08 July, 2021
Renewable energy
Goods and Service Tax - UPSC Analysis What is Goods and Service Tax? Through 101st Amendment Act guided by Art 301 Govt introduced GST (Goods and Service Tax) includes both Goods and Services Art 279 A is introduced to make GST workable. Enforced from 1 July 2017. Exceptions Except for Alcohol and Electricity, all items included. 5 Petroleum products are temporarily out of Goods and Service Tax (to control losses to the State): Crude Oil, petrol, diesel, ATF and Natural Gas. GST Council Constitutional Body. Responsible for Tax rates, a listing of items and any dispute resolution among States and…
18 January, 2022
Tax
Matsya Setu App and Fisheries sector The app was developed by the ICAR-Central Institute of Freshwater Aquaculture (ICAR-CIFA), Bhubaneswar, with the funding support of the National Fisheries Development Board (NFDB), Hyderabad. The online course app aims to disseminate the latest freshwater aquaculture technologies to the aqua farmers of the country. Matsya Setu app has species-wise/ subject-wise self-learning online course modules, where renowned aquaculture experts explain the basic concepts and practical demonstrations on breeding, seed production and grow-out culture of commercially important fishes like carp, catfish, scampi, murrel, ornamental fish, pearl farming etc. Better Management Practices to be followed in maintaining…
07 July, 2021
Allied agriculture activities
Electoral Bonds in recent Assembly Elections As per the scheme, Electoral bonds mean a bond issued in the nature of a promissory note which is a bearer banking instrument not carrying the name of the buyer or payee. They are used for making donations to political parties. Govt launched it on 2 Jan 2018. They are issued by Scheduled Commercial Banks upon authorisation from Central Govt (not RBI) to donor, but only against cheque and digital payments (not cash). They are redeemable in a registered political party. Amendments to RBI Act, 1934 and RPA, 1951 were made through Finance Bill, 2017. It is an interest-free banking instrument issued on a non-refundable basis and is not…
19 May, 2021
Banking
APEDA (Agri and Processed Food Export Development Authority), 1985 It is a statutory body under APEDA Act, 1985. It functions under Commerce Ministry. Functions Export promotion and development of scheduled products like fruits, vegetables, meat, poultry, dairy, confectionary, biscuits, bakery, honey, jaggery, floriculture, etc. by giving them financial assistance, and surveys. Responsibility to monitor the import of Sugar. It registers persons as exporters of scheduled products and fixes standards and specifications. It also carries out inspection of meat.
27 May, 2021
Agriculture
Nilesh Shah committee on International Financial Services Center (IFSC) IFSC seeks to bring in India, those types of financial services and transactions that are currently carried on outside India by overseas FIs and overseas branches of Indian FI subsidiaries. It is also designated as a ‘deemed foreign territory’ which would have the same ecosystem as other offshore locations but is physically on Indian soil. SEZ Act provides for the establishment of an IFSC in India within an SEZ in India and enables the Central Govt to regulate IFSC activities. SEBI, RBI, IRDAI and Dept of Financial Services issued the regulations for IFSC-GIFT under the provisions of SEZ Act, 2005. Gujarat International Finance Tec-City Co. Ltd (GIFT) is being developed…
25 May, 2021
Investment
Gold Hallmarking in India The government said that it is fully prepared to implement the mandatory hallmarking of gold jewellery and artefacts from June 15, 2021. What is Gold hallmarking? Gold hallmarking is a purity certification of precious metal. At present, It is voluntary in nature. Gold Hallmarking in India: In 2019, the Government announced that hallmarking of gold jewellery and artefacts will be made mandatory across the country. The government had given jewellers more than a year to shift to hallmarking and register themselves with the Bureau of Indian Standards (BIS). Key Features of Gold Hallmarking: Hallmarked gold jewellery…
24 May, 2021
Gold investment
Khelo India Programme It is a Central Sector Scheme with 12 components and achieves twin objectives of National Youth Policy, 2001: broad basing sports and achieving excellence in sports. It was introduced to revive the sports culture in India at the grass root level. Talented players will be given annual financial assistance of Rs. 5 lakh/ year for 8 years. It was launched after merging Rajiv Gandhi Khel Abhiyan, Urban Sports Infra Scheme (USIS) and National Sports Talent Search System Programme. 12 components include Community coaching, annual sports competition, State level centers, sports infra, physical fitness, women, PwD, peace and development and indigenous/…
22 May, 2021
Sports
Sovereign Gold Bond Scheme Sovereign Gold Bonds This scheme is for those individuals who intend to purchase gold for investment. These bonds are issued by RBI on behalf of Govt on payment of Rs denominated in gms of Gold. The interest is not fixed (unlike G-secs): given the prevailing price of Gold. Like G-secs, they are backed by a Sovereign guarantee. Gold Monetization Scheme, 2015 The scheme was launched in November 2015 along with sovereign gold bonds and Indian gold coins. It facilitates the depositors of gold to earn interest on their metal accounts. Once the gold is deposited in the metal account, it…
27 November, 2021
Gold investment
Self-sufficiency in Edible Oils To achieve self-sufficiency in the production of oilseeds, the Ministry of Agriculture and Farmers Welfare has adopted a multi-pronged strategy. Under the strategy, the Government of India has approved an ambitious plan for the free distribution of high yielding varieties of seeds to the farmers for the Kharif season 2021 in the form of mini-kits. The special Kharif programme will bring an additional 6.37 lakh hectare area under oilseeds and is likely to produce 120.26 lakh quintals of oilseeds and edible oil amounting to 24.36 lakh quintals. Both area and productivity enhancement has been formulated for…
20 May, 2021
Agriculture reforms
Fertilizer Industry in India It is 1 of the 8 core industries. Fertilizer has the minimum share in the Index of Core Industries. India is the 2nd largest consumer of Urea fertilizers after China. India also ranks 2nd in the production of nitrogenous fertilizers and 3rd in phosphatic fertilizers. Potash requirement is met through imports since we have limited reserves of potash. There are 2 types of Fertilizers Primary Fertilizers: classified on the basis of nutrients they supply to the soil like N:P:K: Nitrogenous (Urea), Phosphatic (di-ammonium phosphate - DAP) and Potassic (muriate of potash (MOP) fertilizers. Secondary Fertilizers includes Calcium, Magnesium and Sulphur. Micronutrients include Iron, Zinc, Boron, Chloride etc. Fertilizer subsidy (Food > Fertilizer > Petroleum…
19 May, 2021
Economic reforms
NIPUN Bharat NIPUN stands for National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN Bharat) The vision of NIPUN Bharat Mission is to create an enabling environment to ensure the universal acquisition of foundational literacy and numeracy, so that every child achieves the desired learning competencies in reading, writing and numeracy by the end of Grade 3, by 2026-27. NIPUN Bharat will be implemented by the Department of School Education and Literacy and a five-tier implementation mechanism will be set up at the National- State- District- Block- School level in all States and UTs, under the aegis of…
30 November, 2021
Education
GST council to convene on May 28 Goods and Service Tax – GST (Indirect Tax) Through 101st Amendment Act guided by Art 301 Govt introduced GST includes both Goods and Services Art 279 A is introduced to make GST workable. Enforced from 1 July 2017. Exceptions Except Alcohol and Electricity all items included. 5 Petroleum products are temporarily out of GST (to control losses to the State): Crude Oil, petrol, diesel, ATF and Natural Gas. GST Council Constitutional Body. Responsible for Tax rates, listing of items and any dispute resolution among States and provide participation of all States and UTs.…
16 May, 2021
Tax
PM Kisan Samman Nidhi Yojana About PM Kisan Samman Nidhi Yojana PM KISAN is an initiative by the Government of India to which all farmers will get up to. 6,000 per year as minimum income support. The Scheme is in effect from 01.12.2018. The scheme was officially launched on 24th February 2019. It was announced in the 2019 Interim Budget. The scheme has a cost? 75,000 crore per annum. It is a new Central Sector Scheme. History of PM KISAN Scheme The scheme was first conceived and implemented by Government of Telangana as the Rythu Bandhu scheme, where a certain…
25 February, 2022
Agriculture
Center asks States to impose a limit on stocking of Pulses In an attempt to arrest the spiralling prices of pulses, the Union government on Friday directed the States to impose a stock limit on all pulses except moong till October 31. The Department of Consumer Affairs issued the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 prescribing the limits which have been imposed with immediate effect. The stock limit of 200 tonnes has been imposed on wholesalers provided they do not hold more than 200 tonnes of one variety of pulses. On…
03 July, 2021
Procurement
POSHAN Abhiyan, 2018 It is a flagship programme of the Ministry of Women and Child Development launched from Jhunjhunu in Rajasthan. It is a multi-ministerial convergence mission initiated after NITI recommendations to reduce the problem of Malnutrition. Govt is implementing several schemes under ICDS as direct target intervention. Provisions Aim is to generate Jan Andolan towards Nutrition. Use of technology, Reduce stunting, Under nutrition, Anaemia, Low birth weight, focus on Adolescent girls and P&LW. It ensures convergence with various programs like Anganwadi Services, PM Matru Vandana Yojana, Scheme for Adolescent Girls, NHM, Swach Bharat Mission, PDS, MGNREGA etc. Goals = It is a comprehensive approach to improve nutritional…
03 September, 2021
Malnourishment
Commerce Ministry’s Logistics Division unveils plans for ‘Freight Smart Cities’ Need for Freight Smart Cities With growing urbanisation, requirements of rapid economic growth including e-commerce and associated first and last mile freight movements; increasing congestion, noise and sound pollution in the Indian cities is a menace affecting both public health and local economies. The Logistics Division under the Ministry of Commerce and Industry has decided to work in a planned manner to improve the city freight movement. This is all the more relevant as the demand for urban freight is expected to grow by 140 per cent over the next…
03 July, 2021
Infrastructure
Sovereign Gold Bonds This scheme is for those individuals who intend to purchase gold for investment. These bonds are issued by RBI on behalf of Govt on payment of Rs denominated in gms of Gold. The interest not fixed (unlike G-secs): given on the prevailing price of Gold. Like G-secs, they are backed by a Sovereign guarantee. Gold Monetization Scheme, 2015 The scheme was launched in November 2015 along with sovereign gold bonds and India gold coins. It facilitates the depositors of gold to earn interest on their metal accounts. Once the gold is deposited in a metal account, it starts earning interest on…
12 May, 2021
Gold investment
IREDA bags “Green Urja Award” Indian Renewable Energy Development Agency Ltd. IREDA has been conferred with the “Green Urja Award” for being the Leading Public Institution in Financing Institution for Renewable Energy this year by the Indian Chamber of Commerce (ICC). The award was received by Shri Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA from Dr Ajay Mathur, Director General, International Solar Alliance in presence of Shri Anil Razdan, Chairman, ICC National Expert Committee on Energy in a virtual ceremony. IREDA gets the award for the pivotal and developmental role it plays in Green Energy Financing. IREDA under…
11 May, 2021
Renewable energy
Strengthening domestic Agarbatti industry National Bamboo Mission has launched an MIS (Management Information Systems) based reporting platform for agarbatti stick production to collate the locations of stick making units, availability of raw material, functioning of the units, production capacity, marketing, etc. With the help of this module, the linkages with the industry will be synergised better to enable seamlessly procurement from production units and information gaps can be plugged. All NBM States are in the process of documenting all the units to assess better how further support can be given for ‘Vocal for Local’ and ‘Make for the World’ since…
11 May, 2021
Allied agriculture activities
Horticulture sector: Critical Analysis The mission for Integrated Development of Horticulture (MIDH) L.H. Bailey is considered the Father of American Horticulture and M.H. Marigowda is considered the Father of Indian Horticulture. It is a part of Green Revolution – Krishonnati Yojana which is Umbrella Scheme in agriculture sector since 2016-17 by clubbing 11 schemes. Centrally Sponsored Scheme. 85:15 in all States except Northeast and Himalayan States where it is 100% by States. For holistic growth of the Horticulture sector; enhance Horticulture production, improve nutritional security and income support. MIDH adopts an end-to-end holistic approach i.e. Pre-production, Production, Post-harvest management and Processing and marketing. Promote R&D in the above fields (especially cold chain infrastructure) Promote…
10 May, 2021
Allied agriculture activities
Special Kharif Strategy for self-sufficiency in Pulses Progress until now From a meagre production of 14.76 million tonnes in 2007-08, the figure has now reached 24.42 million tonnes in 2020-2021 (2nd advance estimates) which is a phenomenal increase of65%. This success is largely attributed to several significant interventions at the central level. The Government has consistently been focussing on bringing new areas under pulses along with ensuring that productivity is also increased in the existing areas under cultivation. Therefore, the production and productivity of pulses must be further sustained and increased through the approach of both horizontal and vertical expansion.…
07 May, 2021
Agriculture
India’s Merchandise Trade Data, May 2021 India’s merchandise exports in May 2021 was USD 32.21 billion, an increase of 67.39% over May 2020 and an increase of 7.93% over May 2019 India’s egg :merchandise imports in May 2021 was USD 38.53 billion, an increase of 68.54% over May 2020 and a decline of 17.47% over May 2019 Value of non-petroleum and non-gems and jewellery exports in May 2021 was USD 23.97 billion, a positive growth of 45.96% over May 2020 and a positive growth of 11.51% over May 2019 Non-oil, non-GJ imports was USD 26.14 billion in May 2021, a positive growth of 41.32% over May 2020…
29 June, 2021
Economic Data
India’s export of organic food products India’s export of organic food products rose by more than 51% to Rs 7078 crore ($ 1040 million) during April-February (2020-21) compared to the same period in the previous fiscal (2019-20). In terms of quantity, the exports of organic food products grew by 39% to 888,179 metric tonne (MT) during April-February (2020-21) compared to 638,998 MT shipped in April- February (2020-21). The growth in organic products have been achieved despite logistical and operational challenges posed by the COVID19 pandemic. Oil cake meal is a major commodity of the organic product exports from the country…
27 June, 2021
Agriculture
Index of eight core industries The eight core sector industries include coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity. The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers. Industry Weight (In percentage) Petroleum & Refinery production 28.04 Electricity generation 19.85 Steel production 17.92 Coal production 10.33 Crude Oil production 8.98 Natural Gas production 6.88 Cement production 5.37 Fertilizers production 2.63 The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). Index of Industrial Production (IIP) The Index of Industrial Production (IIP) is…
01 January, 2022
Economic Data
BharatNet project Cabinet accorded approval for revised implementation strategy of BharatNet through Public Private Partnership mode in 16 States of the country. BharatNet will now extend upto all inhabited villages beyond Gram Panchayats (GPs), in the said States. The revised strategy also includes creation, upgradation, operation, maintenance and utilization of BharatNet by the concessionaire who will be selected by a competitive international bidding process. The estimated maximum viability gap funding approved for the above PPP model is Rs. 19,041 crores. The States covered under the Cabinet approval today are Kerala, Karnataka, Rajasthan, Himachal Pradesh, Punjab, Haryana, Uttar Pradesh, Madhya Pradesh,…
01 July, 2021
Telecom sector
Cabinet approves strategic disinvestment of IDBI Bank Limited About Disinvestment Disinvestment refers to sale or liquidation of an assets or subsidiary of an organization or government but any condition Govt share should not go below 51%. It is done by Dept of Investment and Public Asset Management (DIPAM), Ministry of Finance from 2016. Industrial Policy Resolution,1956 talks about the growth of the country through PSUs. Hence, from 2nd Five Year Plan we started focusing on PSEs. Salient Features of Disinvestment Policy PSUs are wealth of Nation and it ensures that wealth rests in hands of people, promote public ownership of CPSEs. Govt must retain at least 51% of shareholding and management control of…
05 May, 2021
Economic reforms
Goods and Service Tax Through 101st Amendment Act guided by Art 301 Govt introduced GST includes both Goods and Services Art 279 A is introduced to make GST workable. Enforced from 1 July 2017. Exceptions Except Alcohol and Electricity all items included. 5 Petroleum products are temporarily out of GST (to control losses to the State): Crude Oil, petrol, diesel, ATF and Natural Gas. GST Council Constitutional Body. Responsible for Tax rates, listing of items and any dispute resolution among States and provide participation of all States and UTs. Headed by FM. Represented by FM of States. Vice Chairperson from…
03 May, 2021
Tax
PM Formalisation of Micro food processing Enterprises (PMFME) Scheme Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000…
29 October, 2021
Food processing industry
What is Electoral Bonds Scheme? As per the scheme, Electoral bonds mean a bond issued in the nature of a promissory note which is a bearer banking instrument not carrying the name of the buyer or payee. They are used for making donations to political parties. Govt launched it on 2 Jan 2018. They are issued by Scheduled Commercial Banks upon authorisation from Central Govt (not RBI) to the donor, but only against cheques and digital payments (not cash). They are redeemable in a registered political party. Amendments to RBI Act, 1934 and RPA, 1951 were made through Finance Bill, 2017. It is an interest free banking instrument issued on a non-refundable basis and…
30 September, 2021
Banking
Pilot Scheme on Fortification of Rice & its distribution under PDS To address anemia and micro-nutrient deficiency in the country, the Centre has expedited capacity of the fortification of rice to increase from 15,000 MT to 3.5 lakh MT by incentivising and creating awareness among rice millers. This scheme is for a period of 3 years beginning in 2019-20 with a total outlay of Rs 174.64 Crore. NITI Aayog also in its “Strategy for new INDIA @75” has put suggested a mandatory fortification of staples and incorporating fortified food grains in Government programmes, TPDS (NFSA) ICDS, Mid-day Meal Scheme (MDM)…
30 June, 2021
Malnourishment
What is the Minimum Support Price (MSP)? MSP is a form of market intervention by Center to insure agricultural producers against any sharp fall in farm prices (especially in bumper production years). They are announced at the beginning of the sowing season for certain crops on the basis of the recommendations of Commission for Agricultural Costs and Prices (CACP). The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. In case the market price < MSP due to bumper production and glut in the market, Center purchases everything at MSP. How many Commodities are included in MSP? MSP are currently announced for 24 commodities (7C + 5P + 8O…
23 December, 2021
MSP
Energy Efficiency Schemes in India The Ministry of Power is implementing measures to save energy with an objective to reduce CO2 emission levels in the environment from industries, establishments and by using equipment/ appliances. In this regard, Perform Achieve and Trade (PAT) Scheme is a key programme for large industries and establishments. Perform Achieve and Trade (PAT) Scheme This scheme aims to enhance the cost-effectiveness of energy savings by upgrading technologies or by taking in-house actions to minimize energy consumption. The scheme provides mandatory targets for the identified Large Units and the excess energy saved by them is issued as…
10 June, 2021
Energy crisis & security
Defence Corridors in India In pursuance to the budget announcement (2018-19), it has been decided to set up two Defence Industrial Corridors in the Country, one in Uttar Pradesh and another in Tamil Nadu. Subsequently, six nodes in Uttar Pradesh Defence Corridor viz. Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow have been identified. Similarly, for Tamil Nadu Defence Corridor, five nodes viz. Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli have been identified. Investments of approximately Rs 3,700 crore were announced by Ordnance Factory Board (OFB/Defence Public Sector Undertakings (DPSUs) & Private Industries for Uttar Pradesh Defence Corridors and investment of approx…
09 June, 2021
Defense industry
Operation Pangea XIV by Interpol on fake medicines More than 1.1 lakh web links, including websites and online marketplaces, have been taken down in an operation involving the police, customs and health regulatory authorities of 92 countries against the sale of fake and illicit medicines and medical products. Code-named “Operation Pangea XIV”, the exercise was coordinated by Interpol. Indian agencies also participated in the operation, said an official of the Central Bureau of Investigation is the nodal body for Interpol in the country. The operation resulted in 1,13,020 web links being closed down or removed, the largest since the first…
09 June, 2021
Pharmaceutical
Plan for India to become Atmanirbhar in Phophatic fertilizers (DAP and NPK) Department of Fertilisers is ready with an Action Plan to make India Aatmanirbhar in Rock Phosphate, the key raw material of DAP and NPK Fertilisers. An Action Plan was chalked out for making India Aatmanirbhar in fertiliser production through indigenous resources. India is going to commercially exploit and ramp up the production in the existing 30 lakh MT of Phosphorite deposits which are available in Rajasthan, the central part of peninsular India, Hirapur(MP), Lalitpur(UP), Mussoorie syncline, Cuddapah basin(AP). Discussion and planning with the Department of Mining and Geological…
29 June, 2021
Economic reforms
What is Disinvestment? Disinvestment refers to the sale or liquidation of assets or subsidiaries of an organization or government but any condition Govt share should not go below 51%. It is done by Dept of Investment and Public Asset Management (DIPAM), Ministry of Finance from 2016. Industrial Policy Resolution,1956 talks about the growth of the country through PSUs. Hence, from 2nd Five Year Plan we started focusing on PSEs. Salient Features of Disinvestment Policy PSUs are wealth of Nation and it ensures that wealth rests in hands of people, promote public ownership of CPSEs. Govt must retain at least 51% of shareholding and management control of PSUs. Strategic disinvestment by way of sale of…
30 November, 2021
Economic reforms
20 Defense Reforms in 2020 What is the news? Raksha Mantri Shri Rajnath Singh released an E-booklet titled ’20 Reforms in 2020’, highlighting the major reforms undertaken by Ministry of Defence (MoD) in 2020. The compilation provides a brief overview of defence reforms undertaken in the year 2020 by MoD to bring about greater cohesion and modernisation of the Armed Forces through policy changes, innovation and digital transformation. Reforms also focused on the ‘AatmaNirbhar Bharat’ initiative of Prime Minister Shri Narendra Modi; increased collaboration with the industry to boost defence exports; measures to accelerate defence acquisitions with greater transparency; digital…
08 June, 2021
Defense industry
Labour Reforms Context: Labour is an important topic of UPSC GS Paper II and Paper III in Mains Examination. Recent Labour Codes are highly important even for Essay. Labour is in the Concurrent List in Schedule 7 of the Constitution. Hence, both the Parliament and the state legislatures can enact laws on it. Before the new labour codes were passed, there were more than 40 central laws and more than 100 state laws on labour and related matters. The Second National Commission on Labour (2002) recommended that the central labour laws should be integrated into groups like: Industrial relations, Wages, Social…
07 June, 2021
Labour
Punjab, T.N. and Kerala top education index ranking Punjab, Tamil Nadu and Kerala have all scored higher than 90% in the Education Ministry’s Performance Grading Index for 2019-20, which was released. Gujarat dropped from second to the eighth rank in the index, while Madhya Pradesh and Chhattisgarh are the only States which have seen actual regression in scores over this period. The index monitors the progress that the States and Union Territories have made in school education with regard to learning outcomes, access and equity, infrastructure and facilities, and governance and management processes. Punjab recorded the highest score of almost…
07 June, 2021
Education
Schemes for Fisheries sector in India Need for safeguarding the Aquatic ecosystem? The sustainability and conservation of our aquatic ecosystem which constitutes of various freshwater habitats, with oceans and seas covering more than 70 per cent of the Earth, has gained a lot of attention in recent times at national and international forums. It also underpins key economic sectors, such as fisheries and tourism. However, today these habitats are constantly facing huge threats from various actors. As predicted by eminent scientists and practitioners across the world, millions of tonnes of our plastic waste released into these habitats by humans are…
06 June, 2021
Allied agriculture activities
GST collections in May dropped to the lowest level since September 2020 India’s Gross GST revenue fell to 1.02 lakh crore in May, from a record 1.41 lakh crore in April, but the number was likely to be revised upwards, the government said. The May collections, broadly pertaining to transactions in April, are the lowest since September 2020, which recorded revenue of 95,480 crores. Economists expect the collections to dip further in June even though the current lockdowns across the States may not be denting activity as much as last year’s national lockdown. Goods and Service Tax – GST (Indirect…
06 June, 2021
Tax
Indian Railways are on way to becoming "Largest Green Railways" in the world with Zero Carbon Emission Indian Railways (IR) is working in mission mode to become the largest Green Railways in the world and is moving towards becoming a “net zero carbon emitter” before 2030. Railways are guided by a holistic vision of being an environment-friendly, efficient, cost-effective, punctual and modern carrier of passengers as well as freight in order to serve the growing needs of New India. IR is looking at helping the environment with steps ranging from massive electrification, and water & paper conservation, to saving animals…
28 June, 2021
Railways
Monetary Policy Committee and Inflation in India What is Inflation? Inflation can be defined as a calculated surge in the average prices of goods and services for a longer duration in the economy. It is a macro concept, wherein the effect of inflation is seen over a large basket of goods. The ultimate effect of inflation is that the value of money is reduced i.e., the purchasing power of money is reduced. Types of Inflation 1) Cost Push Inflation It is caused by rise in the prices of inputs like raw material cost, electricity charges or wage rate (including a rise…
14 September, 2021
Inflation
Dragon Fruit or Kamalam to be exported to Dubai In a major boost to the export of exotic fruit, a consignment of fibre and mineral-rich ‘Dragon Fruit’, also referred to as Kamalam, has been exported to Dubai. A consignment of Dragon Fruit for exports was sourced from the farmers of Tadasar village, Sangli district, Maharashtra and it was processed and packed at APEDA recognized exporter – M/s Kay Bee. Scientifically referred to as Hylocereusundatus, the dragon fruit is grown in countries such as Malaysia, Thailand, the Philippines, the USA and Vietnam. Dragon fruit production commenced in India in the early…
28 June, 2021
Import / Export
PM Garib Kalyan Anna Yojana (PMGKAY): Critical Analysis Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is a scheme as part of Atmanirbhar Bharat to supply free food grains to migrants and the poor. Under this special scheme (PMGKAY), around 80 Crore NFSA beneficiaries covered under both categories of NFSA, namely Antyodaya Anna Yojana (AAY) and Priority Householders (PHH), will be provided with an additional quota of free-of-cost foodgrains (Rice/Wheat) at a scale of 5 Kg per person per month, over and above their regular monthly entitlements under NFSA. Government of India will bear all expenditure of over ?26,000 Crore on…
25 November, 2021
Food security
Tibet gets first bullet train, links Lhasa to India border China started operating the first bullet train line in Tibet, linking Lhasa to Nyingchi near the border with Arunachal Pradesh. The China State Railway Group said the 435-km line, on which construction began in 2014, has a designed speed of 160 km per hour and would connect the capital city of the Tibet Autonomous Region to the border city of Nyingchi with a travel time of three and a half hours. Over 90% of the track is 3,000 metres above sea-level, state media quoted the railway group as saying, and…
26 June, 2021
Railways
Compressed Biogas and SATAT About Biogas Energy is produced from organic waste. Converted into energy by direct combustion or by conversion of such wastages into alcohol, methane, or other storage fuels. Bio-gas is produced naturally through the process of anaerobic decomposition from waste and bio-mass sources like agriculture residue, cattle dung, municipal solid waste, farms, gardens, kitchen waste, night soil waste, sugarcane press mud, sewage treatment plant (STP) waste, etc. It contains 60-65% Methane, 35-40% CO2, 0.5-1% H2S and rest is water vapour. Gases emitted from Biogas = Methane (60-65%), CO2 (35-40%), Hydrogen Sulphide (0.5-1%), Ammonia and the rest is water vapour. National Biogas and Manure Mgt Prog (NBMMP) It is a Central Sector Scheme. Setting up of Family Type Biogas Plants mostly for rural…
02 June, 2021
Energy crisis & security
Sand Sand shall not be treated as a minor mineral when used for any of the following purposes namely; purpose of refractory and manufacturer of ceramic, metallurgical purposes, optical purposes, purposes of stowing in coal mines, for the manufacture of silvicrete cement, manufacture of sodium silicate and manufacture of pottery and glass. Under MMDRA, 1957 Sand is a minor mineral and sand mining is regulated by State Govts. Sand mining is done to extract minerals like Rutile, Ilmenite and Zicron which contain Titanium & Zirconium. According to MMDR Act, 1957 “Minor Minerals” means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed…
02 June, 2021
Mine and minerals
Non-Banking Financial Companies About NBFCs NBFCs are Companies registered under the Companies Act, 1956 engaged in giving loans; acquisition of shares, stocks, bonds, debentures & securities issued by Govt or local authorities; leasing higher purchase insurance, and chit fund business. It holds 12.3% of assets in Financial systems. It does not include any institution whose principal business is Agriculture, Industry, buying or selling of goods other than security or providing any services and sale and purchase constitution of immovable properties. A Non-banking institution which is a Company that can receive deposits in any scheme also comes under NBFCs (Deposit taking NBFCs) aka Residuary Non-Banking Company. It is engaged in…
25 June, 2021
NBFC
Horticulture Cluster Development Programme (CDP) In a pilot phase, the programme will be implemented in 12 horticulture clusters out of the total 53 clusters selected for the programme. A central sector programme implemented by the National Horticulture Board (NHB) of the Ministry of Agriculture and Farmers’ Welfare, CDP aims at growing and developing identified horticulture clusters to make them globally competitive. The programme will address all major issues related to the Indian horticulture sector including pre-production, production, post-harvest management, logistics, marketing and branding. The programme is designed to leverage geographical specialisation and promote integrated and market-led development of horticulture clusters.…
01 June, 2021
Horticulture
IIT Ropar developed AmbiTag Indian Institute of Technology, Ropar (IIT Ropar) in Punjab has developed a first-of-its-kind IoT device – AmbiTag that records real-time ambient temperature during the transportation of perishable products, vaccines and even body organs and blood. That recorded temperature further helps to know whether that particular item transported from anywhere in the world is still usable or perished because of temperature variation. This information is particularly critical for vaccines including Covid-19 vaccine, organs and blood transportation. Shaped as USB device, AmbiTag continuously records the temperature of its immediate surroundings “from -40 to +80 degrees in any time…
01 June, 2021
Food processing industry
5 trapped in the Meghalaya coal mine after a dynamite blast A dynamite blast led to the flooding of a coal mine in the East Jaintia Hills district in Meghalaya, trapping five labourers. Illegal Mining in Meghalaya According to available government data, Meghalaya has a total coal reserve of 640 million tonnes, most of which is mined unscientifically by individuals and communities. In 2011–12, rat-hole mines produced about 10 million tonnes of coal. This large coal production in a small state had a devastating impact on the environment. Some of the areas of Coal mining in Meghalaya are Ksan in…
01 June, 2021
Mine and minerals
Central Railside Warehouse Company merged with Central Warehouse Corporation Taking another step towards implementing the direction of “Minimum Government Maximum Governance” given by the Prime Minister, promoting ease of doing business and bringing private sector efficiencies in Public Sector Undertakings, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved to merge and transfer all assets, liabilities, rights and obligations of ‘Central Railside Warehouse Company Limited’ (CRWC), a Mini-Ratna Category-II Central Public Sector Enterprises (CPSE) incorporated under the Companies Act, 1956 in 2007 with its holding enterprise ‘Central Warehousing Corporation’ (CWC). The merger will unify similar functions…
24 June, 2021
Merger and acquisition
Ordnance Factory Board corporatised About Ordnance Factory Board Ordnance Factory Board (OFB) consisting of the Indian Ordnance Factories is a Government agency under the control of the department of defence production (DDP) Ministry of Defence (MoD), Government of India. It is engaged in research, development, production, testing, marketing and logistics of a product range in the areas of air, land and sea systems. OFB comprises 41 ordnance factories, 9 training institutes, 3 regional marketing centres and 4 regional controllers of safety, which are spread all across the country. Currently, the Kolkata-headquartered OFB functions as a department under the Department of…
17 June, 2021
Defense industry
Illegal Mining in Meghalaya According to available government data, Meghalaya has a total coal reserve of 640 million tonnes, most of which is mined unscientifically by individuals and communities. In 2011–12, rat-hole mines produced about 10 million tonnes of coal. This large coal production in a small state had a devastating impact on the environment. Some of the areas of Coal mining in Meghalaya are Ksan in Meghalaya’s East Jaintia Hills What is a rat hole mine? A rat-hole mine comprises a deep vertical shaft with narrow horizontal tunnels, two to four feet in dimension, dug on its sides. Miners…
17 June, 2021
Mine and minerals
Fertilizer Industry in India CCEA approved the proposal to hike subsidy rates for Phosphorus and Potassium based fertilizers The Cabinet Committee on Economic Affairs has approved the proposal to hike subsidy rates for phosphorus and potassium-based fertilizers by 140% in a bid to provide relief to farmers as the kharif sowing season begins. The estimated additional subsidy burden is around ?14,775 crore, with the Centre emphasising that this is a one-time measure as part of COVID-19 relief. Unlike urea, where the Centre sets a fixed maximum retail price, non-urea fertilizer prices are decontrolled, with the Centre fixing nutrient-based subsidy rates.…
17 June, 2021
Economic reforms
Hallmarking of Gold Mandatory Hallmarking of Gold Jewellery is going to come into force from tomorrow, 16th June 2021. Under Hallmarking scheme of the Bureau of Indian Standards, Jewellers are registered for selling hallmarked jewellery and recognise testing and Hallmarking centres. BIS (Hallmarking) Regulations, were implemented w.e.f. 14.06.2018. Hallmarking will enable Consumers/Jewellery buyers to make a right choice and save them from any unnecessary confusion while buying gold. At present, only 30% of Indian Gold Jewellery is hallmarked. India is the world’s largest importer of gold, with annual imports of 700-800 tonne. The jewellers have been given one year time…
16 June, 2021
Gold investment
Regional Rapid Transit System (RRTS) The country’s first Regional Rapid Transit System (RRTS) is set to use an advanced signalling and train control system. According to the NCRTC, the RRTS will adopt a modern European Train Control System Level 2 signalling over the long-term evolution communication backbone with the adoption of state-of-art Hybrid Level 3. The adoption of this signalling technology adds to the distinction of RRTS, as the first technologically advanced rail network in India will be operational with a design speed of 180 km/hr. The ETCS signalling system will be a key enabler in ensuring interoperability and train…
19 June, 2021
Infrastructure
Consumer Protection (E-Commerce) Rules, 2020 For the purposes of preventing unfair trade practices in e-commerce, the Central Government had notified the Consumer Protection (E-Commerce) Rules, 2020 with effect from 23 July 2020 Major provisions To regulate all commercial transactions sold over a digital or electronic network. It recognises two e-commerce business models, namely, the marketplace model and the inventory-based model. Separate rules are specified for provisions for the marketplace and inventory-based entities. All information on the return, refund, exchange, warranty and guarantee, delivery and shipment of the goods or services being sold, including their country of origin, be provided on the…
22 June, 2021
eCommerce
Food and Agricultural Organisation (FAO) FAO is a specialised agency of the UN that leads international efforts to defeat hunger. Headquarters: Rome, Italy Founded on: 16 October 1945. World Food Day is celebrated every year on 16th October to mark the anniversary of the founding of the FAO in 1945. India is a member of FAO. Its sister bodies are the World Food Programme and the International Fund for Agricultural Development (IFAD). Goal of FAO: Achieve food security for all and accessibility; Raise nutrition levels and standard of living by improving agricultural productivity. FAO Council approved India’s proposal to observe…
21 June, 2021
Food security
Inflation and Monetary Policy Committee What is the news? Rising fuel and edible oil costs sent India’s wholesale prices inflation soaring to a record 12.94% in May, up from 10.5% in April, and nudged retail inflation to a six-month high of 6.3%, going past the central bank’s tolerance threshold of 6%. Consumers experienced inflation of 11.58% for the ‘fuel and light category in May, with urban India bearing a bigger hit of 14.24% on the same account. Food inflation reheated to 5.1% from just 1.96% in April. Rating agency ICRA reckoned that core inflation (without factoring in food and fuel…
15 June, 2021
Inflation
Inflation and Industrial output data. The latest retail inflation and industrial output data from the National Statistical Office (NSO) offer some relief from the pall of gloom cast by the relentless second wave of the COVID19 pandemic. The recent statistics Provisional headline inflation slowed to a three-month low of4.29% in April, helped by softer food prices and a statistical base effect. The rate using an imputed index for the year earlier period was 7.22%. Index of Industrial Production (IIP) estimates show all three sectoral constituents of the index-mining, manufacturing and e suffered effecting, which accounts for 77.6% of the IIP,…
14 June, 2021
Inflation
Agriculture Mechanization in India Why is Agriculture Mechanisation important? Agricultural Mechanization plays a vital role in optimizing the use of land, water energy resources, manpower and other inputs like seeds, fertilizers, pesticides etc to maximize the productivity of the available cultivable area and make agriculture a more profitable and attractive profession for rural youth. Agricultural Mechanization is one of the key drivers for the sustainable development of the agriculture sector. Sustainable Agriculture mechanization growth will require appropriate and precision agricultural machinery adequately supported by the latest technology. Sub mission on Agriculture Mechanization Ministry of Agriculture and Farmers Welfare has launched…
11 June, 2021
Agriculture
Disruptions in the Economy caused by the upsurge in COVID-19 The latest official data on retail prices and industrial production released in April 2021 provide cause for disquiet, given that inflation continues to accelerate and output at the country’s factories contracted for a second straight month. While inflation quickened to a four-month high of 5.52% in March, as per provisional data from the National Statistical Office, the NSO’s quick estimates of the Index of Industrial Production for February show output including at mines, the manufacturing sector and electricity generators shrank 3.6%, following on from January’s 0.9% contraction. Consumer Price Index…
25 April, 2021
Economic Data
Startup Ecosystem in India What is the Startup Ecosystem in India? India has the 3rd largest startup ecosystem in the world; expected to witness YoY growth of consistent annual growth of 12-15% India has about 50,000 startups in India in 2018; around 8,900 – 9,300 of these are technology-led startups 1300 new tech startups were born in 2019 alone implying there are 2-3 tech startups born every day. Definition of Startup Expanded An entity shall be considered as a Startup: Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as…
09 January, 2022
Industry
Inflation Trends in India Official data on retail food and fuel costs remain the main driver. Inflation continues to accelerate and output at the country’s factories contracted for a second straight month. While inflation quickened to a four-month high of 5.52% in March, as per provisional data from the National Statistical Office, the NSO’s quick estimates of the Index of Industrial Production for February show output including at mines, the manufacturing sector and electricity generators shrank 3.6%, following on from January’s 0.9% contraction. Food and Fuel Costs Consumer Price Index numbers show that stubbornly high food and fuel costs remain…
15 April, 2021
Inflation
International Labour Day and Labour Reforms Context: Labour is an important topic of UPSC GS Paper II and Paper III in Mains Examination. Recent Labour Codes are highly important even for Essay. Labour is in the Concurrent List in Schedule 7 of the Constitution. Hence, both the Parliament and the state legislatures can enact laws on it. International Labour Day Every year 1st May is observed as May Day and is also known as International Labour Day worldwide. It is celebrated to recognise the contributions of labourers and the working class. History The first Labour’s Day was celebrated in 1923…
01 May, 2021
Labour
National Programme for Organic Production-Organic agriculture GS-Paper-3: Economic - Agriculture – UPSC PRELIMS – Mains Application Agricultural and Processed Food Products Export Development Authority (APEDA) has sourced finger millet and barnyard millet from farmers in Himalayas (Uttarakhand) for exports to Denmark. These millets were exported to Denmark after meeting the organic certification standards of the European Union (EU). Organic Food Organic farm produce means the produce obtained from organic agriculture, while organic food means food products that have been produced in accordance with specified standards for organic production. According to FSSAI,’organic agriculture’ is a system of farm design and management to create an ecosystem of agriculture production…
09 May, 2021
Agriculture
Model Insurance Villages The Insurance Regulatory and Development Authority of India (IRDAI) has come out with the concept of Model Insurance Villages (MIV). The idea behind the MIV concept is to offer comprehensive insurance protection to all the major insurable risks that villagers are exposed to and make available covers at an affordable or subsidised cost. Such MIVs are expected to tackle losses due to natural calamities like floods and earthquakes. There’s no catastrophe insurance in India now. The concept would be implemented in a minimum of 500 villages in different districts of the country in the first year and…
09 May, 2021
Government policies and interventions
National Electricity Policy-Revision GS-Paper-3: Economic reform – UPSC PRELIMS – Mains Application The government has decided to revise the National Electricity Policy-NEP by invoking Section 3 of the Electricity Act, 2003. The 2003 Act mandates that the central government shall prepare the NEP in consultation with the state governments and the Central Electricity Authority. The government has constituted a committee now. It would finalise the draft NEP which has been circulated, after seeking views of stakeholders. The first NEP was formulated in 2005. Progress since 2005: Between 2005 and 2021, generation capacity (inclusive of renewable capacity) has gone up by…
21 January, 2022
Energy
PRAYAAS Scheme The Employees’ Provident Fund Organisation (EPFO) sent the pension payment orders to the retiring employees under the Employees’ Pension Scheme, 1995 through the “PRAYAAS” initiative. PRAYAAS is an initiative of the EPFO to disburse pension payment orders on the very day of retirement/ superannuation.
09 May, 2021
Government policies and interventions
PLI Scheme for the Food Processing Industry Ministry of Food Processing Industries (MoFPI) has launched an online portal for ‘Production Linked Incentive Scheme for Food Processing Industry’ (PLISFPI). This Central Sector Scheme ‘PLISFPI’ will be implemented for the period from 2021-22 to 2026-27. It is a part of Prime Minister’s announcement of Aatmanirbhar Bharat Abhiyan. Key Points It will support creation of global food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets. The scheme has two components, It will provide sales based incentives for manufacturing of four major food product segments -…
09 May, 2021
Government policies and interventions
National policy on Biofuels About Ethanol: About 5% of the ethanol produced in the world in 2003 was actually a petroleum product. It is made by the catalytic hydration of ethylene with sulfuric acid as the catalyst. It can also be obtained via ethylene or acetylene, from calcium carbide, coal, oil gas, and other sources. Bio-ethanol is usually obtained from the conversion of carbon-based feedstock. Agricultural feedstocks are considered renewable because they get energy from the sun using photosynthesis, provided that all minerals required for growth (such as nitrogen and phosphorus) are returned to the land. Ethanol can be produced…
02 May, 2021
Energy
RBI measures against COVID-19 The RBI Governor Shri Shaktikanta Das today announced a series of measures to support the nation’s fight against the second wave of COVID-19 infections. 1. Term Liquidity Facility of 50,000 crore to Ease Access to Emergency Health Services Term Liquidity Facility of Rs. 50,000 crores with tenure of up to 3 years, at repo rate, to ease access to emergency health services, for ramping up COVID-related health infrastructure & services. Banks can give fresh lending support to variety of stakeholders under this facility. This lending facility will be available up to March 31, 2022. Banks will…
07 May, 2021
RBI
RBI announced measures to protect Small businesses, and MSMEs to get relief RBI announced measures to protect small and medium businesses and individual borrowers from the adverse impact of the intense second wave of COVID-19 buffeting the country. In an unscheduled address, RBI Governor Shaktikanta Das unveiled a Resolution Framework 2.0 for COVID-related stressed assets of individuals, small businesses and MSMEs and also expressed the central bank’s resolve to do everything at its command to ‘save human lives and restore livelihoods through all means possible’. Eligibility criteria Considering that the resurgence of the pandemic had made these categories of borrowers…
06 May, 2021
RBI
Sudarshan Sen Committee for Asset Reconstruction Companies by RBI Reserve Bank of India(RBI) has set up the Sudarshan Sen committee to review the working of Asset Reconstruction Companies (ARCs) Comprehensively. About Asset Reconstruction Company (ARC): Asset Reconstruction Company (ARC) is a specialized financial institution that buys the Non-Performing Assets (NPAs) from banks and financial institutions. It helps banks in cleaning up their balance sheets. Thus, it helps banks to concentrate on normal banking activities. Banks, Instead of going after the defaulters, can focus on selling their bad assets to the ARCs at a mutually agreed value. Regulated by: SARFAESI (Securitization…
21 April, 2021
NPA
Startup India Seed Fund Scheme Union Minister of Commerce & Industry recently launched the Startup India Seed Fund Scheme (SISFS). About Startup India Seed Fund Scheme (SISFS): The scheme was announced during the Prarambh: the ‘Startup India International Summit’. Which marks the 5-year anniversary of the Startup India initiative. Objective: Startup India Seed Fund Scheme(SISFS) aims to provide financial assistance to startups. Assistance is provided for proof of concept, prototype development, product trials, market entry, and commercialization. Thus, it would help to grow startups to a beginner’s level. After that, startups will be able to raise investments from angel investors…
21 April, 2021
MSME
National Startup Advisory Council The Minister of Commerce & Industry chaired the first meeting of the National Startup Advisory Council (NSAC) recently. About the National Startup Advisory Council (NSAC): National Startup Advisory Council (NSAC) was constituted by the Department for Promotion of Industry and Internal Trade(DPIIT). Its purpose is to advise the Government on measures required to build a strong ecosystem for nurturing innovation and startups in the country. Functions of NSAC: To foster a culture of innovation amongst citizens and students, in particular. Further, it also promotes innovation in all sectors of the economy across the country. To facilitate…
20 April, 2021
MSME
Dindori Millets Project- Agriculture UPSC GS: Paper-3: Agriculture and Dry Land area Development: Prelims-Personality Test Context: 2023 will be observed as the International Year of Millets after India’s proposal to the Food and Agricultural Organization (FAO) was approved. In the last six decades, millets have seen a drop in area despite green evolution in the 1960s; however, the productivity seems to go up with the help of high-yield varieties and better technologies. International Fund for Agricultural Development (IFAD) has supported an initiative to revive kodo millet and kutki (little millet) cultivation in Dindori district of Madhya Pradesh. The IFAD project was started…
02 April, 2021
Agriculture
EPF tax rules- Social Security GS-Paper-3: Economic issue and Economics Optional – UPSC PRELIMS – Mains Application Context: The new EPF tax rules will come into effect from April 1, 2021, as announced in the Union Budget of 2021. Highly important for UPSC-PRELIMS and EPFO examination. For EPFO PREPARATION: https://www.aspireias.com/upsc-epfo Free SOCIAL SECURITY Booklet: https://www.aspireias.com/uploads/upladfile/Social_security_(2).pdf Existing rule? If a person contributes more than the limit prescribed under Section 80C of the Income Tax Act, he cannot get a tax break on his excess contribution. The earnings on contributions rarely suffered taxation since tax laws pegged tax-free earnings to higher rates than…
01 April, 2021
Budget
New Delhi Dialogue 2021 on The Hydrogen Economy The Union Minister inaugurated The Hydrogen Economy – New Delhi Dialogue 2021. About Hydrogen Economy – New Delhi Dialogue 2021: New Delhi Dialogue 2021 is organized by The Energy Forum(TEF), an independent think tank in India in collaboration with the Federation of Indian Petroleum Industry(FIPI). FIPI is under the patronage of the Ministry of Petroleum and Natural Gas. The dialogue aims to discuss emerging hydrogen ecosystems and exploring opportunities for collaboration, cooperation and coalition. The dialogue will comprise a High-level Ministerial Session followed by Panel Discussions by eminent policymakers. The dialogue focus…
17 April, 2021
Energy
Regulations Review Authority 2.0 by RBI Recently the Reserve Bank of India (RBI) announced the setting up of a new Regulations Review Authority (RRA 2.0). About Regulations Review Authority(RRA): RBI earlier set up the first RRA for a period of one year from April 1, 1999. This is for reviewing the regulations, circulars, reporting systems, based on the feedback from the public, banks and financial institutions. About Regulations Review Authority (RRA 2.0): RRA 2.0 will streamline the regulatory instructions, reduce the compliance burden of the entities under regulations. The RRA 2.0 will achieve this by simplifying procedures and reduce reporting…
e-SANTA The term e-SANTA was coined for the web portal, meaning Electronic Solution for Augmenting NaCSA farmers' Trade in Aquaculture. e-SANTA is an electronic marketplace providing a platform to connect aqua farmers and the buyers. It will enable the farmers to get a better price and the exporters to directly purchase quality products from the farmers enhancing traceability, a key factor in international trade. National Centre for Sustainable Aquaculture (NaCSA) is an extension arm of Marine Products Export Development Authority (MPEDA), Govt. of India, Ministry of Commerce & Industry. e-SANTA is a completely paperless and end-to-end electronic trade platform between…
14 April, 2021
Allied agriculture activities
Trade Facilitation Mobile App by DGFT Union Minister of Commerce and Industry has launched the Directorate General of Foreign Trade’s (DGFT) Trade Facilitation Mobile Application. About Trade Facilitation Mobile Application: Tata Consultancy Services(TCS) developed the Trade Facilitation Mobile Application. It is as per the directions of the Directorate General of Foreign Trade (DGFT). It aims to promote ease of doing business by providing quick access to information to importers/exporters. The application will provide the following facilities: Real-time trade policy updates and event notifications. It provides options to explore Export-Import policies and statistics. Virtual Assistance to trade-related queries. It provides access to…
16 April, 2021
Import / Export
E-SANTA Marketplace The Union Commerce and Industry Minister recently virtually inaugurated e-SANTA. About e-SANTA: e-SANTA stands for Electronic Solution for Augmenting NaCSA farmer’s trade in Aquaculture. e-SANTA is an electronic marketplace providing a platform to connect aqua farmers and buyers. The platform will also act as an alternative marketing tool between farmers & buyers by eliminating middlemen. Benefits of e-SANTA Platform: Enhances the life of Farmers: The platform will improve the lives & income of farmers by: Reducing Risk Awareness of Products & Markets Increase in Income Shielding Against Wrong Practice Ease of Processes. Promotes Transparency: The platform promotes transparency…
16 April, 2021
Procurement
Aahaar Kranti Mission The Union Minister for Science and Technology will launch a mission called `Aahaar Kranti’. About Aahaar Kranti Mission: Vijnana Bharati (Vibha) and the Global Indian Scientists’ and Technocrats’ Forum (GIST) will launch Aahaar Kranti Mission. The mission will aim to spread the message of the need for a nutritionally balanced diet. It will highlight the importance of being accessible to all local fruits and vegetables. Key Features of the Mission: The mission will work on multiple dimensions simultaneously. It will seek to promote: Better awareness Better nutrition and Also, better agriculture These messages will be imparted through…
14 April, 2021
Food security
Shaphari Scheme – To Include Shrimp Farms in Aquaculture Marine Products Export Development Authority (MPEDA) recently launched a certification scheme for aquaculture called the “Shaphari Scheme”. About Shaphari Scheme: Safari is a Sanskrit word that means the superior quality of fishery products suitable for human consumption. Purpose: It is an Antibiotics free Certification Scheme. It certifies hatcheries and farms for the production of antibiotic-free shrimp products. By doing that, it aims to: enhance consumer confidence, meet international standards promote hassle-free export The entire certification process will be online to minimize human errors and ensure higher credibility and transparency. The scheme…
13 April, 2021
Agriculture
Production of poppy straw from opium The Union government has decided to rope in the private sector to commence production of concentrated poppy straw from India’s opium crop to boost the yield of alkaloids, used for medical purposes and exported to several countries. Poppy Straw: Poppy straw is the husk left after the opium is extracted from pods. This poppy straw also contains a very small morphine content and if used in sufficient quantities, poppy straw can give a high. Possession, sale, use, etc. of poppy straw is regulated by the State Governments under the State Narcotic Drugs & Psychotropic…
08 April, 2021
Oil Crisis
British Era Lighthouses of Odisha The Ministry wants to develop them as hubs of tourism under the Sagarmala project. The British-era False Point lighthouse, a 129-ft massive minaret-like structure of red-white bands with a huge embossed star, is visible from quite a distance from the Bay of Bengal. Its location close to massive mangrove vegetation infested with crocodiles makes it an adventurous tourist place on the eastern coast. Barely 40 km away, the Paradip lighthouse is another imposing structure. It also holds tourism potential because of its proximity to the port town and Cuttack and Bhubaneswar cities (100 km). It…
12 April, 2021
Tourism
G-SAP 1.0 RBI in its April 2021 monetary policy continues with the accommodative stance as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of COVID-19. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25% and the reverse repo rate stands unchanged at 3.35%. The rates were left unchanged to boost Public investment in key infrastructure sectors, which is a force multiplier with a historically proven ability to revive the broader economy by directly enhancing capital stock and productivity, and by attracting private investment Reserve Bank is optimistic…
12 April, 2021
Money Market
Fisheries Sector Fishing is one of the oldest occupations of man. Fish provides protein-rich food and is also a big source of vitamins A, B and D. There are about 30,000 species of fish in the world out of which about 18,000 are found in India. Fish forms an important part of diet of the people living in the coastal areas. India is the 6th largest producer of fish and 2nd largest producer of inland fish in the world. The fisheries sector provides employment to over 14 million people. World Data Overall, the value of frozen fish exports rose by…
12 April, 2021
Fisheri
Status of Indian Agriculture Growth: The Agriculture and Allied activities clocked a growth of 3.4%. As per the Provisional Estimates of National Income released by Central Statistical Organization in May, 2020, the share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country at current prices is 19.9% in 2020-21 from 17.8% for the year 2019-20. Agricultural Exports In 2019-20, India’s agricultural and allied exports amounted to approximately Rs. 252 thousand crores. The major export destinations were USA, Saudi Arabia, Iran, Nepal and Bangladesh. The top agriculture and related products exported from India were marine products, basmati rice, buffalo meat, spices, non-basmati rice, cotton raw,…
12 April, 2021
Agriculture
Centre to certify Shrimp farms Frozen shrimp is India’s largest exported seafood item. It constituted 50.58% in quantity and 73.2% in terms of total U.S. dollar earnings from the sector during 2019-20. Andhra Pradesh, West Bengal, Odisha, Gujarat and Tamil Nadu are the major shrimp-producing States, and around 95% of the cultured shrimp produce is exported. To bolster confidence in India’s frozen shrimp produce, the country’s biggest seafood export item, the Centre has kicked off a new scheme to certify hatcheries and farms that adopt good aquaculture practices. India exported frozen shrimp worth almost $5 billion in 2019-20 to the…
12 April, 2021
Allied agriculture activities
Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 IBC (Amendment) Ordinance, 2021 Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 promulgated on 4th April, 2021 provides for pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small and medium enterprises. The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 (PPIRP Regulations) today to enable operationalisation of PPIRP. The PPIRP Regulations detail the Forms that stakeholders are required to use, and the manner of carrying out various tasks by them as part of the PPIRP. These provide details…
11 April, 2021
NPA
Investments in India Why in News India has attracted a total FDI inflow of US$ 72.12 billion during April to January 2021. It is the highest ever for the first ten months of a financial year and 15% higher as compared to the first ten months of 2019-20 (US$ 62.72 billion). Japan has been leading the list of investor countries to invest in India with 29.09% of the total FDI Equity inflows during January 2021, followed by Singapore (25.46%) and the U.S.A. (12.06%). In terms of top investor countries, ‘Singapore’ is at the apex with 30.28% of the total FDI…
11 April, 2021
Investment Models
Forex Reserves of India Why in News? The country's foreign exchange reserves declined from USD 4.255 billion to USD 580.299 billion, the fall in reserves was due to a decline in the Foreign Currency Assets (FCA). What is the reason for forex rise/fall? Rise/Fall in Forex is mainly attributed to appreciation or depreciation of currencies in the basket. Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Reserve Bank of India Act and the Foreign Exchange Management Act, 1999 set the legal…
11 April, 2021
Forex
Indian Banking system & Related Terms - UPSC GS-PAPER-3 Economics-Banking and associated terms Rates Base Rate – This is the minimum rate at which a bank can lend to its customers. It cannot lend below the base rate. All interest rates determined for various loans will use the base rate as the benchmark. Fixed Rate – A fixed rate is when the rate of interest for a loan remains constant throughout the entire tenure. Floating Rate – Opposite of fixed rate, a floating rate of interest are interest rates that change during the tenure of the loan. These interest rates…
10 April, 2021
Banking
India’s Banking Sector a brief Timeline – UPSC PRELIMS GS Paper-3 Banking system – Prelims and Personality test Banking is considered to be the “Backbone of a Nation’s Economy”. It is the most leading part of the financial sector of the country as it is responsible for more than 70 % of the funds that flow through the financial sector in the country. The advancement of the Indian Banking System can be classified into 3distinct Phases: 1. The Pre-Independence Phase, i.e. before 1947 2. Second Phase from 1947 to 1991 3. Third Phase 1991 and beyond First Phase - The Pre-Independence Phase…
10 April, 2021
Banking
Major Committees – Indian Banking system Committee Purpose Banking and Financial Sector Reforms Basel Committee Banking Supervision Bimal Jalan For New Bank Licenses Raghuram Rajan Committee For Financial Sector Reforms For Banking Sector Reforms Sukhmoy Chakravarty Committee to Review Working of Monetary System For Reforms Relating To Non-Banking Financial Companies (NBFC) Marathe Licensing of New Banks A K Khandelwal Issues Of Public Sector Banks Investigate Frauds & Malpractices Ghosh Frauds & Malpractices In India Janakiraman To Investigate The Security Transactions Of The Bank Justice M B Shah Commission On Black Money R. Jilani Inspection…
10 April, 2021
Terminology
Modified tax system Introduction This article analyses the amendments brought to the Finance Bill 2021 regarding taxation matters Finance Minister has steered through Parliament the Finance Bill of 2021, which includes 127 amendments. Issues with the Rs.2.5 lac per year limit Responding to MPs’ concerns on the tax, she said that nearly 93% PF account holders will be covered by the ?2.5 lakh per year limit, while a mere 1% were abusing the system. Yet, she introduced an amendment doubling the threshold for annual PF contributions to ?5 lakh, only for employees whose employers do not remit any contribution to…
26 March, 2021
Tax
India Energy Outlook Report, 2021 GS-Paper-3 Energy security – Infrastructure development- Prelims & UPSC Interview Context: The International Energy Agency (IEA) has recently released the India Energy Outlook 2021 report. The report is highly important for UPSC examination topic ENERGY SECURITY. (1) Energy consumption India at present is the fourth-largest global energy consumer behind China, the United States and the European Union. It will overtake the European Union as the world’s third-largest energy consumer by 2030. It will account for the biggest share of energy demand growth over the next two decades. (2) Energy demand India accounts for nearly one-quarter…
07 April, 2021
Energy
K-Shaped Recovery A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people. A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession. This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter "K." Implications COVID has…
06 April, 2021
Economic crisis
Revival in Lockdown-caused-contraction in GDP Advance Estimates of National Income project 8% Contraction in GDP. For the fiscal year 2020-21, GDP contraction is estimated at 8.5 per cent by World Bank as against a growth of 4 per cent during FY 2019-20. The general government deficit is expected to remain above 10% of GDP until FY22. NSO revised 1stquarter GDP shrinkage to 24.4% from 23.9%. After reaching 8.3% in FY17, growth decelerated to 4.0 per cent in FY20. The slowdown was caused by a decline in private consumption growth and shocks to the financial sector (the collapse of a large non-bank…
29 March, 2021
GDP/GNP
Production Linked Incentive (PLI) Scheme for Food Processing Industry Background: The food processing sector in India encompasses manufacturing enterprises in all the segments from micro to large industries. India is having competitive advantage in terms of resource endowment, large domestic market and scope for promoting value added products. Achieving full potential of this sector would require Indian companies to improve their competitive strength vis-a-vis their global counterpart in term of scale of output, productivity, value addition and their linkages with the global value chain. About the PLI Scheme The Production Linked Incentive Scheme for Food Processing Industry has been formulated…
03 April, 2021
Food processing industry
Foreign Trade Policy 2015-2020 extended for 6 months till September 2021 The Union Commerce and Industry Ministry has announced changes in India’s Foreign Trade Policy (FTP). The Govt. has decided to continue relief under various export promotion schemes by granting an extension of the existing Policy. It provided a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in keeping with the “Make in India” vision of Prime Minister. The focus of the new policy is to support both the manufacturing and services sectors, with a special emphasis…
16 June, 2020
Foreign trade data
New irrigation techniques - PMKSY Background Water resources development & management are planned, funded, executed and maintained by the State Governments (PT Pointer) themselves as per their own resources and priorities. In order to supplement the efforts of the State Governments, Government of India provides technical and financial assistance to State Governments to encourage sustainable development and efficient management of water resources through various schemes and programmes. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) PMKSY was launched during 2015-16 by the Central Government with the following components, Accelerated Irrigation Benefits Programme (AIBP), Har Khet Ko Pani (HKKP), Per Drop More Crop…
03 April, 2021
Agriculture
PLI Scheme for Food Processing Industry Union Cabinet has approved the PLI (Production Linked Incentive) Scheme for Food Processing Industry. About PLI scheme for Food Processing Industry The scheme will be implemented over a 6-year period from 2021-22 to 2026-27. The scheme aims to support the creation of global food manufacturing champions according to the natural resources of India. Objectives of the Scheme PLI scheme will support food manufacturing organizations with stipulated minimum sales. It will also support Indian brands of food products in the international markets with an outlay of Rs. 10900 crore. It will increase employment opportunities and ensure good prices for…
02 April, 2021
Food security
Mines and Minerals (Development and Regulation) Amendment Bill, 2021 The Rajya Sabha passed the Mines and Minerals (Development and Regulation), Amendment Bill, 2021 doing away with the distinction between the captive and non-captive mines, allowing captive mines to sell up to 50% of the minerals excavated during the current year that will also help towards the auctioning of more mines. The MMDR Act, 1957 empowers the central government to reserve any mine as captive mine which is utilised for a specific purpose only. The bill removes the distinction between captive and non-captive mines. The mines will not be limited to just a…
31 March, 2021
Mine and minerals
Insurance Amendment Bill, 2021 The government introduced a bill in Rajya Sabha to amend the Insurance Act, of 1938 and raise the foreign direct investment cap to 74% from 49%. Provisions: The Act allows foreign investors to hold up to 49% of the capital in an Indian insurance company, which must be owned and controlled by an Indian entity. The Bill increases the limit on foreign investment in an Indian insurance company from 49% to 74%, and removes restrictions on ownership and control. However, such foreign investment may be subject to additional conditions as prescribed by the central government. The…
01 April, 2021
FDI REFORMS
The Insurance (Amendment) Bill, 2021 Introduction The Bill amends the Insurance Act, 1938. The Act provides the framework for the functioning of insurance businesses and regulates the relationship between an insurer, its policyholders, its shareholders, and the regulator (the Insurance Regulatory and Development Authority of India). The Bill seeks to increase the maximum foreign investment allowed in an Indian insurance company. Features of the Bill: Foreign investment: The Act allows foreign investors to hold up to 49% of the capital in an Indian insurance company, which must be owned and controlled by an Indian entity. The Bill increases the limit…
27 March, 2021
FDI REFORMS
Minerals (Development and Regulation) Amendment Bill, 2021 This bill was introduced to streamline the renewal of the auction process for minerals and coal mining rights. What are the key changes? The amendment proposes to allow captive miners of both coal and other minerals to sell up to 50 per cent of their production after meeting the requirements of the end-use plant and on paying additional royalty to the state government. Operators are currently only allowed to use coal and minerals extracted from captive mines for their own industrial use. Experts note that this increased flexibility would allow miners to maximise…
27 March, 2021
Mine and minerals
National Bank for Financing Infrastructure and Development Bill, 2021 Introduction The Bill seeks to establish the National Bank for Financing Infrastructure and Development (NBFID) as the principal Development Financial Institution (DFIs) for infrastructure financing. It was announced in the Budget 2021. About NBFID: NBFID will be set up as a corporate body with an authorised share capital of one lakh crore rupees. Objectives of NBFID: To directly or indirectly lend, invest, or attract investments for infrastructure projects located entirely or partly in India. Includes facilitating the development of the market for bonds, loans, and derivatives for infrastructure financing. Functions of…
27 March, 2021
Infrastructure
RBI Committee to Study Applications for Universal Banks & Small Finance Banks The Reserve Bank of India (RBI) has announced the creation of a Standing External Advisory Committee under the chairmanship of Shyamala Gopinath for evaluating applications for Universal Banks and Small Finance Banks. This is part of the central bank’s earlier announced plan to give banking permits on a continuous basis to candidates, a process that is commonly known as ‘on-tap’ licensing. About On tap licensing: It means the RBI window for granting banking licences will be open throughout the year. What is Universal banking? It is a system…
25 March, 2021
Banking
Core infrastructure Sector Year on the Year Growth rate of 8 Core Industries vis-à-vis COVID. Core industries have been adversely affected by the Covid-19 pandemic Except for Fertilizers, all the sectors witnessed a fall in growth. During covid major drop was witnessed by sectors like cement (-85%), steel(-82.8%), Refinery Product(-21.3 %) and Electricity(-22.9%) in the month of April. Y-o-Y basis, the sectors Cement(-16%), Steel(-14%), Refinery(-12.4%), Natural gas(10.7%) witnessed a sharp fall in growth due to lock down. Coal Sector witnessed a sharp rise (7.4%) in 2018-19 due to Mission Shakti but fell after that due to de-licensing, Pandemic- leading…
25 March, 2021
Inflation
Atal Bimit Vyakti Kalyan Yojana The scheme Atal Beemit Vyakti Kalyan Yojana was introduced by the Employees’ State Insurance Corporation (ESIC) on pilot basis for a period of 2 years w.e.f. 01.07.2018 for providing relief to the Insured Persons (IPs) who have become unemployed. Under this scheme relief in the form of cash compensation to the extent of 25 per cent of the average per day earning was paid upto a maximum of 90 days of unemployment subject to conditions that the employee should have completed two years of Insurable employment and has contributed not less than Seventy-Eight (78) days…
25 March, 2021
Financial inclusion
Dedicated Freight Corridors (DFC): Ministry of Railways is executing the work of construction of two dedicated freight corridors namely Eastern and Western Dedicated Freight Corridors (EDFC & WDFC) to augment the rail transport capacity along above routes to meet the growing need of the economy and facilitate faster evacuation of freight traffic. What is Dedicated Freight Corridor? It is a high speed and high capacity railway corridor that is exclusively meant for the transportation of freight, or in other words, goods and commodities. DFC involves the seamless integration of better infrastructure and state of the art technology. The salient features…
25 March, 2021
Infrastructure
Delivery of Seeds in India The States are primarily responsible to ensure the production, availability and distribution/ supply of quality seeds to the farmers through its Department of Agriculture, state farms, State Seeds Corporation, State Agricultural Universities (SAUs), Cooperatives and Private Seed Companies etc. The Government of India supplements the efforts of the State Governments by providing breeder seeds for seed chain and coordinating seeds requirement and availability through the mechanism of Zonal Seeds Review Meetings prior to each sowing season and weekly video conferences. As reported by States, 483.66 lakh qtls. of certified / quality seed is available against…
24 March, 2021
Agriculture reforms
Process of Setting up Cold Storage The government does not set up cold storage of its own. However, Government is implementing various schemes under which financial assistance is provided for setting up cold storage for storage of agricultural produce including perishable horticulture produce throughout the country. 1) Mission for Integrated Development of Horticulture (MIDH) Department of Agriculture Cooperation and Farmers Welfare (DAC&FW) is implementing Mission for Integrated Development of Horticulture (MIDH) under which financial assistance is provided for various horticulture activities including setting up of cold storages. The component is demand/entrepreneur driven for which Government assistance in the form of…
24 March, 2021
Food processing industry
One District One Product (ODOP) approach under PM FME Scheme The Ministry of Food Processing Industries (MoFPI) under the Centrally Sponsored Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme), provides financial, technical and business support for upgradation of existing micro food processing enterprises. The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products. The objectives of the scheme are to build capacity of two lakh micro enterprises through increased access to credit, integration with organized supply chain by…
24 March, 2021
Food processing industry
Difference between Petroleum, Natural Gas, LNG, LPG and H-CNG Petroleum / Mineral oil Natural Gas Found in sedimentary rocks of marine origin Formed by decomposition of tiny marine creatures, plants & vegetation under mud, silt & sand. Over the years, it undergoes chemical changes to form crude oil & natural gas under the action of heat & pressure. 20 % of India’s crude oil & gas demand is produced domestically & 80 % is imported from (UAE, Saudi, Iran, Russia). Jamnagar Refineries of Reliance industries is world largest refinery complex. HPCL is a Navratna company. It has 2 refineries - Mumbai…
01 February, 2022
Energy
Mines and Minerals (Development and Regulation) (MMDR) Amendment Bill, 2021 Lok Sabha has passed the Mines and Minerals (Development and Regulation) Amendment Bill,2021 which seeks to amend the Mines and Minerals (Development and Regulation) Act, 1957. This act regulates the mining sector in India. Key Provisions: The Act empowered the central government to reserve any mine (other than coal, lignite, and atomic minerals) for particular end-use. Such mines are known as captive mines. The Bill removes the distinction between captive and non-captive mines. It provides that no mine will be reserved for a particular end-use. All mines will now be able to…
21 March, 2021
Mine and minerals
Vehicle scrappage policy Scrappage policy can work if incentives are confined to fuel-efficient vehicle replacements Road map for scrappage policy The much-awaited vehicle scrappage policy announced by the Transport Ministry, coming after the move for a green tax on ageing and polluting automobiles, promises economic benefits, a cleaner environment and thousands of jobs. Although it will take until April 1, 2022, for vehicles belonging to the government and the public sector to be scrapped, another year thereafter to identify junk heavy commercial vehicles through mandatory fitness checks, and finally other vehicles by 2024, it is a constructive road map. Challenge…
22 March, 2021
Automobile policy
Rising poverty post COVID-19 Poverty levels in India and China A new study by the Pew Research Center estimates that the COVID-19 pandemic has had a disproportionately deleterious impact on living standards in India and China in 2020, with the sharp economic contraction in the former pushing as many as 7.5 crore people into the ranks of the poor (those who earn $2 or less a day). In contrast, the figure is about 10 lakh in China, whose economy slowed but continued to post growth. In absolute terms, the number of poor in India is posited to have swelled to…
22 March, 2021
Poverty
Vehicle Scrapping Policy 2021 Road Transport and Highways Ministry announced the Voluntary vehicle fleet modernisation programme. The programme is also known as the Vehicle scrapping policy. Why in news? Prime Minister Narendra Modi unveiled the National Automobile Scrappage Policy and said the initiative will promote a circular economy and make the process of economic development more sustainable and environmentally friendly. The policy, aimed at recycling old and unfit vehicles, will give a new identity to India’s mobility and auto sector, Mr Modi said in his address while virtually unveiling the initiative during an ‘Investors Summit’ organised in Gandhinagar. The summit, which saw the…
24 November, 2021
Automobile policy
Global Hunger Index and India Context: Highly Important for PT-MAINS-PT – Useful in Paper-3 and Sociology Annual Report: Jointly published by Concern Worldwide and Welthungerhilfe. It was first produced in 2006. It is published every October. The 2021 edition marks the 16th edition of the GHI. Aim: To comprehensively measure and track hunger at the global, regional, and country levels. Calculation: It is calculated on the basis of four indicators: Undernourishment: Share of the population with insufficient caloric intake. Child Wasting: Share of children under age five who have low weight for their height, reflecting acute undernutrition. Child Stunting: Share…
27 October, 2021
Hunger
Vehicle Scrapping Policy Background It is also known as Voluntary Vehicle-Fleet Modernization Program. India has 51 lakh Light Motor Vehicles which are older than 20 years and 34 lakh Light Motor Vehicles which are older than 15 years. Around 17 lakh Medium and Heavy Commercial Vehicles are older than 15 years without valid fitness certificate. Older vehicles pollute the environment 10 to 12 times more than fit vehicles and pose a risk to road safety. The policy is aimed at creating an Eco-System for phasing out of Unfit and Polluting Vehicles. The objectives of the policy are to reduce population of…
19 March, 2021
Automobile policy
World Energy Transitions Outlook Report The report was released by the International Renewable Energy Agency (IRENA). It says that the Covid-19 crisis offers an unexpected opportunity for countries across the world to decouple their economies from fossil fuels. IRENA estimates that by 2050, 90% of total electricity needs would be supplied by renewables, 6% from natural gas and the remaining from nuclear. About IRENA: It is an intergovernmental organisation mandated to facilitate cooperation, advance knowledge, and promote the adoption and sustainable use of renewable energy. It is the first international organisation to focus exclusively on renewable energy, addressing needs in…
19 March, 2021
Energy
Rule Curve of a Dam The Supreme Court ordered the Tamil Nadu govt. to give information on the ‘rule curve’ for the Mullaperiyar dam. What is Rule Curve? The ‘rule curve’ in a dam decides the fluctuating storage levels in a reservoir. The gate opening schedule of a dam is based on the ‘rule curve’. It is part of the “core safety” mechanism in a dam. Rules curves are used to guarantee the safety of the reservoir as well as water security. About Mullaperiyar Dam: The Mullaperiyar dam is located on the confluence of the Mullayar and Periyar rivers in Kerala’s…
18 March, 2021
Terminology
Proposal for Setting up of “Development Finance Institution Approved The Union Cabinet approved a bill to set up a Development Finance Institution(DFI). It will be called National Bank for Financing Infrastructure and Development (NaBFID). About National Bank for Financing Infrastructure and Development (NaBFID): Initially, the Government of India will own it with a 100% stake. They will gradually bring it down to 26% in a few years. It will provide finance for social and economic infrastructure projects identified under the National Infrastructure Pipeline(NIP). A professional board with at least 50% of the members as non-official directors. The capital infusion by…
18 March, 2021
Investment Models
Data On Employment Employment during COVID-19 According to ILO, of the 535M labour force in 2019, 398 M will have poor-quality jobs. National Rural Employment Guarantee Scheme witnessed 243% rise in person workdays in 2020-21 Shrinking Sectors have been affected the most Construction(-50%), Trade, Hotels(-47%), Manufacturing(-39%)and Mining(-23%). CMIE report: Unemployment rate in Haryana is the highest of all states. 80% of women in Haryana who want to work cannot find job. And >50% of all graduates in Haryana are Jobless. States reserving jobs based on Domicile Haryana, Jharkhand, Andhra, TN
17 March, 2021
Unemployment
National Institutes of Food Technology Bill, 2019 Passed by Rajya Sabha Rajya Sabha passed the National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019. Provisions: The bill declares two institutes of food technology, entrepreneurship, and management as institutions of national importance. These are: National Institute of Food Technology Entrepreneurship and Management, Haryana Indian Institute of Food Processing Technology, Tamil Nadu. Institutions of National Importance:. The status is conferred on a premier public higher education institution in India by an act of the Parliament of India. Benefits: These institutes are provided functional autonomy to design and develop courses Award Degrees such…
15 March, 2021
Agriculture
Small Farmers’ Agribusiness Consortium The government of India through the Small Farmers’ Agribusiness Consortium (SFAC), a registered society under the Department of Agriculture, Cooperation & Farmers’ Welfare, Government of India, is promoting Farmer Producer Organisations (FPOs) by mobilizing the farmers and helping them in registering as companies and providing them with handholding support and training for their sustainability. SFAC handles Prize Stabilization Fund too (PT Pointer). SFAC has undertaken various FPO promotion programmes in the country such as through Vegetable Initiative for Urban Cluster (VIUC), Mission Organic Value Chain Development (MOVCD), National Food for Security Mission (NFSM), Mission for Integrated…
16 March, 2021
Agriculture
Paramparagat Krishi Vikas Yojana It was started in 2015 under Ministry of Agriculture and Farmers Welfare. It is a sub component of Soil Health Management under National Mission on Sustainable Agriculture. MP has largest area under Organic certification followed by Rajasthan, Maharashtra and UP. Features of PKVY Produce Agri products free from chemicals and pesticides. Cluster approach in input production, quality assurance and value addition. For more than 50 farmers. Total area = 50 acre (20 ha). It is for 3 years. Farmers will get Rs. 20000 per acre. The amount covers all expenses. Out of total farmers in clusters 65% should…
16 March, 2021
Agriculture
Data on Inflation Feb-2021 Retail inflation, measured by the CPI, accelerated to a three-month high of 5.03% in February, data released by the National Statistical Office. The jump of almost 100 basis points from January’s 4.06%, while partly attributable to a base effect given that price gains had relatively eased in February 2020. RBI’s early February prognostication of continuing pressures in the prices of pulses and edible oils has been borne out by the last two months’ CPI data. Inflation of both essential food products has persisted in the double digits during the period, and in the case of the…
16 March, 2021
Inflation
E-commerce rules in India Definition Electronic commerce or e-commerce is a business model that lets firms and individuals buy and sell things over the Internet. The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest e-commerce market in the world by 2034. It is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. e-Commerce matters were transferred to DPIIT, Ministry of Commerce and Industries in 2018. DPIIT also provides…
14 March, 2021
eCommerce
Agglomeration Effect Agglomeration Economies: A localized economy in which a large number of companies, services, and industries exist in close proximity to one another and benefit from the cost reductions and gains in efficiency that result from this proximity. If an area specialises in the production of a certain type of good, all firms can benefit from various factors such as: Good supply networks Supply of trained workers Infrastructure built specifically for the industry Good transport links
15 March, 2021
Terminology
Small Finance Banks About Finance Banks: They are niche banks that focus on and serve the needs of a certain demographic segment of the population. The objectives of setting up of small finance banks will be to further financial inclusion by the provision of savings vehicles supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations. SFBs was recommended by the Nachiket Mor committee on financial inclusion. Scope of activities of SFBs Small finance banks primarily undertake basic banking activities of acceptance of deposits and…
15 March, 2021
Banking
Railway freight usage surpasses FY20 level Context The Railways on Friday said its freight loading for the financial year 2020-21 has already surpassed the levels achieved during the last fiscal, as of March 12, driven by transportation demand from newer sectors such as automobiles, onion, sand and cotton. In 2020-21, the Railways has till now loaded 1145.68 million tonnes (mt) of freight, marginally higher from 1145.61 mt in the previous year. ‘Emerging from deficit’ As per the details shared by the Railways, there was a shortfall of about 50 mt in loading of coal, which comprises half of its freight,…
13 March, 2021
Railways
IDBI Bank out of Prompt Corrective Action Framework Reserve Bank of India(RBI) has taken out IDBI Bank from the prompt corrective action(PCA) framework subject to certain conditions. Prompt corrective action Framework: Banks with weak financial metrics are put under the PCA framework by the Reserve Bank of India It aims to check the problem of Non-Performing Assets (NPAs) in the Indian banking sector. When was the PCA framework introduced? The RBI introduced the PCA framework in 2002. It is a structured early-intervention mechanism for banks that become undercapitalised due to poor asset quality, or vulnerable due to loss of profitability.…
12 March, 2021
RBI
The Parliamentary Standing Committee on Rural Development has submitted its report to the Lok Sabha. It suggests that the Central Government must increase the small number of pensions provided for poor senior citizens, widows and disabled people under the National Social Assistance Programme(NSAP). About National Social Assistance Programme(NSAP): Nodal Ministry: It was launched in 1995. It is a welfare programme administered by the Ministry of Rural Development. The programme is being implemented in rural areas as well as urban areas. Aim: To provide financial assistance to the elderly, widows and persons with disabilities in the form of social pensions. Current Schemes under…
11 March, 2021
Poverty
Agriculture Voltage Technology The agri-voltaic system of 105 KW capacity was developed by ICAR-Central Arid Zone Research Institute, Jodhpur. This technology can increase the income of farmers by the generation of electricity and growing cash crops simultaneously on the same piece of land. Under component-I of the KUSUM scheme, there is a provision for the installation of an agri-voltaic system in farmers’ fields with a capacity ranging from 500 KW to 2 MW. KUSUM Scheme: Launched by the Ministry of New and Renewable Energy for farmers for installation of solar pumps and grid-connected solar and other renewable power plants in the country. AIM :…
10 March, 2021
Agriculture
Data on Special Economic Zones(SEZ) The Special Economic Zones (SEZs) policy was launched in April 2000. The Special Economic Zones Act was enacted in 2005. The amount of land that the proposal requires will determine what type of SEZ it will be. Some of the different types are: Multi-sector SEZ (requiring a minimum of 1000 hectares of land); Sector-specific SEZ (requiring a minimum of 100 hectares); Free Trade and Warehousing Zone (FTWZ) (requiring a minimum of 40 hectares); and IT/ITeS/handicrafts/biotechnology/non-conventional energy/gems and jewellery SEZ (requiring a minimum of 10 hectares). Incentives and facilities available to developers include: Exemption from customs/excise…
11 March, 2021
Industrial Policy, Liberalisation
External Trade COVID-19 pandemic led to a sharp decline in global trade, lower commodity prices and tighter external financing conditions with implications for current account balances and currencies of different countries. • India’s forex reserves at an all-time high of US$ 586.1 billion as on January 2021, covering about 18 months’ worth of imports. • India experiencing a Current Account Surplus along with robust capital inflows leading to a BoP surplus since Q4 of FY2019-20 • Balance on the capital account is buttressed by robust FDI and FPI inflows: Net FDI inflows of US$ 27.5 billion during April-October, 2020: 14.8% higher…
10 March, 2021
Economic Survey
Lowering Government Yields Government Security (G-Sec) yields could soften temporarily as the Indian government’s fiscal deficit may undershoot FY2021 Revised Estimate (RE) by Rs.50,000 crore to Rs.90,000 crore. G-Secs are government debt issuances used to fund daily operations, and special infrastructure and military projects. They guarantee the full repayment of invested principal at the maturity of the security and often pay periodic coupons or interest payments. The two key categories are: Treasury bills (T-Bills) – short-term instruments which mature in 91 days, 182 days, or 364 days, and Dated securities – long-term instruments, which mature anywhere between 5 years and…
08 March, 2021
Government Budgeting
Remote Work Models Introduction The first known remote worker was an employee of NASA in the early 70s. In 1996, the National Telecommuting Initiative was launched in the U.S. to promote remote work within the government. As a result, Congress approved the use of telecommuting in Federal agencies. Type-1: Centralized Office + Occasional Work-from-Home With this model, employees are required to work primarily from the office, but with the occasional work-from-home option. This model is attractive to just about anyone, but maybe especially beneficial for busy parents or those who live further away from the office. The number of remote…
09 March, 2021
Terminology
Data on Sectoral Deployment of Bank Credit in 2020-21 Year-on-Year Growth of outstanding bank loans is on decelerating pace. It slowed down to lowest in last 10 yrs. Industries: Credit to large industries contracted by 2.5%. Large industries constitute 82% of credit off-take to the industrial sector. Non Food Bank Credit All loans except those given to FCI for food grain procurement, decelerated to 5.7% in 2021. Personal loans Decelerated to 9.1% . Loans to Agriculture and Allied sectors Expanded by 9.9%, as the sector saw an increase in employment following record levels of reverse migration following lockdown.
06 March, 2021
Banking
Contraction in GDP due to Lockdown Advance Estimates of National Income project an 8% Contraction in GDP. NSO revised the 1stquarter GDP shrinkage to 24.4% from 23.9% Government spending, public administration, defence and other services contracted. Services like Retail, trade, hotels, transport and communication contracted 7.7%. Informal sector, Microenterprises, contact intensive services, stress in employment Reflect no recovery in job sector. Slow revival Manufacturing and Construction resurfaced from collapse to expand 1.2% & 6% respectively. Feeble growth in GDP by0.4% and GVA by 1% in late 2020.
06 March, 2021
GDP/GNP
Gross Domestic Product vs Gross Value Added Gross Domestic Product Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. GDP includes all private and public consumption, government outlays, investments, private inventories, paid-in construction costs and the foreign balance of trade (exports are added, imports are subtracted) Thus the components of GDP are Consumption (C) plus Investment (I) plus Government Spending (G) plus BOP i.e. Exports minus Imports (X-M) GDP is calculated using this standard formula: C + I + G + (X-M). GDP is commonly used…
04 March, 2021
GDP/GNP
Economic revival from the economic recession Introduction After two-quarters of a sharp contraction, India’s economy is estimated to have rebounded out of a ‘technical recession’ to record feeble growth in the October-December 2020 period, with GDP rising by 0.4% and GVA by 1%. Reboot in production lines The ‘unlocking phase’ that was largely complete by late September, brought back a semblance of normalcy, with pent-up and festival demand spurring spending, and helping reboot production lines. Agriculture sector: Agriculture remained the resilient bulwark in the third quarter as well, with farm GVA rising by 3.9% after being the sole sector to…
03 March, 2021
Economic Data
One District One Focus Product Ministry of Agriculture and Farmers Welfare, and the Ministry of Food Processing Industries have finalized the products for One District One Focus Product (ODOFP). Products - Agricultural, horticultural, animal husbandry, poultry, milk, fisheries, aquaculture, marine and processed food sectors. These products are finalized after taking inputs from States/UTs and the Indian Council of Agricultural Research (ICAR). They will be promoted in a cluster approach through the convergence of the schemes, to increase the farmers’ income and the value of the products. Ministry of Agriculture and Farmers Welfare will support ODOFP from its ongoing centrally sponsored schemes -Mission…
02 March, 2021
Agriculture
BUDGET 2021-22 DATA Prominent Themes of Budget 2020-21 Budget 2020-21 is woven around three prominent themes: Aspirational India in which all sections of the society seek better standards of living, empowerment with access to health, education and better jobs. Economic development for all is indicated in the Prime Minister’s exhortation of “Sabka Saath, Sabka Vikas, Sabka Vishwas”. This would entail reforms across swathes of the economy. Simultaneously, it would mean yielding more space for the private sector. Together, they would ensure higher productivity and greater efficiency. Humane and compassionate Society Antyodaya is an article of faith. Economic infrastructure New Development Finance Institution…
01 March, 2021
Budget
Index of Eight Core Industries This index for January 2021 was released by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade. Eight Core Industries - Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement, Electricity. These Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). Since 2014, Electricity generation data from Renewable sources are also included. Consumer Price Index It examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated…
27 February, 2021
Inflation
Mahabahu-Brahmaputra project The Central Government has laid the foundation of the Mahabahu-Brahmaputra project to initiate developmental activities near the Brahmaputra and the surrounding areas of the Barak River and to provide seamless connectivity to the region. Under this project, the foundation stone of a four-lane bridge over the Brahmaputra River between Dhubri (North Coast) and Phulbari (South Coast) will be laid. The proposed bridge will be located on NH-127B, which originates from Shrirampur and terminates at Nongstoin on NH-106 in Meghalaya. It will connect Dhubri in Assam to Phulbari, Tura, Rongram and Rongjeng in Meghalaya. Along with this, the foundation stone…
19 February, 2021
Infrastructure
Indian Energy Exchange IEX is the first and largest nationwide energy exchange platform in India, which has been operating since 2008. It is an automated trading platform for physical delivery of electricity, Renewable Energy Certificates and Energy Saving Certificates. It enables efficient price discovery and increases the accessibility and transparency of the power market in India. The benefiting open access consumers belong to various industries such as metal, food processing, textile, chemicals, automobiles, IT industries, institutional, housing and commercial entities. It is a publicly listed company with NSE and BSE and is regulated by Central Electricity Regulatory Commission (CERC).
25 February, 2021
Energy
Accredited Investor SEBI has proposed to introduce the concept of ‘accredited investors’ in the securities market. Accredited investors (Qualified investors or Professional investors) are those who have an understanding of various financial products and the risks and returns associated with them. They are able to take informed decisions regarding their investments and are recognised by many securities and financial market regulators globally. SEBI said the accreditation once granted shall be valid for a year. The accreditation may be carried out via 'Accreditation Agencies’ which may be the market infrastructure institutions or their subsidiaries.
25 February, 2021
Stock market
Data on petrol cess and other cesses. Cesses are collected for a specific purpose, and they need not be shared with the States, as they are excluded from the purview of a divisible pool of taxes. Heavy taxation on crude oil combined with a significant uptick in international crude prices is responsible for 2021 price rise. In the FY22 Budget, an Agriculture Infrastructure and Development (AID) Cess was announced on select items, including petrol and diesel. It is important to note that Not a single rupee of the cess collected on crude oil in the past 10 years was used…
24 February, 2021
Tax
Agriculture Infrastructure Development Cess The Budget 2021-22 has proposed a new levy, Agriculture Infrastructure Development Cess (AIDC) on 29 items. The purpose of the new AIDC is to raise funds to finance spending on developing agriculture infrastructure. The new cess will be levied on 29 products, such as gold, silver, as well as imported alcohol (excluding beer), imported apple, pulses, palm oil, urea, and petrol/diesel including branded ones. The new cess will only offset the reduction in Basic Custom Duty (BCD), Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) on unbranded and branded petrol-diesel. Thus it will not…
24 February, 2021
Agriculture
SFURTI Scheme 50 artisan-based clusters were recently inaugurated through the SFURTI Scheme (Scheme of Fund for Regeneration of Traditional Industries) in 18 States. Ministry of MSME is implementing an SFURTI scheme with a view to organizing traditional industries and artisans into clusters to make them competitive and increase their income. Ministry of MSME, which aims to support at least one cluster in each district in the future. SFURTI clusters are of two types i.e., Regular Cluster (500 artisans) with Government assistance of up to Rs.2.5 crore and Major Cluster (more than 500 artisans) with Government assistance up to Rs.5 crore. The artisans are organized into SPVs…
03 December, 2021
MSME
Inflation- Its impact on the macroeconomic stability Introduction Consumer Price Index (CPI) rose by 4.06% in January, marking a deceleration for a second straight month to a 16-month low. Reasons in decline of retail inflation Bumper kharif crop: The Consumer Food Price Index reflected a gain of a mere 1.89% last month as vegetable prices saw a disinflation of 15.8% and cereal prices eased considerably for a second month in the wake of kharif crop arrivals. Good rabi harvest: Rising prospects of a good rabi harvest Vegetable production: Larger winter arrivals of key vegetables Avian flu fears: Softer egg and…
19 February, 2021
Inflation
Provident Funds to be Taxed at withdrawal- Budget 2020-21 Introduction The income tax law proposed in the Finance Bill, 2021, has triggered anxieties for the salaried class: withdrawing tax exemption on interest income accrued into Provident Fund accounts arising out of employee contributions exceeding ?2.5 lakh ‘in a previous year in that fund,’ on or after April 1, 2021. Reason Some employees are contributing huge amounts into their PF accounts and getting tax-free incomes. Subsequently, the Revenue Department has pointed out the tax will only affect a small group of ‘high net-worth individuals’ (HNIs); the 100 largest employees’ PF (EPF)…
18 February, 2021
Tax
Ashok Dalwai Committee The government announced to double farm incomes by 2022 in its Union Budget 2016-17. In line with this, it appointed an 8-member inter-ministerial committee headed by Ashok Dalwai, to consider major reforms in the agriculture sector. It was tasked to prepare a blueprint for a transition of farm policies from being production-oriented to based on incomes or value addition.
15 February, 2021
Economic reforms
Ngozi Okonjo-Iweala is the New WTO Head Ngozi Okonjo-Iweala has been appointed the new chief of the World Trade Organization, becoming the first woman to ever lead the institution and the first African citizen to take on the role. Roles and functions of Director General of WTO: The director-general of the World Trade Organization is the officer of the World Trade Organization responsible for supervising and directing the organization’s administrative operations. The Director-General has little power over matters of policy – the role is primarily advisory and managerial. The Director-General supervises the WTO secretariat of about 700 staff and…
17 February, 2021
WTO
Digital Services Tax Why in news? United States Trade Representative (USTR) reported that India’s DST is discriminatory & inconsistent with international tax principles. What is Digital service tax (DST)? Digital companies are not adequately taxed because they don’t have a physical location in the markets where they operate. DST aims to ensure that non-resident, digital service providers pay their fair share of tax on revenues generated in the Indian digital market. How does India’s DST evolve? In 2016, Akhilesh Ranjan Committee suggested to create a level-playing field between online businesses and brick-and-mortar businesses. Since digital businesses don’t have a physical presence but enjoy…
13 February, 2021
Tax
Seaweed Mission Why was this mission launched? Out of the global seaweed production, China produces 57%, Indonesia 28%. Whereas, India is having a mere share of 0.01-0.02%. Purpose: Under the mission, TIFAC will demonstrate a model for commercial farming of seaweeds, and it’s processing for value addition. It will boost the national economy. Benefits of Cultivating Seaweed: It is estimated that if seaweed cultivation is done in 10 million hectares or 5% of the EEZ area of India, it can provide employment to 50 million people. Additional benefits of Seaweed cultivation; Improves national GDP; improves ocean productivity; Reduce algal blooms…
SAKSHAM (Shramik Shakti Manch) SAKSHAM (Shramik Shakti Manch) is an initiative of the Technology Information, Forecasting and Assessment Council (TIFAC). It is a dynamic job portal for mapping the skills of Shramiks (Labourers). It will help in identifying skill proficiency levels and developing Skill Cards for Shramiks. It will directly connect Shramiks with MSMEs eliminating middlemen/ labour contractors. It will facilitate the placement of 10 lakh blue-collar jobs (pan-India).
12 February, 2021
Labour
Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) Prime Minister Modi initiated a scheme for the development of commercial organic farming in the region in 2015 which later became to be known as “Mission Organic Value Chain Development for North Eastern Region” (MOVCDNER) Under MOVCDNER, the FPCs get access to shared infrastructure including collection centres, custom hiring centres, processing infrastructure and packhouses, allowing them to add value to their products and market them well. The scheme provides end-to-end support to the farmers from farm to fork including quality products, effective postharvest management, value addition through processing and direct…
12 February, 2021
Agriculture
CPI-Agriculture Labour and CPI-Rural Labour Consumer Price Index (CPI) for Agricultural Labourers (AL) and Rural Labourers (RL) for the month of January 2021 is decreased. The major contribution towards the fall in general index of AL and RL came from the fall in prices of pulses, onion, potato, brinjal etc. The fall/rise in index varied from State to State. Consumer Price Index It examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking changes in price over time for each item in the predetermined…
20 February, 2021
Inflation
Ease of Doing Business Rankings The ease of doing business index is an index created jointly by Simeon Djankov and Gerhard Pohl, two leading economists at the World Bank Group. The report is released by the World Bank. Why in news: 2020 data irregularities controversy: Several major newspapers – including the Financial Times, The Economist, and The Wall Street Journal – report that the data of China, Azerbaijan, United Arab Emirates, and Saudi Arabia among others were suspected to be “inappropriately altered” in the 2020 Doing Business publication. In light of the data irregularities found in both the 2018 and 2020 reports, the World Bank announced on 27 August 2020 that it would…
21 February, 2021
Economic Data
Cryptocurrency Context The government intends to bring in a law on cryptocurrencies to put an end to the existing ambiguity over the legality of these currencies in India. The government has, suggested that it does not consider them to be legal tender. What is Bitcoin? Bitcoin is a type of digital currency that enables instant payments to anyone. Bitcoin was introduced in 2009. Bitcoin is based on an open-source protocol and is not issued by any central authority. Bitcoin is a peer-to-peer currency. Bitcoin is the first decentralised digital currency. Disadvantages Such currencies are: highly volatile, used…
12 February, 2021
Digital currency
The new Public Sector Enterprises Policy The new public sector enterprises policy envisages that the strategic sectors have a limited number of players restricting it to maximum of four public sector enterprises of a holding nature. The remaining enterprises would be rationalised in terms of mergers, amalgamations and privatisation if feasible. As part of the ‘Aatmanirbhar Bharat Abhiyan’, Finance Minister Nirmala Sitharaman had announced that there would be a maximum of four public sector companies in strategic sectors, and state-owned firms in other segments would eventually be privatised. Under the New Policy: Strategic: Atomic energy, space, defence, trans and telecom,…
20 February, 2021
Defense procurement
Majuli-Jorhat Bridge A 6.8 km-long two-lane major bridge is being constructed over the Brahmaputra between Majuli (north bank) and Jorhat (south bank) on NH-715K. This bridge will provide all-time access to the people living in Majuli town with rest of Assam to meet their health, education and day to day development activities. The constructions of this bridge also provide a safe evacuation access to the people of Majuli Island during flood in Brahmaputra River. Majuli island is famous for Mishing tribe who practice Sattariya folk dance.
19 February, 2021
Infrastructure
Dhubri-Phulbari Bridge A 19-km-long four-lane Bridge between Dhubri (Assam) and Phulbari (Meghalaya) over the river Brahmaputra on NH-127B will be constructed. Once completed in 2028, it will be India's longest bridge. This bridge will reduce travel time between Assam and Meghalaya by 6 hours, and distance to 19 km from 200 km. Through this bridge, Assam and Meghalaya will have a direct connection with West Bengal. It will provide a third alternative link to Meghalaya, Manipur, Mizoram, Tripura and Barak valley region of Assam with the rest of the Country.
18 February, 2021
Infrastructure
Production-Linked Incentive Scheme for the Telecom Sector Aim of the scheme: It will make India a global hub for manufacturing telecom equipment. It will create jobs and reduce imports, especially from China. The focus of the scheme: The scheme will offset the huge import of telecom equipment worth more than Rs 50,000 crore. It will encourage foreign manufacturers and domestic manufacturers to set up production units in India. Coverage: The scheme will cover domestic manufacturing of equipment such as core transmission equipment, 4G/5G and next-generation radio access network and wireless equipment, Internet of Things (IoT) access devices, enterprise equipment such as switches…
18 February, 2021
Industry
Liquidity Coverage Ratio Liquidity Coverage Ratio (LCR) indicates the proportion of highly liquid assets held by banks to ensure their ability to meet short-term obligations. This ratio is essentially a generic stress test that aims to make sure that financial institutions possess suitable capital to ride out any short-term liquidity disruptions. How to Calculate the Liquidity Coverage Ratio? The LCR is calculated by dividing a bank's high-quality liquid assets by its total net cash flows, over a 30-day stress period. The high-quality liquid assets include only those with a high potential to be converted easily and quickly into cash.
18 February, 2021
Terminology
Strategic Disinvestment Policy for Public Sector Enterprises The policy promised as part of the Atma Nirbhar Bharat package, states the government will exit all businesses in non-strategic sectors, with only a ‘bare minimum’ presence in four broad sectors. These strategic sectors are — atomic energy, space and defence; transport and telecom; power, petroleum, coal and other minerals; and banking and financial services. It will help the exchequer stop throwing good money after bad, and funnel it into more productive endeavours.
10 February, 2021
Investment
An introduction to Budget 2021-22 Introduction There is greater spending on health care and some fiscal push to undergird the struggling demand in the pandemic-hit economy. The Union Budget for 2021-2022 presented to Parliament on Monday, instead reveals an estimated health outlay of ? 74,602 crore, almost 10% lower than the revised estimate of? 82,445 crore was earmarked for health spending in the current fiscal year. More focus on drinking water and sanitation The Minister, however, has claimed a 137% increase in the budgetary outlay on ‘health and well-being by including a one-time expenditure of? 35,000 crores were set aside…
02 February, 2021
Budget
The Hindu Data 09 to 11 Feb Digital Exclusion Digitally excluded Indian stand at greater than 50% among which 40% are phones with no internet connectivity like feature phones and around 10% are non mobile users. Manual Scavenging Nearly 57% of manual scavengers as of Jan 2020 were from UP, followed by MH UK. High sewer deaths, were reported from UP, TN, DL followed by MH, GJ, HR. Significant number of Families of victims of sewer deaths didn't receive monetary compensation as per Supreme Court directive.eg. In 30 out of 32 deaths in Maharashtra, no compensation was received. Data by…
16 February, 2021
Economic Data
Tax on PF withdrawals Introduction The income tax law proposed in the Finance Bill, 2021, has triggered anxieties for the salaried class: withdrawing tax exemption on interest income accrued into Provident Fund accounts arising out of employee contributions exceeding 2.5 lakh ‘in a previous year in that fund,’ on or after April 1, 2021. Issue The rationale — some employees are contributing huge amounts into their PF accounts and getting tax-free incomes. Views of the Revenue Department The Revenue Department has pointed out the tax will only affect a small group of ‘high net-worth individuals’ (HNIs); the 100 largest employees’…
18 February, 2021
Tax
Retail Direct Gilt Securities Account for Retail Customers by RBI The RBI's proposal to provide direct access to retail investors to its government securities investment platform opens the door to this risk-free investment for retailers. Retail investors can now directly open their gilt accounts with the RBI through the 'Retail Direct’ facility to access both the primary market – where investors buy directly from the issuer — and secondary markets where trading takes place among investors. G-secs are debt instruments issued by the government and considered the safest form of investment. Stock exchanges till now aggregated the demand for gilts…
07 February, 2021
Banking
Concept of Bad Bank as Proposed in the Budget Finance Minister in her Budget speech revived the idea of a ‘bad bank’ by stating that the Centre proposes to set up an asset reconstruction company to acquire bad loans from banks. What is a ‘bad bank’? A bad bank is a financial entity set up to buy non-performing assets (NPAs), or bad loans, from banks. The aim of setting up a bad bank is to help ease the burden on banks by taking bad loans off their balance sheets and getting them to lend again to customers without constraints. The idea…
07 February, 2021
Banking
Budget Announcement for One Person Companies Finance Minister Nirmala Sitharaman announced measures to ease norms on setting up one-person companies (OPCs). What is a one-person company? A one-person company is a company that can be formed by just one person as a shareholder How are they different from other companies? These companies are different to private companies which require a minimum of two members to establish. the person and the company are considered separate legal entities. In sole proprietorship, the owner and the business are considered the same. In a one-person company, the sole owner’s liability is limited to that person’s…
07 February, 2021
Company laws
Currency Swap Agreement between SL & India The Central Bank of Sri Lanka (CBSL) settled a $400 million currency swap facility from the Reserve Bank (RBI) of India. What is a Currency Swap Facility? The term swap means exchange. Under this agreement, two contracting countries loan each other a specified amount in local currencies. Currency swap agreements involve trade in local currencies, where countries pay for imports and exports at pre-determined rates of exchange without the involvement of a third-country currency like the US dollar. Benefits of Currency Swap facility: The swap operations carry no exchange rate or other market…
07 February, 2021
Financial Market
New Metro Rail Projects Proposed in the Budget FM Nirmala Sitharaman in her budget announcement stated that Metro Lite and Metro-Neo technologies will be deployed to provide metro rail systems in Tier-2 cities and the peripheral areas of Tier-1 cities, at much lesser costs with the same experience, convenience and safety. About Metro Neo Metro Neo is a mass rapid transit system providing low-cost, energy-efficient and eco-friendly urban transport solution for tier 2 and tier 3 cities. Drawing power from overhead wires, Metro Neo will not run on track but on road. It is suitable for places where traffic is huge during peak time. The Maharashtra government has…
04 February, 2021
Railways
RBI on prioritising economic growth Present Stance of RBI The RBI’s Monetary Policy Committee (MPC) has expectedly yet again left benchmark interest rates unchanged and reiterated that it will continue with its accommodative stance (cheap money policy), at least into the next fiscal year, in order to secure a sustained economic recovery. The central bank’s rate setting panel has reasoned that while there are promising signs in the welter of data that it has looked at, the ongoing recovery is “still to gather firm traction” making it crucial to provide continued policy support for restoring growth. Retail inflation in India…
08 February, 2021
RBI
Interest Rate Growth Differential "If the interest rate paid by the government is less than the growth rate, then the intertemporal budget constraint facing the government no longer binds."- economist Olivier Blanchard. The “intertemporal budget constraint” means that any debt outstanding today must be offset by future primary surpluses. If the Interest Rate-Growth Differential (IRGD), the difference between the interest rate and growth rate, becomes negative, the governments need not worry about deficits since the growth would take care of the interest payment obligations. This would ensure the sustainability of public debts. The Economic Survey argues that in India, the…
03 February, 2021
Terminology
NH-66 to be redeveloped as an economic corridor The centre has proposed to develop NH-66 as an economic corridor in the recent budget announcement. NH 66 Runs roughly north-south along the western coast of India Connects Panvel (a city south of Mumbai) to Cape Comorin (Kanyakumari), Passing through the states of Maharashtra, Goa, Karnataka, Kerala and Tamil Nadu. Major cities include Panjim, Mangaluru, Kochi
03 February, 2021
Infrastructure
Budget 2021 and Public Transportation With a clear focus on the expansion of Metro Rail and bus services through Central funding, Budget 2021 has recognised a core component of urbanisation. Comfortable, safe and affordable commuting has well-recognised multiplier effects for the economy and more generally for public health, although COVID-19 has had the perverse effect of driving people away to the safety of personal cars and two-wheeler bubbles. There is little doubt that when the pandemic is under control, more people will return to clean and green mass mobility. Finance Minister Nirmala Sitharaman’s announcement of Central funding of? 1,957 crore,…
04 February, 2021
Budget
TRAI Regulations The Delhi High Court on Wednesday ordered the Telecom Regulatory Authority of India (TRAI) to ensure “complete and strict” implementation of the regulation issued by it in 2018 for curbing unsolicited commercial communications (UCC). Telecom Regulatory Authority of India It was established in 1997. It is a statutory body. It is an independent regulator for telecom services and tariffs in India. Before TRAI, Central Govt used to regulate it. Objectives: Digital India: Ubiquitous and Affordable Connectivity. In 2000 it was amended to include TDSAT (Telecom Disputes Settlement Appellate Tribunal). It has adjudicatory functions of TRAI. A Bench…
04 February, 2021
Telecom sector
Law to ban Cryptocurrencies India plans to introduce a law to ban private cryptocurrencies such as bitcoin and put in place a framework for an official digital currency to be issued by the central bank, according to a legislative agenda listed by the government. The law will “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI),” the agenda, published on the lower house website on Friday, showed. The legislation, listed for debate in the current Parliamentary session, seeks “to prohibit all private cryptocurrencies in India, however,…
31 January, 2021
Budget
Analysis of Economic Survey 2020-21 The Economic Survey for 2020-21 is an expansive attempt at reviewing the developments in the Indian economy during the current financial year and providing an outlook for its near-term prospects. Spread over 700 pages, the survey opts for a self-congratulatory tone while highlighting the policy achievements of the government in steering the economy through the treacherous shoals of “the most unfathomable global health emergency experienced in modern history”. Citing an approach that used ‘graded public health measures to transform the short-term trade-off between lives and livelihoods into a win-win that would save both lives and…
Funding for NGOs The Union Home Ministry has laid down a charter for banks which says that “donations received in Indian rupees” by non-governmental organisations (NGOs) and associations from “any foreign source even if that source is located in India at the time of such donation” should be treated as “foreign contribution”. As per the existing rules, all banks have to report to the Central government within 48 hours the “receipt or utilisation of any foreign contribution” by any NGO, association or person whether or not they are registered or granted prior permission under the FCRA. Last September, the Foreign…
30 January, 2021
Foreign investment
Key Highlights of Economic Survey 2020-21 Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2020-21 in Parliament today. The key highlights of Economic Survey 2020-21, which is dedicated to the COVID Warriors, are as follows: Saving Lives and Livelihoods amidst a Once-in-a-Century Crisis India focused on saving lives and livelihoods by its willingness to take short-term pain for long-term gain, at the onset of the COVID-19 pandemic Response stemmed from the humane principle that: Human lives lost cannot be brought back GDP growth will recover from the temporary shock caused by the pandemic An…
30 January, 2021
Economic Survey
President’s Address to Parliament 2021 Honourable Members, This joint sitting of Parliament which is being held during the time of the Coronavirus pandemic has great significance. It is the beginning of a new year and a new decade. We will also be entering the 75th year of India’s independence this year. All the Members of Parliament present here today embody the conviction held by every Indian that the toughest of challenges will deter neither us nor India. Whenever India has remained united, it has been able to attain even seemingly unattainable goals. This solidarity and Pujya Bapu’s inspiration had given…
30 January, 2021
Economic reforms
Republic Day violence: Analysis The chaos and mindless violence unleashed on the national capital by a section of protesting farmers on Republic Day were abhorrent. It is plausible that agents provocateurs infiltrated the farmers’ march but that does not absolve the leaders of responsibility. The chances of fatigued agitators breaking loose were high as were the possibilities of vested interests triggering violence. The leaders of the agitation should have taken note of the divergence in the rank and the rejection by certain recalcitrant groups of the routes for the march they had agreed with the Delhi police. True, no popular…
Analysis of Oxfam: Inequality Virus Report Inequality in India has risen to levels last seen when it was colonised. The additional wealth acquired by India’s 100 billionaires since March when the lockdown was imposed is enough to give every one of the 138 million poorest ?94,045, according to the Oxfam: Inequality Virus Report. An unskilled worker in India would take three years to earn what the country’s richest person earned in one second last year, the report calculates. The worsening inequality in income and opportunities impacts some sections disproportionately due to discrimination based on gender, caste and other factors. The…
28 January, 2021
Poverty
Budget during COVID-19 India’s GDP is estimated at ? 200 lakh crore. The first priority for spending should be health and infrastructure. India has only five beds for 10,000 Indians and ranks 155th on bed availability in the Human Development Report of 2020. Experts opine that the government should increase healthcare spending from 1.5% of the GDP to 2.5%. The National Infrastructure Pipeline https://www.aspireias.com/daily-news-analysis-current-affairs/National-Infrastructure-Pipeline aims to invest ? 111 lakh crore by 2025 in over 6,800 projects. The proposal to set up a Development Finance Institution is still on the anvil. The Chinese government has entered into building social housing…
26 January, 2021
Budget
Analysis of COVID-19 situation in 2021 The course of the coronavirus pandemic in the new year presents a picture of contrasts, with some rich countries running out of vaccines, experiencing a tide of new cases and deaths, and poorer countries going without access to vaccination, while India reports a case decline. Vaccine hesitancy may even be wasting precious vials in some States. Amidst suggestions that the worst is over, the Home Ministry has proposed further relaxations in the protocols for public activity from February, including occupancy levels in cinema theatres, holding of exhibitions and access to swimming pools. This will…
29 January, 2021
Economic crisis
India’s growth rate for 2021: IMF The IMF on Tuesday projected an 11.5% growth rate for India in 2021, making the country the only major economy to register double-digit growth this year amidst the COVID-19 pandemic. The International Monetary Fund’s growth projections for India reflected a rebound in the economy, which is estimated to have contracted by 8% in 2020 due to the pandemic. China is next with 8.1% growth in 2021 followed by Spain (5.9%) and France (5.5%). The IMF said that in 2020 China is the only major country which registered a positive growth rate of 2.3%. India’s…
27 January, 2021
Economic Data
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 3.0 and Analysis On January 15, 2021, the Ministry of Skill Development and Entrepreneurship (MSDE) launched the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 3.0. PM Kaushal Vikas Yojana was launched in 2015. It is an outcome-based and demand-driven skill training scheme. The objective is skill certification and reward schemes. It is implemented by the Center along with states. This is the third phase of the scheme to give a boost to skilling in the country. In this third version, the government wants to focus on matching local skilling requirements with local job opportunities. The thrust…
27 January, 2021
Human resource development
Green Tax The Union Minister for Road Transport and Highways has approved a proposal to levy a ‘green tax’ on old vehicles. Personal vehicles will be charged a tax at the time of renewal of Registration Certification after 15 years. The policy will come into effect from April 1, 2022. Provisions The levy may differ depending on fuel (petrol/diesel) and type of vehicle. The proposal will now go to the States for consultation before it is formally notified. It includes 10-25% of road tax on transport vehicles older than eight years at the time of renewal of fitness certificate. The…
26 January, 2021
Tax
New Scrapping Policy The Centre’s proposed policy to raise road tax on vehicles of a certain age from April 1 next year has the potential to renew a big part of India’s vehicular fleet, reducing air pollution, raising fuel efficiency, and improving safety standards. It has taken the government years to finalise a “tax on clunkers” proposal, under which commercial transport vehicles will have to pay 10%-25% extra on road tax after eight years when renewing the fitness certificate, and, similarly, personal vehicles after 15 years; public transport is given concessions, while hybrids, electrics and farm vehicles are exempt. A…
27 January, 2021
Automobile industry
Meghalaya Illegal Mining According to available government data, Meghalaya has a total coal reserve of 640 million tonnes, most of which is mined unscientifically by individuals and communities. In 2011–12, rat-hole mines produced about 10 million tonnes of coal. This large coal production in a small state had a devastating impact on the environment. Some of the areas of Coal mining in Meghalaya are Ksan in Meghalaya’s East Jaintia Hills What is a rat hole mine? A rat-hole mine comprises a deep vertical shaft with narrow horizontal tunnels, two to four feet in dimension, dug on its sides. Miners (mostly…
27 January, 2021
Mine and minerals
Non-Banking Financial Companies (NBFC) NBFCs are Companies registered under the Companies Act, 1956 engaged in giving loans; acquisition of shares, stocks, bonds, debentures & securities issued by Govt or local authorities; leasing higher purchase insurance, chit fund business.. It does not include any institution whose principle business is Agriculture, Industry, buying or selling of goods other than security or providing any services and sale and purchase constitution of immovable properties. Both NBFC and Banks can issue Demand Draft and has Deposit insurance. NBFCs can’t issue Cheque book. RBI recently strengthened its hold over NBFCs mainly those engaged in infrastructure, deposit, lending and housing sector. After IL&FS case, Forensic auditing is now mandatory. As…
25 January, 2021
NBFC
Status of Education in India during COVID-19 On January 24, we celebrated the third edition of the International Day of Education, a day proclaimed by the United Nations General Assembly to honour education and its value to humanity and sustainable development. Our theme for 2021, ‘Recover and Revitalize Education for the COVID-19 Generation’, places an emphasis on the way the pandemic has negatively affected learning outcomes for students globally and how we should innovate and combine resources to invest more in education. About 1.6 billion students from some 190 countries were affected by the shutdown of schools caused by COVID-19,…
25 January, 2021
Education
National Security Directive for Telecom sector Under the security directive, operators will have to buy equipment from trusted sources. Telecom firms have asked the government to clarify about the entity that will be held liable in the event of a security breach in the network post implementation of the National Security Directive (NSD) in the telecom sector. A meeting was called to work on the road map for trusted products by the NSCS. Telcos wanted the government to come out with clear guidelines [as to] who [would] be responsible for any breach in the network if the government is making…
24 January, 2021
Telecom sector
Prison Tourism Project of Maharashtra The State government will open to visitors jails which once held freedom fighters The Maharashtra government is set to launch “jail tourism” under which historically significant jails in Maharashtra, which are still being used as penal centres, will be opened to visitors to see the barracks where freedom fighters were imprisoned by the British. “Pune’s Yerawada Jail will be opened for first-of-its-kind jail tourism from January 26,” said Home Minister Anil Deshmukh. Mr Deshmukh said freedom fighters including Mahatma Gandhi, Jawaharlal Nehru, Sarojini Naidu, Sardar Vallabhbhai Patel, Motilal Nehru, Lokmanya Tilak and Subhas Chandra Bose…
24 January, 2021
Tourism
Defence procurement for India The Hindustan Aeronautics Limited (HAL) is scheduled to deliver the first batch of three indigenous Light Combat Helicopters (LCH) to Army and Air Force before March 31. They are part of the 15 Limited Series Production (LSP) LCH helicopters approved by the Defence Acquisition Council (DAC). Early this month, the Defence Ministry said in its annual report the contracts for the procurement of the LCH from HAL, additional Harop (P-IV) loitering drones from Israel and upgrade of Unmanned Aerial Systems (UAV) in service are “likely to be signed in the first quarter of 2021”. The Army…
24 January, 2021
Defense procurement
Draft policy to help grow nano, micro-enterprises Udyog Sahayak Enterprises Network put together by FICCI, TISS and Azim Premji University A new policy on the anvil, the Udyog Sahayak Enterprises Network (USENET), may give a major fillip to the growth-stunted nano and micro-enterprises in India’s informal sector. The proposed framework, whose draft was jointly put together by the Azim Premji University, the Federation of Indian Chambers of Commerce and Industry (FICCI), and the Tata Institute of Social Sciences (TISS), is aimed at providing a slew of growth-driven services to over 62 million nano and micro-enterprises that currently employ over 100…
24 January, 2021
Industry
Railways in India Regional Rapid Transit System (RRTS) The country’s first Regional Rapid Transit System (RRTS) is set to use an advanced signalling and train control system. According to the NCRTC, the RRTS will adopt a modern European Train Control System Level 2 signalling over the long-term evolution communication backbone with the adoption of state-of-art Hybrid Level 3. Adoption of this signalling technology adds to the distinction of RRTS, as the first technologically advanced rail network in India will be operational with a design speed of 180 km/hr. The ETCS signalling system will be a key enabler in ensuring interoperability…
27 December, 2021
Infrastructure
SWITCH UAV The Indian Army has signed a $20-million contract with ideaForge, a player in unmanned aerial vehicle (UAV) technology, to procure undisclosed quantities of a high-altitude variant of SWITCH UAV, an indigenous system used in surveillance operations. SWITCH UAV is an indigenous system built to cater to the most demanding surveillance operations of the Indian forces. This fixed-wing vertical take-off and landing UAV can be deployed at high altitudes and under harsh environments for day and night surveillance, ideaForge said in a statement. “UAV player ideaForge has been awarded this one-year contract after it qualified the operational requirements in…
16 January, 2021
Defense industry
Air India flight between Hyderabad and Chicago The first-ever non-stop service of Air India between Hyderabad and Chicago commenced with the maiden flight arriving at the Rajiv Gandhi International Airport (RGIA) here early on Friday. The flight, operating on Wednesdays, left Chicago at 21.30 hours (local time) on January 13 and arrived at 1 a.m. The return flight AI-107 from Hyderabad to Chicago, which operates once a week every Friday, left Hyderabad at 12.50 p.m. to arrive in Chicago at 18.05 hours (local time) the same day with 226 passengers and 16 aircraft crew. amidst fanfare at the airport. The…
16 January, 2021
Airports
Aviation Turbine Fuel (ATF) prices raised for the 4th time What is Aviation Turbine Fuel (ATF)? ATF is Kerosene-based fuel used for powering jet and turboprop engine aircraft. ATF doesn’t come under the GST (Goods and Services Tax) regime. States charge ~30% in sales tax on ATF on top of Excise duty of Center. What is the news? Jet fuel, or ATF, price on Saturday was hiked by 3% — the fourth increase in two months — on firming international oil prices, while petrol and diesel rates remained unchanged after hitting new highs. Aviation turbine fuel (ATF) price was raised by…
17 January, 2021
Energy crisis & security
New Orvakal Airport The Orvakal airport on the outskirts of Kurnool city in Andhra Pradesh has got the approval of the Directorate General of Civil Aviation (DGCA) after the completion of all the mandatory safety inspections and the creation of infrastructure. “With all the efforts and budgetary support of Chief Minister Y.S. Jagan Mohan Reddy and Finance Minister Buggana Rajendranath, the Kurnool / Orvakal airport got the DGCA approval after completion of works as per its specifications,” the Collector said. For complete news on UDAN: click here
17 January, 2021
Airports
The government may raise import duties by 5-10% India is considering raising import duties by 5%-10% on more than 50 items including smartphones, electronic components and appliances in the upcoming budget. The move to increase import duties is part of Prime Minister Narendra Modi’s self-reliant India campaign that aims to promote and support domestic manufacturing, said the sources, who asked not to be named as the discussions are not public. One of the sources said the government was seeking to target additional revenue of about Rs. 200 billion to Rs. 210 billion, as it looks to shore up revenue amid…
19 January, 2021
Tax
Labour laws in India The Union Labour and Employment Ministry is likely to appoint legal consultants this month to look at whether the States’ labour laws are in consonance with the Centre’s four new labour codes, according to senior Ministry officials. The codes on wages, social security, industrial relations and occupational safety, health and working conditions could be implemented before the April 1 target. Labour and Employment Secretary Apurva Chandra told that the rules framed under the codes on social security, industrial relations and occupational safety would be finalised by the end of the month. The rules under the Code…
19 January, 2021
Labour
E-Commerce rules in India What is the news? India is considering revising its foreign investment rules for e-commerce. This move could compel players, including Amazon.com Inc., to restructure ties with some major sellers. The government discussions coincide with a growing number of complaints from India’s bricks-and-mortar retailers, which have for years accused Amazon and Walmart Inc.-controlled Flipkart of creating complex structures to bypass federal rules, allegations the U.S. companies deny. India only allows foreign e-commerce players to operate as a marketplace to connect buyers and sellers. It prohibits them from holding inventories of goods and directly selling them on their…
20 January, 2021
eCommerce
S-400 Triumpf About S-400 Triumpf As India prepares to receive the first batch of S-400 long-range air defence systems by year-end, the first group of Indian military specialists are scheduled to depart for Moscow soon to undergo training courses on the S-400. S-400 supplies initiative is one of the flagship projects in the Russian-Indian military and military-technical cooperation, which historically constitutes the main pillar of the special and privileged strategic partnership between our two friendly countries. Currently, Russia and India are deeply involved in the joint development and production of military equipment, components and spare parts as well as technology…
04 December, 2021
Defense industry
IFSCA becomes Associate Member of IOSCO The International Financial Services Centres Authority (IFSCA) has become an Associate Member of the International Organization of Securities Commissions (IOSCO). The headquarters of IOSCO is at Madrid, Spain. The IOSCO is the international organization of the world’s securities regulators, covering more than 95% of the world’s securities markets, and is also the global standard-setter for the securities sector. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. With this new membership, IFSCA will get the platform to exchange information at the global level and regional level on areas of common interests and…
02 January, 2021
Financial Market
UNDP and PCMC join hands for ‘first social impact bond’ Pimpri Chinchwad Municipal Corporation, Pune has recently signed an MoU with United Nations Development Programme (UNDP) India to co-create India’s first Social Impact Bond (SIB). This is the first time that a government body will act as the ‘outcome funder’ in a bond, whereas traditionally most government-funded public projects require large and early investments by the government with a substantial gestation period of outcomes and involve various kinds of risks. A Social Impact Bond also called a pay-for-success bond or pay-for-success financing or simply social bond is basically a contract with public sector authority,…
02 January, 2021
Financial Market
Light House Projects Prime Minister Narendra Modi laid the foundation stone of Light House projects (LHPs) at six sites across six States through a video conference on 1st January 2021. The LHPs will be implemented in Indore (Madhya Pradesh), Rajkot (Gujarat), Chennai (Tamil Nadu), Ranchi (Jharkhand), and Agartala (Tripura) and Lucknow (Uttar Pradesh). The project is being constructed under the Global Housing Technology Challenge (GHTC)-India. It has been conceptualised by the Union Ministry of Housing and Urban Affairs. Under the programme, over 1,000 houses would be built in each of the six cities in 12 months along with allied infrastructure facilities.
01 January, 2021
Housing sector
Procurement Schemes in India: Government e-Marketplace About Government e-Marketplace(GeM), 2016 (Ministry of Commerce and Industry) GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by centres, States, their organizations and PSUs. Procurement of goods & services by Ministries and CPSEs is mandatory for goods and services available on GeM. It will bring transparency and efficiency in the government buying process. It also provides the tools of e-bidding and reverse e-auction to facilitate the government users achieve the best value for their money. At present, GeM has > 15 lakh products, ~…
25 September, 2021
Industry
Investments in India A continued rise in private investments in the third quarter (Q3) of 2020-21, led by a 102% surge in manufacturing investments, helped India register a healthy 10.3% increase in fresh project spending in Q3 over the previous quarter. However, new capital expenditure proposals from the government collapsed between October and December 2020, as funding constraints began to pinch the States, dragging their new project investments down nearly 25% from the previous quarter. The Q3 project investment numbers suggest a reversal from recent years’ trend of government capital expenditure propping up the economy while the private sector…
11 January, 2021
Investment
Inflation trends in India India’s retail inflation decelerated appreciably to 4.59% in December, from 6.93% in November, dipping below 6% for the first time since March 2020 as food prices cooled. Other data released by the National Statistical Office (NSO) on Tuesday, however, showed that a nascent industrial recovery, which had begun in September, retreated in November as industrial output shrank 1.9%. The lowest consumer price inflation (CPI) print in 14 months was driven by an sharp slowdown in food price inflation, which eased to 3.4% in December, from the preceding month’s 9.5% . India’s index of industrial production (IIP)…
13 January, 2021
Inflation
Atmanirbhar Bharat and India’s Recovery While the global economic recovery has been hit by second waves of infections and more stringent lockdowns in several countries, India’s economy is ‘riding against the COVID-19 wave’ with persistent improvements in economic indicators showing a V-shaped recovery. The new year has dawned with the approval of the long-awaited COVID-19 vaccine and the initiation of vaccination drives in various countries. This gives strength to the optimism on both health and economic fronts despite a continuing surge in global cases and the potential challenge of a mutant strain. “In the global economy, rise in lockdown stringency…
06 January, 2021
Economic reforms
Pipeline Network of India Prime Minister Narendra Modi said that as part of efforts to make India a natural gas-based economy, 10,000 more CNG (compressed natural gas) stations would be opened and several lakh PNG (piped natural gas) household connections given in the coming days. Inaugurating the 450-km Kochi-Koottanad-Mangaluru LNG (liquefied natural gas), Mr. Modi said the facility was part of his government’s “one nation, one gas grid” policy. The government has a concrete plan to move towards a gas-based economy that would be cheaper, convenient and environment-friendly, he said. The Prime Minister said the government would make substantial investments…
06 January, 2021
Energy
Education Reforms Context: UPSC Mains GS III Education (Prelims Mains Interview) The Directorate of Education has issued a circular asking school to follow the new ‘School Bag Policy, 2020’ released by the National Council of Educational Research and Training (NCERT). According to the circular, schoolteachers should inform the students in advance about the books and notebooks to be brought to school on a particular day and frequently check their bags to ensure that they are not carrying unnecessary material. The weight of the school bags, as per the policy, should be 1.6 to 2.2 kg for students of Classes I…
05 January, 2021
Education
FSSAI and Nutrition The Food Safety and Standards Authority of India (FSSAI) has capped the number of trans fatty acids (TFA) in oils and fats to 3% for 2021 and 2% by 2022 from the current permissible limit of 5% through an amendment to the Food Safety and Standards (Prohibition and Restriction on Sales) Regulations. The FSSAI notified the amendment on December 29, more than a year after it issued a draft on the subject for consultation with stakeholders. The revised regulation applies to edible refined oils, vanaspati (partially hydrogenated oils), margarine, bakery shortenings and other mediums of cooking such…
04 January, 2021
FSSAI
Income Tax Dept. to crack down on GST fraud To read everything about Goods and Services Tax: click here Tightening the noose around fraudsters rigging the Goods and Services Tax (GST) regime, the government has roped in the Income Tax Department to tap illicit incomes as part of a crackdown against 7,000 fraud companies, identified using data analytics tools. Any income traceable to the use of fake bills and other GST frauds shall be considered concealed income and attract severe penalties so that direct tax collections may also get a leg-up while better compliance pushed GST collections to a record…
04 January, 2021
Tax
T. S. R. Subramanian Committee Report on Education The T.S.R. Subramanian committee was entrusted with preparing a new education policy for India. The major recommendations are An Indian Education Service (IES) should be established as an all-India service with officers being on a permanent settlement to the state governments but with the cadre controlling authority vesting with the Human Resource Development (HRD) ministry. The outlay on education should be raised to at least 6% of GDP without further loss of time. There should be a minimum eligibility condition with 50% marks at the graduate level for entry to existing B.Ed courses.…
03 January, 2021
Education
World food price index by FAO World food prices rose for a seventh consecutive month in December, with all the major categories, barring sugar, posting gains last month, the United Nations food agency said. The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 107.5 points last month versus 105.2 in November. For the whole of 2020, the benchmark index averaged 97.9 points, a three-year high and a 3.1% increase from 2019. It was still down more than 25% from its historical peak in 2011.…
08 January, 2021
Terminology
India’s Fiscal Deficit to exceed 7% India’s fiscal deficit for the year ending in March is likely to exceed 7% of gross domestic product, three sources told Reuters, as revenue collections suffered from a lockdown and restrictions to rein in the spread of COVID-19. The government had in February projected a deficit of 3.5% for the current year. It estimated government borrowing of Rs. 7.8 trillion, later revised to Rs. 12 trillion, to provide relief to millions of people and businesses hurt by the pandemic. “The fiscal deficit will be bigger than what is estimated by some ... our revenue…
08 January, 2021
Terminology
New Freight Corridor Prime Minister Narendra Modi inaugurated the New Rewari-New Madar section of the Western Dedicated Freight Corridor and flagged off the world’s first 1.5-km-long electrified double stack long haul container train. Mr. Modi said the project was part of the mission to modernise the country’s infrastructure and was being seen as a game changer for the India of 21st century. The section, which became operational after a hard work of five to six years, would be beneficial to farmers, industrialists and businessmen in the National Capital Region, Haryana and Rajasthan. Significance The corridor would lead to the development…
08 January, 2021
Infrastructure
GDP to contract by 7.7% this year India’s real GDP (Gross Domestic Product) is estimated to contract by 7.7% in 2020-21, with GVA (Gross Valued added) shrinking by 7.2%, advance estimates released by the National Statistical Office show. India’s economy had expanded 4.2% in 2019-20, but entered a recessionary phase with two successive quarters of sharp contraction triggered by the COVID-19 lockdowns. Following a 23.9% collapse in the economy in the April-June period, the GDP shrank by 7.5% in the second quarter — leading to a real GDP contraction of 15.7% in the first half of 2020-21. The economy will…
08 January, 2021
Terminology
Global Housing Technology Challenge-India (GHTC-India) initiative With the continuous expansion of India as a knowledge-driven economy, the ‘customer-focused’ and ‘application-driven’ policy for the Indian Telecom Sector, which can form the main pillar of Digital India has become the need of the hour. Prime Minister Narendra Modi laid the foundation stone of six Light House Projects in six cities as part of the Global Housing Technology Challenge-India (GHTC-India) initiative. The aim of the programme is to build around 1,000 houses each in Indore (Madhya Pradesh), Rajkot (Gujarat), Chennai (Tamil Nadu), Ranchi (Jharkhand), Agartala (Tripura) and Lucknow (Uttar Pradesh) over a period…
02 January, 2021
Housing sector
Analysis of Telecom Sector: IUC Charges The end of the Interconnection Usage Charges (IUC) regime on January 1, under which one telecom operator paid a charge to another on whose network a subscriber’s voice call was completed, creates a new era in which these companies can focus on upgrading their networks and service. The measure was delayed by a year by regulator TRAI due to concerns that not all operators were ready, and the shift to more efficient 4G networks and compatible subscriber handsets was slower than anticipated. Now that the need to monitor call termination data and make IUC…
02 January, 2021
Telecom sector
Goods and Service Tax (GST) -Indirect Tax Through 101st Amendment Act guided by Art 301 Govt introduced GST includes both Goods and Services Art 279 A is introduced to make GST workable. Enforced from 1 July 2017. Exceptions Except for Alcohol and Electricity, all items included. 5 Petroleum products are temporarily out of GST (to control losses to the State): Crude Oil, petrol, diesel, ATF and Natural Gas. GST Council Constitutional Body. Responsible for Tax rates, listing of items and any dispute resolution among States and provide participation of all States and UTs. Headed by FM. Represented by FM of…
01 January, 2022
Tax
Core Industries, IIP and Annual Survey of India What is in the news? Output from India’s eight core sectors hit a three-month low in November, contracting 2.6% in the festive month with coal, fertilizers and electricity the only sectors to record positive growth on a year-on-year basis, suggesting the economy is still not out of the woods. The good news is that the Index of Eight Core Industries was revised upwards for both August and October, based on updated data inputs received by the Office of Economic Adviser in the Department for Promotion of Industry and Internal Trade that compiles…
01 January, 2021
Industry
Current Account Surplus What is the news? India’s current account surplus moderated to $15.5 billion (2.4% of GDP) in the second quarter compared with a $19.2-billion surplus (3.8% of GDP) in the April-June quarter. The country had recorded a deficit of $7.6 billion for the quarter ended June, 2019, as per balance of payment data released by the RBI. Balance of Payments (BoP) The balance of payments (BoP) record the transactions in goods, services and assets between residents of a country with the rest of the world. 1) Current Account It records exports and imports in goods and services and…
31 December, 2020
Current Account Deficit
Inflation and Monetary Policy Committee What is the news? An RBI study has said maintaining 4 per cent inflation is appropriate for India as targeting a lower rate could impart deflationary bias to the monetary policy. What is Inflation? Inflation can be defined as a calculated surge in the average prices of goods and services for a longer duration in the economy. It is a macro concept, wherein the effect of inflation is seen over a large basket of goods. The ultimate effect of inflation is that the value of money is reduced i.e., the purchasing power of money is…
31 December, 2020
Inflation
Deep Sea Ports of India - UPSC West Bengal cabinet approves construction of 'state's first deep sea port in Tajpur. West Bengal's main port is Kolkata Port (including Haldia Port), but because of the shallow depth of the Hooghly river, it is impossible to anchor ocean-going vessels there. The Vizhinjam International Deepwater Multipurpose Seaport, also known as the Vizhinjam International Seaport and the Port of Trivandrum, is a port that as of 2020 is under construction on the Arabian Sea coast at Vizhinjam in Thiruvananthapuram, Kerala, India.
30 December, 2020
Ports
UDAN (Ude Desh ke Aam Nagrik), 2016 It is a regional connectivity scheme to develop smaller regional airports to allow easier access to aviation services. It is a part of the National Civil Aviation Policy (NCAP). Objectives Operationalization and development of 425 underserved and unserved airports. Boost inclusive economic development by faster connectivity. Development of air transport infrastructure in remote areas. It is funded jointly by Center and States. The duration of the scheme is of 10 years. Airlines are selected through a competitive bidding process. The Center will provide Viability Gap Funding (VGF), concessional GST on tickets, etc.…
30 December, 2020
Airports
Modiji on Kisan Rail and Farm Protests Amid continuing protests by farmers near the Delhi border over the new farm laws, Prime Minister Narendra Modi flagged off the 100th “Kisan Rail” service from Sangola in the Solapur district of Maharashtra to Shalimar in West Bengal. He said the Centre’s policies that aimed at providing access to newer and bigger markets for smaller farmers were “clear” and its “intentions are transparent”. Mr. Modi said the service would transform the economics of Indian agriculture while strengthening the country’s cold supply chain. In August, the first ‘Kisan Rail’ train dedicated to agriculture and farmers…
29 December, 2020
Agriculture reforms
Food Security and Food Commissions in India - UPSC Context: UPSC GS Paper III Food Security of India (Prelims Mains Interview) What is in the news? Activists of Rajasthan are upset about the new Food Commission. What is National Food Security Act, 2013? (Except Antyodaya Anna Yojana) In PUCL vs Union of India, SC said the Right to food is essential to the Right to Life (Art 21). Hence NFSA has a rights-based approach. The objective is to provide food and nutritional security in the human life cycle approach. All the above schemes PDS, RPDS, and TPDS are merged except…
29 December, 2020
Food security
Modiji's Man ki Baat Modiji urged people to make a New Year resolution to substitute foreign-made products for indigenous goods in 2021 “for the sake of the country”. Mr. Modi also asked manufacturers to make sure that Indian-made products are up to global standards, as a part of the government’s Atmanirbhar Bharat (self-reliant India) push and the ‘Vocal for Local’ campaign. He reiterated his earlier appeal to Indians to make a list of products used daily, identify which ones are made abroad and look for Indian substitutes. “Think of things manufactured abroad that have permeated our lives unknowingly, in a…
28 December, 2020
Economic reforms
Ease the exam pressure About NEET: The National Eligibility Entrance Test (NEET), formerly the All India Pre-Medical Test (AIPMT), is the qualifying test for MBBS and BDS programmes in Indian medical and dental colleges. It is conducted by the National Testing Agency (NTA). The NEET exam is conducted online and in 11 languages — English, Hindi, Marathi, Odia, Tamil, Marathi, Urdu Bengali, Telugu, Kannada, and Assamese. The duration of the examination is three hours and a candidate needs to answer 180 questions. The exam paper is divided into three sections — Physics, Chemistry and Biology (Botany and Zoology). NEET is…
28 December, 2020
Education
Three Farm Acts-Agriculture Protest and activism GS-Paper-2-Paper-3 Agriculture Reforms (PT-MAINS) On 27 September 2020, President his assent to the three 'Agriculture Bills' that were earlier passed by the Indian Parliament. These Farm Acts are as follows: Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 Act: It creates a national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produces. Provisions: (a) Farming Agreement: The Act provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any…
26 December, 2020
Agriculture reforms
RBI warns illegal digital lending apps Individuals and small businesses are falling prey to a growing number of unauthorised digital lending platforms/mobile. Reserve Bank of India has advised public to be wary of unauthorised digital lending platforms and mobile apps. RBI urged them to verify antecedents of the company loans online or through mobile apps. The advisory comes in the backdrop of at least three borrowers in Telangana committing suicide in the recent past, following alleged harassment by personnel of such lenders, and many more complaining of being subjected to coercive methods after defaulting on repayments. RBI said “legitimate public lending activities can be undertaken by banks, nonbanking financial companies (NBFCs) registered with RBI and other entities who are regulated by the State governments under statutory provisions, such as the money lending acts of the States concerned.” The central bank also advised consumers never to share copies of KYC documents with unidentified persons or unverified/unauthorised apps. They can report such apps/bank account information associated with the apps to law enforcement agencies concerned or use the sachet portal (https://sachet.rbi.org.in) to lodge complaints. The RBI said it had mandated digital lending platforms used on behalf of banks and NBFCs to disclose the name of the bank(s) or NBFC (s) upfront to the customers.
24 December, 2020
Banking
About Foreign direct investment (FDI) The regulations for foreign investment in India have been framed by the RBI in terms of Sections 6 and 47 of FEMA, 1999. FDI is an investment from a party in 1 country into a business or corporation in another country with intention of establishing a lasting interest. RBI is the regulator but DPIIT (Ministry of Commerce & Industry) is implemented through consolidated FDI Policy. It is a source of non-debt finance for the economic development of the country. Lasting interest differentiates FDI from FPI, where investors passively hold securities from a foreign country. It can…
12 December, 2021
FDI REFORMS
Context: Public infrastructure is essential for enhancing the quality of public life and social capital. Guiding by her promise of DIGITAL INDIA and access to all the MINIMUM Internet GoI came out with PM-WANI. This topic is highy important for UPSC-PT and Mains. Union Cabinet cleared a document by the Department of Telecommunications (DoT) to set up public Wi-Fi access-PM-WANI network interfaces, first recommended by the Telecom Regulatory Authority of India (TRAI) in 2017. About This will involve multiple players, including PDOs, PDOAs, app providers, and a central registry. Wi-Fi It is a Local Area Networks (LANs) to operate without cables and wiring, making…
25 November, 2021
Infrastructure
National Infrastructure Pipeline What is in the news? Center to set up a Development Finance Institution (DFI) with a view to mobilise the Rs. 111 lakh crore required for funding of the ambitious National Infrastructure Pipeline. About National Infrastructure Pipeline India to invest > 102 lakh crore in infrastructure projects by 2024-25. It will be spent the most on Energy > Roads > Urban Infrastructure > Railways. Center, States and the Private sector will share the cost of 39:39:22 formula. Analysis of National Infrastructure Pipeline This will enable Ease of Doing Business like metro in cities and towns. It will…
23 December, 2020
Infrastructure
New irrigation model to help desert villagers Irrigation is an important topic UPSC GS Paper III - Agriculture: Major crops and cropping patterns, Irrigation techniques. Many questions are also asked in UPSC Prelims. What is the news? A new model of minor irrigation through sub-surface porous vessels (SSPV) being developed here is set to benefit the farmers with small land holdings in the villages of the Thar desert. Experiments have indicated a higher yield of farm produce and improvement in the nutrient value of soil after the installation of frustum-shaped vessels at the mounds formed on land. Other Traditional methods of…
22 December, 2020
Agriculture
Green Rating for Integrated Habitat Assessment-12th GRIHA Summit GS-Paper-Economic Issue- PT-MAINS Context: GRIHA buildings ecosystem for sustainability and sanitation in inspiring behavioural change. Cities bear a massive responsibility to balance present & future needs. Facts: **Theme: Rejuvenating Resilient Habitats. Purpose: To serve as a platform to deliberate on innovative technologies and solutions which shall help in creating robust mechanisms for developing sustainable and resilient solutions for the benefit of the entire community. Launch Event: The Vice President of India launched the SHASHWAT magazine and the book '30 Stories Beyond Buildings' during the event. Green Rating for Integrated Habitat Assessment (GRIHA): It is the national rating system of India for any…
17 December, 2020
Housing sector
Centre for Science and Environment - Coal Analysis GS-PAPER-3 Economic issues- Energy security (Mains-I.V) According to the Centre for Science and Environment (CSE), coal will continue to be the mainstay of India’s power generation till at least 2030. But efforts must be made to ensure that it is used efficiently to reduce greenhouse gas (GHG) emissions. Improving fleet technology and efficiency, propagating biomass co-firing and investing in carbon capture and storage are among the measures, among others, that could help cut GHG emissions by 22%. Biomass co-firing is a globally accepted low-cost method for decarbonising a coal fleet. It is an option…
17 December, 2020
Coal sector reforms
International Financial Services Center (IFSC) IFSC seeks to bring in India, those types of financial services and transactions that are currently carried on outside India by overseas FIs and overseas branches of Indian FI subsidiaries. It is also designated as a ‘deemed foreign territory’ which would have the same ecosystem as other offshore locations but is physically on Indian soil. SEZ Act provides for the establishment of an IFSC in India within an SEZ in India and enables the Central Govt to regulate IFSC activities. SEBI, RBI, IRDAI and Dept of Financial Services issued the regulations for IFSC-GIFT under the…
15 December, 2020
Investment
How IFSC/ GIFT City can position India as an International Financial centre Since the 2015 launch of the International Financial Services Centre (IFSC) in Gujarat's GIFT City, several initiatives at policy, regulatory and operational levels have helped India’s IFSC dream take shape and gain attention from far and wide. IFSC has the potential to become an investment gateway for India as apart from providing a global financial platform, it also provides easy access to the fast-growing Indian economy to global investors. The establishment of the IFSC Authority (IFSCA) in April 2020 has also come at a very opportune time when…
15 December, 2020
Investment
Essential Services Maintenance Act The Uttar Pradesh government has extended the Essential Services Maintenance Act in the State, banning strikes in all departments and corporations under it for a period of another six months. About ESMA, 1968: The Essential Services Maintenance Act (ESMA) is an act of Parliament of India. Objective: It was established to ensure the delivery of certain services, which if obstructed would affect the normal life of the people. These include services like public transport (bus services), health services (doctors and hospitals). ESMA gives police right to arrest without a warrant anybody violating the Act’s provisions. Implementation:…
26 November, 2020
welfare
Pradhan Mantri Kisan Sampada Yojana Scheme for Creation of Infrastructure for Agro-Processing Cluster: PMKSY Recently, the Union Minister of Food Processing Industries attended the Independent Management Advisory Committee (IMAC) meeting to consider the proposals received under the Scheme for Creation of Infrastructure for Agro-Processing Cluster (APC) of Pradhan Mantri Kisan Sampada Yojana (PMKSY). Features IMAC approved 7 proposals with a total project cost of Rs. 234.68 crore including grants-in-aid of Rs. 60.87 crore in Meghalaya, Gujarat, Madhya Pradesh, Karnataka and Maharashtra. These projects will leverage private investment of Rs. 173.81 crore and are expected to generate employment for 7750 persons.…
25 November, 2020
Agriculture
Indira Rasoi Yojana: Rajasthan Aim: To provide nutritious food to the poor and needy twice a day at concessional rates. Under the scheme, each plate serves 100 grams of pulses and vegetables each, and 250 grams of chapati and pickles. It aligns with World Food Day’s 2020 theme to grow, nourish and sustain together. Implementation: The local voluntary organisations have been roped in for establishing the centres near the places such as bus stands, railway stations and hospitals for successful implementation of the scheme.
25 October, 2020
Others
Kisan Suryodaya Yojana: Gujarat It aimed at providing daytime electricity to farmers in Gujarat for irrigation and farming purposes. Rs. 3,500 crores will be spent over the next three years for providing solar power to farmers for irrigation during the daytime (5 AM to 9 PM). 10 districts including Dahod, Gir-Somnath and Tapi have been selected under the Scheme for 2020-21. The remaining districts will be covered in a phase-wise manner by 2022-23.
25 October, 2020
Others
Compound Interest Waiver on Moratorium Loans What is Compound Interest Waiver Scheme? Under this, the government will grant eligible borrowers ex-gratia payment of the difference between the compound interest and simple interest for the six-month moratorium period. Ex-gratia payment is the money which is paid due to moral obligation and not due to legal obligation. Simple interest is levied only on the principal amount of a loan or deposit. In contrast, compound interest is levied on the principal amount and the interest that accumulates on it in every period. Eligibility: The scheme shall be applicable for loans availed by Micro,…
26 October, 2020
Banking
ESI Scheme extended to Arunachal Pradesh The ESI Scheme stands implemented in 568 districts in all the States and Union Territories, except Lakshadweep. Recently, the central government has extended the Employees' State Insurance (ESI) Scheme to Arunachal Pradesh, with effect from 1st November 2020. Employees' State Insurance (ESI) Scheme provides social protection to workers and their dependents, in the organised sector, in contingencies, such as sickness, maternity and death or disablement due to an employment injury or occupational hazard. Provisions: The ESI Act, 1948 is applicable to factories and notified establishments in an implemented area employing 10 or more employees…
27 October, 2020
Labour
Participatory Notes P-notes are Offshore Derivative Instruments (ODIs) issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be a part of the Indian stock markets without registering themselves directly. P-notes have Indian stocks as their underlying assets. Though P-note holders have less stringent registration requirements, they have to go through a proper due diligence process of the Securities and Exchange Board of India (SEBI). SEBI: SEBI was established in 1992 in accordance with the provisions of the SEBI Act, 1992. Its functions include protecting the interests of investors in securities and promoting the development of, and…
23 August, 2020
Foreign investment
Walter Scheidel’s Analysis Walter Scheidel, the Austrian economic historian, argues that throughout human history, there have been four types of catastrophic events that have led to greater economic equality: pandemic, war, revolution and state collapse. In Scheidel’s analysis, the decline in inequality is a result of excess mortality that raises the price of labour.
22 August, 2020
Terminology
National Strategy for Financial Education Context The Reserve Bank of India (RBI) has released the National Strategy for Financial Education (NSFE): 2020-2025 document for creating a financially aware and empowered India. It is the second NSFE , the first one being released in 2013. NSFE: This NSFE for the period 2020-2025 has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators viz. RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), etc. under the aegis of the…
22 August, 2020
Financial inclusion
Organic Farming in India Context India ranks 1st in the number of organic farmers and 9th in terms of area under organic farming. Indian Scenario Regarding Organic Farming Sikkim became the first State in the world to become fully organic in 2016. North East India has traditionally been organic and the consumption of chemicals is far less than the rest of the country. Similarly, the tribal and island territories have been traditionally practising organic farming. The major organic exports from India have been flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses. There was an increase of nearly 50%…
21 August, 2020
Agriculture
Atal Ranking of Institutions on Innovation Achievements (ARIIA) It is an initiative of the Ministry of Education, Government of India to systematically rank all the major higher education institutions and universities in India on indicators related to “Innovation and Entrepreneurship Development” amongst students and faculties. More than quantity, ARIIA focuses on the quality of innovations and tries to measure the real impact created by these innovations nationally and internationally. Rank Categorisation: Two broad categories: publicly funded institutions and private or self-financed institutions. The publicly funded institutions have been further categorized into: Institute of National Importance, Central Universities & Central Funded…
21 August, 2020
Education
World Bank may forecast steeper India contraction The World Bank on Wednesday indicated that it may further lower its GDP projections for India and said critical reforms in key areas such as health, labour, land, skills and finance were needed to come out stronger from the COVID-19 crisis. The World Bank, had in May, projected that the Indian economy would contract by 3.2% in FY 2020-21 and rebound slowly in the next financial year. ‘Further challenges’ “Further challenges have emerged in recent weeks which are likely to weigh on the prospects in the near term. These risks include the virus…
20 August, 2020
Economic crisis
Institute of Banking Personnel Selection IBPS is an autonomous body formed in 1984. It is registered under the Societies Registration Act, 1860 and also a Public Trust under the Bombay Public Trust Act, 1950. It was created to render assistance to organisations in the areas of personnel such as recruitment, selection, placement, etc. It has its headquarters in Mumbai, Maharashtra.
20 August, 2020
Banking
Bank of schemes, ideas, innovation & research portal on MSMEs Micro, Small and Medium Enterprises, MSME Minister Nitin Gadkari launched a bank of schemes, ideas, innovation and Research portal - http://ideas.msme.gov.in on MSMEs. About the portal: The portal gives access to all schemes of Union, States and Union Territory Governments and has the provision for uploading ideas, innovations and research in the sector. It has unique features of not only crowdsourcing ideas, but also evaluation and rating the ideas by crowdsourcing. It can also facilitate the inflow of venture capital, and foreign collaboration. Besides, the portal will benefit potential entrepreneurs as…
18 August, 2020
MSME
Plug and play Business model The government intends to promote the scheme of ‘plug and play for further fast-tracking investment proposals, especially for projects having substantial foreign investment. About plug and play ‘Plug and play’ concept normally refers to ready facilities in terms of building, power-water-sewage connectivity, road connectivity, beside other basic things including clearances in hand required to start the industry. This concept gained ground in 2015 when the then Finance Minister Arun Jaitley said in his Budget speech that the government proposes to set up five new Ultra Mega Power Projects, each of 4000 MWs in the plug-and-play…
18 August, 2020
Government policies and interventions
Transparent Taxation — Honouring the Honest Context: Prime Minister Narendra Modi has launched a “Transparent Taxation — Honouring the Honest” platform that provides faceless assessment, faceless appeal and a taxpayers’ charter. Reforms: Reduction in corporate tax from 30% to 22% for existing companies and from 25% to 15% for new manufacturing companies. Abolition of the dividend distribution tax. Steps have been taken to bring efficiency and transparency in the functioning of the Income Tax Department, including Document Identification Number (DIN) and pre-filling of income tax returns to make compliance more convenient. How does it work? With the help of technology,…
14 August, 2020
Fiscal Policy
Defence Ministry to impose import embargo on 101 items The Defence Minister has stated that the Defence Ministry will introduce an import embargo on 101 items beyond the given timeline. The policy change comes in the wake of Chinese transgressions and the build-up along the Line of Actual Control (LAC) in Ladakh. News: The government intends to boost indigenisation of defence production. It aims to reach a turnover of $25 billion through indigenously manufactured defence products. It also expects to export products worth $5 billion. In any government contract over ?200 crore, no foreign company can participate in the tendering…
09 August, 2020
Aatmnirbhar Bharat
Andaman and Nicobar will be a maritime hub Prime Minister has said that the Andaman and Nicobar Islands region, owing to its strategic importance, is going to be developed as a maritime and startup hub. 12 islands of the archipelago have been selected for high-impact projects with an emphasis on boosting trade of sea-based, organic and coconut-based products of the region. Government initiatives: Proposed transhipment hub in the Andaman will help the group of islands become an important centre of blue economy and a maritime and startup hub. Over 300 km of national highway is expected to be completed in…
10 August, 2020
Government policies and interventions
Farm infra scheme A new financing scheme has been launched under the? 1 lakh crore Agriculture Infrastructure Fund is meant for setting up storage and processing facilities, which will help farmers get higher prices for their crops. The scheme will support farmers, PACS [primary agricultural credit societies], FPOs [farmer producer organisations], agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure. These assets will enable farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition.
10 August, 2020
Agriculture
Purchasing Managers’ Index (PMI) GS-Paper-3 Data (PT-Facts) According to the recent IHS Markit India Manufacturing Purchasing Managers’ Index (PMI), India’s manufacturing sector activity contracted at a faster pace in July 2020 than in June 2020. Manufacturing PMI: It stood at 46 in July 2020, down from 47.2 in June 2020. In PMI parlance, a score above 50 means growth, while a score below that denotes contraction. This is the fourth straight month of contraction for the Indian manufacturing sector. In April, the PMI had slipped into contraction mode, after remaining in growth territory for 32 consecutive months. The manufacturing PMI showed some recovery in May, and further…
05 August, 2020
Economic Data
National Education Policy (NEP) 2020 GS-PAPER-3 Education reforms (Mains) Recently, the National Education Policy (NEP) 2020 was announced by the Ministry of Human Resource Development (soon to be called the Ministry of Education). The policy is aimed at transforming the Indian education system to meet the needs of the 21st Century. The new policy seeks rectification of poor literacy and numeracy outcomes associated with primary schools, reduction in dropout levels in middle and secondary schools and adoption of the multi-disciplinary approach in the higher education system. Apart from this, the policy also focuses on early childhood care, restructuring curriculum and pedagogy; reforming assessments…
05 August, 2020
Education
What Is Severance Pay? Severance pay is the compensation and/or benefits an employer provides to an employee after employment is over. Severance packages may include extended benefits, such as health insurance and outplacement assistance to help an employee secure a new position. It is given under Industrial Disputes Act,1947 if a worker is employed for a period of 248 days. Employers offer packages to employees who are laid off, whose jobs are eliminated because of downsizing, or who retire. Some employees who resign or are fired may also receive a severance package. Severance pay can be a goodwill gesture on…
06 August, 2020
Terminology
Defence Production & Export Promotion Policy (DPEPP) 2020 Context: Ministry of Defence (MoD) has put out a draft ‘Defence Production & Export Promotion Policy (DPEPP) 2020’ for public feedback. DPEPP has been drafted with the vision to make India amongst the leading countries of the world in the defence sector, including aerospace and naval shipbuilding sectors, from design to production, with the active participation of public and private sectors and thus fulfilling the twin objectives of self-reliance and exports. Objectives: To achieve a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Billion) in…
05 August, 2020
Defense industry
Medicinal and Aromatic Plants Genetic Resources (MAPGRs) National Medicinal Plants Board (NMPB) and ICAR-National Bureau of Plant Genetic Resources (NBPGR) have entered into an MoU to conserve the Medicinal and Aromatic Plants Genetic Resources (MAPGRs). The conservation will be done in the long-term storage module in the National Gene bank and/or at Regional Station for the medium-term storage module. The authorized institute NMPB and the ICAR-NBPGR on behalf of the ICAR would develop detailed modalities for seed storage of MAPGRs. National Medicinal Plants Board (NMPB) It was set up in 2000. It is working under the Ministry of AYUSH. Mandate…
04 August, 2020
WTO
Credit guarantee extended to larger firms, self-employed Context: The Centre has expanded its credit guarantee scheme for micro, small and medium enterprises (MSMEs) to cover loans given to larger firms, as well as to self-employed people and professionals who have taken loans for business purposes. News The Emergency Credit Line Guarantee Scheme was rolled out as part of the Centre’s Aatmanirbhar package in response to the COVID-19 crisis. It has a corpus of 41,600 crores and provides fully guaranteed additional funding of up to 3 lakh crore. Eligible MSMEs must have an annual turnover up to 100 crore, with outstanding…
02 August, 2020
Banking
Schemes for Electronic Manufacturing in India Context: The government has said that a total of 22 companies have filed applications under the Production-Linked Incentive (PLI) scheme that aims to boost local manufacturing of mobile phones and components. This is expected to bring in additional investment of about 11,000 crores in electronics manufacturing while leading to total production worth 11.5 lakh crore over the next five years Schemes for Electronic Manufacturing Recently, the government notified three schemes involving total incentives of around Rs 48,000 crore for electronics manufacturing, The Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing. The Scheme for…
02 August, 2020
Investment
Higher Food Prices GS-Paper-3 Economy Inflation (Mains) Recently, the Tata-Cornell Institute for Agriculture and Nutrition in New York conducted a study titled “Pandemic Prices: Covid-19 Price Shocks and their Implications for Nutrition Security in India”. It analysed prices of cereals (wheat and rice) and non-cereals (onion, tomatoes, potatoes, five pulses and eggs) in 11 tier-1 and tier-2 cities from 1st March-31st May 2020 compared to the same period in 2019. Following the lockdown, all food groups witnessed a rise in prices, but the rise in prices was higher for non-cereals compared to cereals. After the lockdown was lifted, prices of cereals and non-cereals stabilised quickly while those of protein-rich pulses continued to remain high. Data…
31 July, 2020
Food security, PDS, FCI, Buffer
WTO: Dispute Panels against India GS-Paper-3 WTO- Dispute redressal mechanism (MAINS) Recently, the Dispute Settlement Body (DSB) of the World Trade Organisation (WTO) has set up two dispute settlement panels targeting import duties imposed by India on a number of Information and Communication Technology (ICT) products including mobile phones. It was done on the request of Japan and Taiwan, taking up the number of panels constituted to examine the same tariff-related issue to three. In June 2020, the European Union (EU) had a panel established against India on the same issue. The panels would determine whether India’s customs duties on imports of certain ICT products infringe the WTO’s norms or not. The panels…
31 July, 2020
WTO
Rafale fighter jet deal analysis GS-Paper-3 Internal security (PT-MAINS) December 30, 2002: Defence Procurement Procedures (DPP) were adopted to streamline procurement. August 28, 2007: Ministry of Defence issues Request for Proposal for procurement of 126 MMRCA (medium multi-role combat aircraft) fighters. September 4, 2008: Mukesh Ambani-led Reliance group incorporates Reliance Aerospace Technologies Ltd (RATL). May 2011: Air Force shortlists Rafale and Eurofighter jets. January 30, 2012: Dassault Aviation’s Rafale aircraft comes up with the lowest bid. March 13, 2014: The work Share agreement was signed between Hindustan Aeronautics Limited (HAL) and Dassault Aviation under which they were responsible for 70…
30 July, 2020
Defense procurement
New FDI rules, 2020 The Government of India has made its approval for Foreign Direct Investment (FDI) by neighbouring countries mandatory. This revised FDI policy aims to curb opportunistic takeovers/acquisitions of Indian companies due to the current Covid-19 pandemic. Important points: FDI is allowed under two modes - either through the automatic route, for which companies don't need government approval, or through the government route, for which companies need a go-ahead from the centre. New FDI policy: An entity of a country, which shares a land border with India or where the beneficial owner of an investment into India is…
Open Credit Enablement Network (OCEN) A nationwide pilot of the newly-developed credit protocol infrastructure – OCEN is all set to start. About Open Credit Enablement Network (OCEN): The credit protocol infrastructure is known as Open Credit Enablement Network (OCEN). Indian Software Products Industry Round Table (iSPIRT) has developed the platform. It will mediate the interactions between loan service providers (usually fintechs and mainstream lenders) including all large banks and NBFCs. These will involve multiple banks and thousands of MSMEs. Meanwhile, private equity and venture capital players, angel investors, high net worth individuals and others also could be part of this…
24 July, 2020
MSME
Consumer Protection Act, 2019 Context: The Consumer Protection Act, 2019 came into force on 20th July 2020. Details: The new Act empowers buyers to ask for replacements, refunds or damages from brands, e-tailers and service providers. Aggrieved customers in India will now be able to seek effective legal remedy, on the lines of class action suits seen in many countries. Salient features of the Act: Central Consumer Protection Authority (CCPA): The law proposes a Central Consumer Protection Authority (CCPA) to regulate matters of consumer rights, trade practices and advertisements prejudicial to the interests of the public, and to promote, protect…
22 July, 2020
Government policies and interventions
Zero Hunger by 2030: UN Report GS-Paper-3 Economic development (PT-MIANS) According to a study titled State of Food Security and Nutrition in the World, hunger and malnutrition is increasing around the world. In this scenario, achieving the Sustainable Development Goal (2) of ‘Zero Hunger’ by 2030 will be very difficult. The State of Food Security and Nutrition in the World is the most authoritative global study tracking progress towards ending hunger and malnutrition. **It is produced jointly by the Food and Agriculture Organization (FAO) of the United Nations, the International Fund for Agriculture (IFAD), the United Nations Children’s Fund (UNICEF), the UN World Food Programme (WFP) and the World Health Organization (WHO). Imp Points Increasing…
National Financial Reporting Authority (NFRA) The National Financial Reporting Authority (NFRA) was constituted on 01st October 2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013. Functions and Duties Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government; Monitor and enforce compliance with accounting standards and auditing standards; Oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service; Perform such other functions and duties as may be necessary…
21 July, 2020
Company laws
ASPIRE Portal for Automotive Industry GS-PAPER-3 Economy (PT-MAINS) The International Centre of Automotive Technology (ICAT) is developing a technology platform for the automotive industry called ASPIRE - Automotive Solutions Portal for Industry, Research and Education. The Portal is expected to help in developing a strong and self-reliant automotive industry in India which is in tune with the vision of Make in India and Atmanirbhar vision of the Government of India. The Portal is being developed in line with the initiative by the Department of Heavy Industry (DHI) under the Ministry of Heavy Industries & Public Enterprises. DHI has taken an initiative to promote innovation and to develop the related ecosystem. Objective: To enhance the technological…
20 July, 2020
Education
Basmati and GI tag GS-PAPER-3 IPR India is the only producer of premium Basmati and it has been grown from time immemorial in the Indo-Gangetic Plains (IGP) area of India and 18 districts of Pakistan’s Punjab. It had been a tough battle for the country to protect Basmati name from the encroachment of various nations which all came out with their own versions of Basmati. APEDA got GI tag for the region located in IGP below the foothills of the Himalayas, spread across seven states (Himachal Pradesh, Jammu and Kashmir, Punjab, Haryana, Uttarakhand, Western Uttar Pradesh (26 districts) and Delhi) in May 2010. Reasons…
20 July, 2020
GI Indicators
NISHTHA Programme GS-Paper-3 Education Recently, the National Initiative for School Heads and Teachers Holistic Advancement (NISHTHA) programme has been launched for the first time in online mode in the state of Andhra Pradesh. Imp Points Initially, the NISHTHA programme was launched in 2019 in face-to-face mode to improve learning outcomes at the elementary level in the country. The covid-19 pandemic situation and lockdown have affected the conduct of this programme in face-to-face mode. Therefore, NISHTHA has been customized for the online mode to be conducted through Digital Infrastructure for Knowledge Sharing (DIKSHA) and NISHTHA portals. Digital Infrastructure for Knowledge Sharing DIKSHA Portal was launched by the Ministry of Human Resource Development (MHRD in 2017. It provides…
19 July, 2020
Education
NTPC and Renewable energy & NIIF GS-paper-3 Energy security (PT-MAINS) National Investment and Infrastructure Fund Limited It is a collaborative investment platform for international and Indian investors, anchored by the Government of India. It was set up in December 2015 to catalyse funding into the country’s core sector. It invests across asset classes such as infrastructure, private equity and other diversified sectors in India, with the objective to generate attractive risk-adjusted returns for its investors. It has a targeted corpus of Rs. 40,000 crore to be raised over the years. 49% of which will be funded by the government at any given point of time. Remaining 51% is to be raised…
19 July, 2020
Government policies and interventions
Multidimensional Poverty Index GS-PAPER-3 Poverty (PT-MAINS) The Multidimensional Poverty Index was launched by the United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative (OPHI) in 2010. MPI is based on the idea that poverty is not unidimensional (not just depends on income and one individual may lack several basic needs like education, health etc.), rather it is multidimensional. The index shows the proportion of poor people and the average number of deprivations each poor person experiences at the same time. MPI uses three dimensions and ten indicators which are: Education: Years of schooling and child enrollment (1/6 weightage each, total 2/6); Health: Child mortality and nutrition (1/6 weightage each,…
18 July, 2020
Poverty
‘Pragyata’ Guidelines Union HRD Minister Ramesh Pokhriyal ‘Nishank’ has released ‘Pragyata’ Guidelines for Online Education that can help balance screen time allowed for various classes of school students. The guidelines are important, especially during the current times of COVID-19 pandemic, when online education and digital classrooms have become a norm due to school closure and travel restrictions announced by the governments. HRD Minister unveiled the Guidelines The Union HRD Minister Ramesh Pokhriyal formally unveiled the ‘Pragyata’ Guidelines on 14th July 2020. The guidelines focus on 8 key steps i.e. Plan, Review, Arrange, Guide, Yak(talk), Assign, Track, and Appreciate. Screen time…
15 July, 2020
eLearning
Finding on Fish landings According to Central Marine Fisheries Research Institute (CMFRI) India’s marine fish production has registered a marginal increase of 2.1% in 2019 compared to the previous year. Tamil Nadu took the first position in landings of fishes with 7.75 lakh tones. It was followed by Gujarat (7.49 lakh tones) and Kerala (5.44 lakh tones). While States such as West Bengal (55%), Andhra Pradesh (34%), Odisha (14.5%), Karnataka (11%) and Tamil Nadu (10.4%) recorded increase in landings, the fish catch decreased in Maharashtra, Goa and Kerala compared to the previous year. Central Marine Fisheries Research Institute (CMFRI) It…
11 July, 2020
Fisheri
ASEEM portal Ministry of Skill Development and Entrepreneurship today launched Aatamanirbhar Skilled Employee-Employer Mapping (ASEEM) portal to help skilled people find sustainable livelihood opportunities. The portal will map details of workers based on regions and local industry demands and will bridge demand-supply gap of skilled workforce across sectors. ASEEM portal will provide employers with a platform to assess the availability of a skilled workforce and formulate their hiring plans. It refers to all the data, trends and analytics which describe the workforce market and map the demand for skilled workforce to supply. The Artificial Intelligence-based platform will also provide real-time…
11 July, 2020
Labour
Current Account The current account measures the flow of goods, services, and investments into and out of the country. It represents a country’s foreign transactions and, like the capital account, is a component of a country’s Balance of Payments (BOP). A nation’s current account maintains a record of the country’s transactions with other nations that includes net income, including interest and dividends, and transfers, like foreign aid. It comprises of following components - Visible trade - Export and import of goods, Invisible trade - Export and import of services Unilateral transfers Investment - Income from factors such as land or foreign…
11 July, 2020
Terminology
External Commercial Borrowings External commercial borrowing (ECBs) are loans made by non-resident lenders in foreign currency to Indian borrowers. They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings). The debtors can be the government, corporations or citizens of that country. The debt includes money owed to private commercial banks, foreign governments, or international financial institutions such as IMF and World Bank. For the telecom sector, infrastructure and Greenfield projects, funding up to 50% (through ECB) is allowed. Recently, RBI issued a guideline stating that all eligible borrowers can raise…
11 July, 2020
External commercial borrowing
MSME Emergency Response Programme World Bank and the Government of India signed an agreement for the MSME Emergency Response Programme. It involves $750 million loan from the International Bank for Reconstruction and Development (IBRD). The loan has a maturity of 19 years including a 5-year grace period. The programme aims to support the increased flow of finance into the hands of MSMEs severely impacted by the COVID-19 crisis. It will support the government in providing targeted guarantees to incentivize NBFCs and banks to continue lending to viable MSMEs to help sustain them through the crisis. It will address the immediate liquidity and credit needs…
10 July, 2020
MSME
Investing in Gold Bonds GS-PAPER-3 Economics-Investment (PT-MAINS) The fourth tranche of sovereign gold bonds 2020-21 is open for subscription. Gold bonds: The government introduced the gold bonds scheme in 2015. The scheme was introduced to wean away investors from the physical gold market. These bonds have a maturity period of eight years. But, the investors have the option to exit after the fifth year. Funds raised through such issuances form part of the government’s overall borrowings in a year. What are the benefits of buying gold bonds? Gold bonds offer investors twin benefits of price appreciation along with a fixed…
10 July, 2020
Gold investment
India’s Trade Surplus GS-Paper- 3 Economy TRADE The Reserve Bank of India (RBI) has released India’s balance of payments data for the January-March quarter of 2019-20. During this quarter, India has managed a current account surplus, which is around 0.1% of the GDP. This surplus is largely driven by a lower trade deficit. Data from the Commerce Ministry show that between April and May 2020, India’s trade balance has improved. This surplus is due to the Invisibles, emanating mainly out of services exports and remittances. Due to this surplus, India’s substantial trade deficit turns into a moderate current account deficit. Why does…
10 July, 2020
India's Trade Policy
Equalisation Levy Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Recently, the Central government has stated that it will not extend the deadline for payment of the equalisation levy by non-resident e-commerce players, even though a majority of them are yet to deposit the first instalment of the tax. **The equalization levy is aimed at taxing foreign companies which have a significant local client base in India but are billing them through their offshore units, effectively escaping the country’s tax system. The step has come in the backdrop of the United States Trade Representative (USTR) investigations into taxes adopted or under consideration by 10 nations, including India, on revenues of American digital service…
25 November, 2021
Tax
Mahajobs Portal The Maharashtra Government has launched a portal named ‘Mahajobs’ for job seekers and employers, owing to the economic situation caused by the Covid-19 pandemic. Aim: To make local manpower available to companies and employment opportunities to workers. Functioning: The job seekers and providers/industrial units can register themselves on the Portal. The Portal has identified 17 sectors including engineering, logistics, and chemicals, and provides for selecting jobs across 950 trades mainly for local youth who would need to produce domicile certificates. There would be regular reviews of the jobs provided. There would be a study on the kind of problems faced by employers as well as youth seeking employment. Developed by: Maharashtra Industrial…
08 July, 2020
Employment
National Career Service (PT) The Ministry of Labour and Employment has started offering free online career skills training through its National Career Service (NCS) project for job-seekers registered with it. The training will assist the learners in enhancing personality development with modules on corporate etiquette, improving interpersonal skills, making impactful presentations including other necessary soft skills demanded by the industry today. The training module is available in Hindi and English on the NCS portal. The course has been launched in partnership with TCSiON ( a unit of Tata Consultancy Services). Launch: It is a Five Year Mission Mode Project launched by the Prime Minister on 20th July 2015. It is within the umbrella of the e-governance…
08 July, 2020
Employment
World Bank's Support to India Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) World Bank With 189 member countries, the World Bank Group is a unique global partnership which consists of five development institutions. International Bank for Reconstruction and Development (IBRD) provides loans, credits, and grants. International Development Association (IDA) provides low- or no-interest loans to low-income countries. The International Finance Corporation (IFC) provides investment, advice, and asset management to companies and governments. The Multilateral Guarantee Agency (MIGA) insures lenders and investors against political risk such as war. The International Centre for the Settlement of Investment Disputes (ICSID) settles investment-disputes between investors and countries. India is not…
08 July, 2020
MSME
Performance Assessment of Highways Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Recently, the National Highways Authority of India (NHAI) has decided to undertake performance assessment and ranking of the highways in the country. The assessment activity majorly intended to improve the quality of roads in the country. Parameters for Assessment: The criteria for the assessment have been broadly categorised in three main heads namely, Highway Efficiency (45%), Highway Safety (35%) and User Services (20%). Additionally, important parameters like operating speed, time taken at toll plaza, road signages, road markings, accident rate,illumination, availability of Advanced Traffic Management System (ATMS), functionality of structures, cleanliness, plantation, wayside amenities and customer satisfaction…
08 July, 2020
Infrastructure
New National Logistics Law The Ministry of Commerce and Industry is considering replacing the Multimodal Transportation of Goods Act, 1993 (MMTG) with a National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS). MMTG provides for the regulation of multimodal transportation of goods from any place in India to any place outside India. Multimodal transportation refers to a combination of more than one mode of movement, such as rail, road or sea, for end-to-end delivery of goods. It was introduced to facilitate the exporters and give them a sense of security in transporting their goods. Aim: NLEAPS aims to streamline the logistics ecosystem in the country, with a view…
08 July, 2020
Logistic
MGNREGA and annual work limit Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) About MGNREGA The Mahatma Gandhi National Rural Employment Guarantee Act, earlier known as the National Rural Employment Guarantee Act was passed on 7th September 2005 to augment employment generation and social security in India. It covers all districts of India except the ones with 100% urban population. Key objectives: Generation of paid rural employment of not less than 100 days for each worker who volunteers for unskilled labour. Proactively ensuring social inclusion by strengthening the livelihood base of rural poor. Creation of durable assets in rural areas such as…
08 July, 2020
Unemployment
Core’s contraction: On slowing economy Context # Output in the eight core industries suffered an overall contraction for a third straight month in May, shrinking 23.4%, as the pandemic-induced lockdown kept large parts of the economy shuttered, the Commerce Ministry’s provisional figures show. Core Sector Data # Of the eight, all but one posted declines in production compared with a year earlier, with six sectors witnessing double-digit drops. # Except fertilizers, all other sectors have shown decline. # Steel and cement were the worst hit, slumping 48.4% and 22.2%, respectively, as construction activity and infrastructure projects remained mostly stalled.…
03 July, 2020
Industry
Micro Food Processing Enterprises Scheme Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Recently, the Ministry of Food Processing Industries (MoFPI) launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme as a part of the ‘Atmanirbhar Bharat Abhiyan’. The Scheme is expected to generate a total investment of Rs. 35,000 crore and 9 lakh skilled and semi-skilled employment. Features: One District One Product (ODOP) Approach: The States would identify food products for districts keeping in view the existing clusters and availability of raw material. The ODOP could be perishable produce-based or cereal based or a food item widely produced in an area. E.g. mango, potato, pickle,…
02 July, 2020
Food processing industry
Self Reliance- Atma Nirbhar Abhiyan Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) In an effective response to an unprecedented emergency (Covid-19 pandemic) that disrupted most channels of national and international trade, Indian Prime Minister, under Atma Nirbhar Abhiyan, gave a clarion call for the country to become self-reliant. India in the pre-1991 era also strived for achieving self-reliance and import substitution. While it resulted in a diversified economic base for heavy industries such as Steel, coal, petroleum refinery etc, India fell behind the curve on quality, technology and productivity. Economists attribute these shortcomings to the then industrial and trade policies, particularly industrial…
01 July, 2020
Self reliance
National Statistics Day This year, Statistics Day (29th June) will be celebrated virtually, in view of the travel and safety advisories on account of the global Covid-19 pandemic. Imp Points Every year, Statistics Day is celebrated on 29th June, the birth anniversary of Prof. Prasanta Chandra Mahalanobis, to recognise his invaluable contribution to establishing the National Statistical System. Aim To popularise the use of statistics in everyday life and sensitise the public as to how statistics help in shaping and framing policies. To raise public awareness, especially among the younger generation, about the role of statistics in socio-economic planning. The theme for 2020: SDG-3 (Ensure healthy lives and promote well-being for all…
30 June, 2020
Economic Data
Liquidity Measures Extended Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Recently, the Reserve Bank of India (RBI) has extended the relaxation relating to Marginal Standing Facility (MSF) scheme till 30th September 2020. It has also extended the relaxation relating to maintenance of Cash Reserve Ratio (CRR) up to 25th September 2020. This was done in view of the hardships being faced by banks in terms of social distancing at work and consequent strain on reporting requirements. Imp Points Marginal Standing Facility: The RBI, as a temporary measure, had increased the borrowing limit of scheduled banks under the MSF scheme from 2% to 3% of their deposits with effect…
30 June, 2020
Liquidity measures
Statistics Day Theme: SDG- 3 (Ensure healthy lives and promote well-being for all at all ages) & SDG- 5 (Achieve gender equality and empower all women and girls) The Government has been celebrating Statistics Day, to popularise the use of Statistics in everyday life and sensitise the public as to how Statistics helps in shaping and framing policies. It has been designated as one of the Special Days to be celebrated at the national level and is celebrated on the birth anniversary of Prof. P C Mahalanobis, on 29th June, in recognition of his invaluable contribution to establishing the National…
29 June, 2020
Economic Data
“Global solar grid could cause sun burns” Part of: GS-III- Energy security (PT-MAINS-PERSONALITY TEST) In recent years, India has leveraged forums like the G20 and the UNFCCC to collaborate with major powers in new areas of growth and in bringing about global reforms. One such initiative is One Sun One World One Grid’ (OSOWOG). Under OSOWOG vision, India seeks to replicate its global solar leadership (International Solar Alliance) by encouraging the phased development of a single globally connected solar electricity grid to leverage the multiple benefits (Low cost, Zero pollution) of solar energy. The underlying logic behind OSOWOG is that a grid spread across multiple time zones…
29 June, 2020
Government policies and interventions
One Sun One World One Grid GS-Paper-3 Economics Recently, the Government of India has called for bids to roll-out the ‘One Sun One World One Grid’ (OSOWOG) plan. The plan focuses on a framework for facilitating global cooperation, building a global ecosystem of interconnected renewable energy resources (mainly solar energy) that can be seamlessly shared. ImpPoints The vision behind the OSOWOG is ‘The Sun Never Sets’ and is a constant at some geographical location, globally, at any given point of time. This is by far one of the most ambitious schemes undertaken by any country and is of global significance in terms of sharing economic benefits. It has been taken up under the technical…
29 June, 2020
Government policies and interventions
FICCI prepares an action plan for the industry Amid the ongoing border tensions with China, FICCI has prepared a five-point "PEACE" action plan and asked its members to look for alternate sources of supplies. Amid the ongoing border tensions with China and a call to boycott Chinese goods, the industry chamber FICCI has prepared a five-point "PEACE" action plan -- Productivity, Efficiency, Alternates, Competitiveness and Exports. Imp Points The industry body has asked its members to look for alternate sources of supplies and not remain dependent on a single nation. FICCI President Sangita Reddy said in a letter to members…
28 June, 2020
Economic reforms
Sustainable Alternative towards Affordable Transportation (SATAT) SATAT Scheme The Sustainable Alternative towards Affordable Transportation (SATAT) scheme on Compressed Bio Gas was launched in 2018. It envisages targeting the production of 15 MMT of CBG from 5000 plants by 2023. The Government of India has taken various enabling steps to ensure the success of the SATAT scheme. Oil Marketing Companies have offered long-term pricing on CBG to make projects bankable and have agreed to execute long-term agreements on CBG. Under the SATAT scheme, IOT Biogas Limited (Namakkal, Tamil Nadu) decided to divert part/full biogas production to Compressed Biogas (CBG) generation. The…
28 June, 2020
Oil Crisis
Minimum Support Price Paper- GS-3 Food security (PT-M-IV) The MSP is the rate at which the government buys grains from farmers. The reason behind the idea of MSP is to counter the price volatility of agricultural commodities due to the factors like variation in their supply, lack of market integration and information asymmetry. The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP) (PT). Factors taken into consideration for fixing MSP include: Demand and supply, Cost of production (A2 + FL method) Price trends in the market, both domestic and international, Inter-crop price parity,…
27 June, 2020
Food security, PDS, FCI, Buffer
Co-operative Banks under RBI Recently, the Central government approved an ordinance to bring all urban and multi-state co-operative banks under the direct supervision of the RBI (PT). The decision comes after several instances of fraud and serious financial irregularities, including the major scam at the Punjab and Maharashtra Co-operative (PMC) Bank in 2019. Till now, all the co-operative banks came under dual regulation of the RBI and the Registrar of Co-operative Societies. Previously, the RBI had no power to draw up an enforceable scheme for the reconstruction of a cooperative bank. However, from now onwards the urban and multi-state co-operative…
27 June, 2020
Banking
Animal Husbandry Infrastructure Development Fund Cabinet Committee on Economic Affairs has given its nod to set up an Rs.15,000 crore Animal Husbandry Infrastructure Development Fund. The fund had been proposed as part of the Aatmanirbhar Bharat. Eligible beneficiaries under the scheme include the following with a minimum 10% margin money contribution by them, Farmer producer organisations, MSMEs, Section 8 companies, Private companies and Individual entrepreneurs The balance of 90% would be the loan component to be made available by scheduled banks. The Centre will provide a 3% interest subvention to eligible beneficiaries, with a 2-year moratorium period for the principal loan…
27 June, 2020
Animal Husbandry
Government e-Marketplace (GeM) Country of Origin Flag The government made it mandatory for sellers on the GeM portal to clarify the country of origin of their goods when registering new products. What? Government e-Marketplace (GeM) is the Commerce Ministry’s online marketplace. It procures goods and services by various Ministries and government bodies. Products sold on the portal range from stationery used by government officials to medical products that are used on patients. In News The GeM portal will now have the ‘country of origin’ flag for their products. The portal already has a ‘Make in India’ filter. Therefore, the government offices can ascertain…
26 June, 2020
GeM
Kumbhar Sashaktikaran Yojana It is an initiative of the Khadi and Village Industries Commission (KVIC) for the empowerment of the potter community in the remotest of locations in the country. The program reaches out to the potters in - U.P., M.P., Maharashtra, J&K, Haryana, Rajasthan, West Bengal, Assam, Gujarat, Tamil Nadu, Odisha, Telangana and Bihar. It provides the following support - Training for advanced pottery products. Latest, new technology pottery equipment like the electric Chaak. Market linkages and visibility through KVIC exhibitions. KVIC It is a statutory body established by an Act of Parliament (Khadi and Village Industries Commission Act…
26 June, 2020
KVIC
SATYABHAMA Portal Union Ministry of Mines has launched a portal "SATYABHAMA (Science and Technology Yojana for Atmanirbhar Bharat in Mining Advancement)". Its aim is to promote research and development in the mining and minerals sector. It has been launched to increase the efficiency and effectiveness of the Science and Technology Programme Scheme. Under the Science and Technology Programme Scheme, the Ministry of Mines promotes research in applied geosciences, mineral exploration, mining and allied areas, mineral processing, optimum utilization and conservation of the mineral resources of the country. The portal has been designed, developed and implemented by the National Informatics Centre (NIC). The…
25 June, 2020
Government policies and interventions
PM SVANidhi PM SVANidhi was launched by the Ministry of Housing and Urban Affairs, on June 01, 2020. Its objective is to provide affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to the Covid-19 lockdown. Under the Scheme, the vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments over the tenure of one year. On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer…
26 June, 2020
Government policies and interventions
China’s Tariff Exemption to Bangladesh Recently, China has announced tariff exemption for 97% of exports from Bangladesh. Bangladesh had requested China to exempt its export items from tariffs in the background of the economic hardship triggered by the Covid-19 pandemic. China considered Bangladesh's request and has granted the tariff exemption to Bangladesh on account of its Least Developed Countries (LDCs) status. The move will help Bangladesh to remove the economic impact of the pandemic and also emerge as a possible beneficiary alongside Vietnam and Chile of the U.S.-China trade war. The supply chain disruption caused by the U.S.-China trade war…
25 June, 2020
Free trade agreement
Krishi Vigyan Kendras It is an integral part of the National Agricultural Research System (NARS). It consists of scientists, technical staff, administrative support staff and auxiliary staff. The first KVK was established in 1974 at Puducherry. KVKs also produce quality technological products (seed, planting material, bio-agents, and livestock) and make it available to farmers. The KVK scheme is 100% financed by the Government of India.
25 June, 2020
Agriculture
KVIC launches Sandalwood and Bamboo plantation, a new initiative to spur monetization of its assets The Khadi and Village Industries Commission (KVIC), in a first-of-its-kind initiative has begun exploring the untapped but highly profitable venture of sandalwood and bamboo tree plantation for monetization of its assets. Seeking to encourage commercial plantation of sandalwood and bamboo, the KVIC has begun a drive with the plantation of 500 saplings each of sandalwood and bamboo at its Nashik training centre spread over 262 acres of land. KVIC has procured sandalwood saplings from Fragrance and Flavour Development Centre (FFDC) Kannauj, a unit of the…
26 June, 2020
Agriculture
Atma Nirbhar Uttar Pradesh Rojgar Abhiyan The COVID-19 pandemic has had an adverse impact on the workforce in general and migrant workers in particular. A large number of migrant workers returned to several states. The challenge of containing Covid-19 was compounded by the need to provide basic amenities and means of livelihood to migrants and rural workers. In order to generate employment with a thrust toward creating infrastructure in backward regions of the country, Garib Kalyan Rojgar Abhiyan was launched on 20th June 2020. In Uttar Pradesh, nearly 30 lakh migrant workers returned. 31 districts of Uttar Pradesh have more than…
26 June, 2020
Labour
YUKTI 2.0 About YUKTI 1.0 Union Minister for HRD Shri Ramesh Pokhriyal “Nishank” has launched a web-portal YUKTI (Young India Combating COVID with Knowledge, Technology and Innovation) . It’s a unique portal and dashboard to monitor and record the efforts and initiatives of MHRD. The portal intends to cover the different dimensions of COVID-19 challenges in a very holistic and comprehensive way. In the wake of COVID-19 threat, our primary aim is to keep our academic community healthy, both physically & mentally and to enable a continuous high-quality learning environment for learners. The portal is an effort of HRD Ministry…
24 June, 2020
Education
Information about the Country of Origin by the sellers made mandatory on GeM to promote Make in India and Aatmanirbhar Bharat Government e-Marketplace (GeM), a Special Purpose Vehicle under the Ministry of Commerce and Industry, has made it mandatory for sellers to enter the Country of Origin while registering all new products on GeM. Further, sellers, who had already uploaded their products before the introduction of this new feature on GeM, are being reminded regularly to update the Country of Origin, with a warning that their products shall be removed from GeM if they fail to update the same. GeM…
24 June, 2020
MSME
Government declares Minimum Support Price for Mature Dehusked Coconut The government of India has declared Minimum Support Price for mature dehusked coconut for the season 2020 at Rs. 2700/- per quintal, thus hiking the MSP by 5.02% from Rs. 2571/- per quintal during the season 2019. Homogeneous Development This decision has given utmost importance to the interests of farmers growing all kinds of crops throughout the country. The hike in the MSP for mature dehusked coconut facilitates procurement of fresh coconut thereby ensuring that the benefit of MSP reaches the millions of smallholder coconut farmers. Shri Tomar said that coconut…
24 June, 2020
Agriculture
National Institute of Public Finance and Policy (NIPFP) The National Institute of Public Finance and Policy (NIPFP) is a centre for research in public economics and policies. It is India’s premier economic think thank. It is presently headed by Urjit Patel. Founded in 1976, the institute undertakes research, policy advocacy and capacity building in areas related to public economics. One of the major mandates of the institute is to assist the Central, State and Local governments in formulating and reforming public policies by providing an analytical base. The institute was set up as an autonomous society, at the joint initiative…
20 June, 2020
Fiscal Policy
RBI Norms for NBFCs A housing finance company is considered a non-banking financial company (NBFC) under the RBI’s regulations. A company is treated as an NBFC if its financial assets are more than 50% of its total assets and income from financial assets is more than 50% of the gross income. RBI has proposed stringent norms for housing finance companies by mandating 75% of their home loans to individual borrowers by 2024. Recently, RBI has proposed the definition of qualifying assets for housing finance companies (HFCs). It defined ‘qualifying assets’ as loans to individuals or a group of individuals, including co-operative societies,…
19 June, 2020
NBFC
SEBI’s Measure to Increase Market Liquidity In April, SEBI relaxed certain regulatory requirements related to rights issues and initial public offerings (IPOs) to help companies to raise funds during this pandemic. It allowed any listed entity with a market capitalization of at least Rs.100 crore could use the fast-track route for a rights issue. Earlier, the norm was 250 crore for such offerings. Further, any company that had been listed for 18 months was permitted to raise funds through a fast-track rights issue. Earlier it was 3 years. Also, the minimum subscription requirement to make an issue successful was lowered…
19 June, 2020
SEBI
RBI to tighten rules for home finance firms The Reserve Bank of India (RBI) has proposed stringent norms for housing finance companies by mandating 75% of their home loans to individual borrowers by 2024. Housing finance company A housing finance company is considered a non-banking financial company (NBFC) under the RBI’s regulations. A company is treated as an NBFC if its financial assets are more than 50% of its total assets and income from financial assets is more than 50% of the gross income. The RBI proposed the definition of qualifying assets for housing finance companies (HFCs). It said…
18 June, 2020
RBI
SEBI eases fund-raising norms for firms As part of its attempts to make it easier for listed companies to raise funds in the current volatile scenario, the Securities and Exchange Board of India (SEBI) has allowed listed companies to raise funds at shorter intervals while also giving promoters the go-ahead to increase their stakes by a higher quantum without triggering an open offer. As per a gazette notification, the capital markets regulator has allowed companies to make two qualified institutional placements (QIPs) with a gap of just two weeks between them. This is a significant move as the earlier regulations…
18 June, 2020
SEBI
Strategic Petroleum Reserves Abu Dhabi National Oil Company (ADNOC) will send ships carrying crude oil to fill half of the 1.5 million tonne strategic oil reserves India has built at Mangaluru. Indian Strategic Petroleum Reserves Ltd has built 5.33 million tonnes of strategic crude oil storage at three locations — Padur (Kerala) and Mangaluru on the western coast and Visakhapatnam on the eastern coast The oil stored in the underground rock caverns at the three locations is to be used in an emergency.
18 June, 2020
Oil diplomacy
Mobile Payments Market Report S&P Global Market Intelligence has launched the 2020 India Mobile Payments Market Report. According to the report, mobile payments and card transactions exceeded cash withdrawals from automated teller machines (ATMs) for the first time in 2019, indicating that the country’s push toward digital payments was bearing fruit. The highlights of the report are as follows Mobile payments, initiated by payment apps comprising account-to-account transfers and payments made from stored-value accounts, rose 163% to $287 billion in 2019. By comparison, point-of-sale transactions completed using debit and credit cards, including online and in apps, rose 24% to $204…
18 June, 2020
Banking
Committee to oversee Ownership of Private Banks Reserve Bank of India (RBI) has constituted an internal working group to review the existing guidelines on ownership and corporate structure of private sector banks. The group will be headed by RBI executive director P.K. Mohanty. The bank licensing rules mandated that a private bank’s promoter will need to pare holding to 40% within three years, 20% in 10 years and to 15% in 15 years. The rules on promoter holding have changed over the years. It is, therefore, felt necessary to comprehensively review the extant guidelines on ownership, governance and corporate structure…
18 June, 2020
Banking
Panel on Cryptocurrency The panel on cryptocurrency, headed by Economic Affairs Secretary Subhash Garg, is expected to submit its report. The panel was set up in 2017 to study the impact of cryptocurrencies and come up with recommendations to regulate them. In his budget speech Finance minister said that cryptocurrencies are not legal tender. However, the Centre will explore the uses of blockchain technology, the encrypted data structure on which cryptocurrencies are built.
17 June, 2020
Banking
Standing Deposit Facility Scheme RBI uses an array of instruments such as Cash Reserve Ratio, Open Market Operation, and Market Stabilisation Scheme to absorb excess liquidity in the economy. These measures are considered as Liquidity Adjustment Facility (LAF) to bring the liquidity gap under control. However, these tools were not proven to be useful when the money market liquidity is in excess to deal with. Eg. Post demonetization scenario. During post demonetization, RBI ran out of government securities to offer as collateral and had to temporarily hike its CRR. Now, there is a proposal to introduce Standing Deposit Facility Scheme…
17 June, 2020
Banking
Changing the definition of MSME The government is changing the criteria to define micro, small and medium enterprises (MSMEs), to make these in sync with the goods and services tax (GST) regime. The earlier classification was based on the investment in plant and machinery in the case of goods companies and in equipment in the case of service companies. The new classification is based on annual turnover. Enterprises Old Definition (In Million Rs.) New Definition (In million Rs.) Goods Companies Services Firm MICRO 2.5 1 50 SMALL 25-50 1-20 50-750 MEDIUM 50-100 20-50 750-2500 The change would be effective…
17 June, 2020
MSME
National Productivity Day The National Productivity Council is observed 12th of February as National Productivity Day and till the 18th of February as National Productivity Week. "Industry 4.0 Leapfrog Opportunity for India” is the theme of the National Productivity Week -2018. Industry 4.0 is characterized by the increasing digitization and interconnection of products, value chains and business models. National Productivity Council (NPC) NPC is a mission-oriented apex, autonomous and not-for-profit organization. It is established by the Ministry of Industry, Govt. of India in 1958. Its objective is to promote the cause of productivity in all sectors of the Indian economy. NPC is…
17 June, 2020
Industry
Federation of Indian Chambers of Commerce and Industry (FICCI) Context With a view to achieving atmanirbharata in the Coal sector, the Ministry of Coal in association with FICCI is launching the process for auction of 41 coal mines under the provisions of the CM (SP) Act and MMDR Act. This auction process marks the beginning of the opening of the Indian coal sector for commercial mining. It will enable the country to achieve self-sufficiency in meeting its energy needs and boost industrial development. The commencement of this auction process of coal mines for the sale of coal is part of…
18 June, 2020
Industry
INDIA’S FOREIGN TRADE: May 2020 Part of: GS-III- Economic Data (PT-MAINS-PERSONALITY TEST) India’s overall exports (Merchandise and Services combined) in April-May2020-21* are estimated to be USD 61.57billion, exhibiting a negative growth of (-) 33.66 per cent over the same period last year. Overall imports in April-May 2020-21* are estimated to be USD 57.19 billion, exhibiting a negative growth of (-) 48.31per cent over the same period last year. The data for May 2020 is estimation, which will be revised based on RBI’s subsequent release MERCHANDISE TRADE EXPORTS (including re-exports) Exports inMay2020 were USD19.05billion, as compared to USD29.99billion in May 2019,…
16 June, 2020
Foreign trade data
Railway development Authority Rail Development Authority will help the Indian Railways take decisions on pricing of services, consumer interests, generating revenue and competition. The government has approved the formation of a Rail Development Authority (RDA) comprising a Chairman and three Members. The objective underlying RDA is to get expert advice/make an informed decision on Pricing of services commensurate with costs. Suggest measures for enhancement of Non-Fare Revenue. Protection of consumer interests, by ensuring the quality of service and cost optimization. Promoting competition, efficiency and economy. Other than the above-mentioned objectives the authority also deals with resource allocation, setting service benchmarks…
16 June, 2020
Infrastructure
MLCR The Marginal Cost of Funds-based Lending Rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend. The MCLR was introduced in April 2016, replacing the existing base rate system. Reserve Bank of India will link the base rate with the Marginal Cost of Funds based on Lending Rates (MCLR). RBI decided to shift from base rate to MCLR because the rates based on marginal cost of funds are more sensitive to changes in the policy rates.
16 June, 2020
Banking
National Agroforestry Policy,2014 Context A webinar was organized on 13th June 2020 to discuss ways and means to connect agroforestry farmers to industry and sensitise implementing States to assist farmers in making the correct choice of species. What is agroforestry? Agroforestry is defined as a land use system which integrate trees and shrubs on farmlands and rural landscapes to enhance productivity, profitability, diversity and ecosystem sustainability. It is a dynamic, ecologically based, natural resource management system that, through integration of woody perennials on farms and in the agricultural landscape, diversifies and sustains production and builds social institutions. Various Policies Major…
16 June, 2020
Agriculture
Malathion insecticide HIL (India) Limited, a PSU under the Ministry of Chemicals and Fertilizers and one of the leading manufacturers of insecticides in the country has supplied 25MT Malathion 95% ULV to Iran under the Government-to-Government initiative for Locust Control Programme. As per the reports of the Food and Agriculture Organisation (FAO), the hopper stage population of locust is building up in Sistan-Baluchistan Region of Iran, which shall migrate to India in the coming months leading to further crop devastation. The government of India has taken an initiative to counter the locust menace at its breeding ground itself and approached Iran…
16 June, 2020
Agriculture
INDIA’S FOREIGN TRADE India’s overall exports (Merchandise and Services combined) in April-May2020-21* are estimated to be USD 61.57billion, exhibiting a negative growth of (-) 33.66 per cent over the same period last year. Overall imports in April-May 2020-21* are estimated to be USD 57.19 billion, exhibiting a negative growth of (-) 48.31per cent over the same period last year. MERCHANDISE TRADE EXPORTS (including re-exports) Exports inMay2020 were USD19.05billion, as compared to USD29.99billion in May 2019, exhibiting a negative growth of (-)36.47per cent. In Rupee terms, exports were Rs. 1,44,166.01crore in May2020, as compared to Rs. 2,09,280.62crore in May2019, registering a…
16 June, 2020
Economic Data
Index Numbers of Wholesale Price in India for the month of May 2020 The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing index numbers of wholesale prices in India for the month of May 2020 (Provisional) and for the month of March 2020 (Final). Provisional figures of the Wholesale Price Index (WPI) are released on the 14th of every month (or the next working day) with a time lag of two weeks of the reference month. Wholesale Price Index for 'All Commodities' (Base: 2011-12=100) for the month of May 2020 declined by (-2.24%) to 117.7…
16 June, 2020
Terminology
Indian Gas Exchange (IGX) Context Minister of Petroleum and Natural Gas & Steel Shri Dharmendra Pradhan launched the Indian Gas Exchange (IGX), the first nationwide online delivery-based gas trading platform, in an e-ceremony today. About Indian Gas Exchange (IGX) IGX will be a delivery-based trading platform for the delivery of natural Gas. Incorporated as a wholly owned subsidiary of IEX - India’s energy market platform, IGX will enable market participants to trade in standardised gas contracts. The platform is fully automated with a web-based interface to provide a seamless trading experience to the customers. As there will be a market-driven pricing mechanism,…
16 June, 2020
Stock market
E-Office Central Board of Indirect Taxes and Customs (CBIC) launched the e-Office application in over 500 CGST and Customs offices across India here today. Over 50,000 officers and staff will use this application making CBIC one of the largest Government departments to automate its internal office procedures. The launch of e-Office marks a fundamental change in internal office procedures which is so far based on manual handling of files and paper movement. The CBIC expects e-Office would complement its many other IT led reforms which are directly aimed at enhancing the ease of doing business for the trade and industry.…
16 June, 2020
Tax
Digital Gender Atlas Digital Gender Atlas has been developed to identify the low-performing geographic pockets for girls, on specific gender-related education indicators. The Pockets are particularly from marginalized groups such as scheduled castes, scheduled tribes and Muslim minorities. The Atlas is placed on the MHRD website and is available and ready to use by States/Districts/Blocks education administrators. The Atlas is designed around the two broad areas of performance of girls' education and vulnerabilities visualized in the following five sections, Composite gender ranking Special Focus Districts Trend Analysis of Gender Indicators Children with Disabilities Vulnerabilities based on educational indicators
11 June, 2020
Education
World University Rankings 2021 Part of: GS-III- Education (PT-MAINS-PERSONALITY TEST) Recently, QS World University Rankings 2021 shows a decline in the rankings of the Indian Institutes of Technology (IITs) and the Indian Institute of Science (IISc). Only the newer IITs in Guwahati and Hyderabad have shown some improvement. QS World University Rankings Quacquarelli Symonds (QS) is a leading global career and education network for ambitious professionals looking to further their personal and professional development. QS develops and successfully implements methods of comparative data collection and analysis used to highlight institutions’ strengths. The “QS World University Rankings”is an annual publication of university rankings which comprises the global overall and subject rankings. Six parameters and their weightage for the…
Gross Value Added GS-Paper-III Economics In 2015, India opted to make major changes to its compilation of national accounts and decided to bring the whole process into conformity with the United Nations System of National Accounts (SNA) of 2008. The SNA is the internationally agreed standard set of recommendations on how to compile measures of economic activity. It describes a coherent, consistent and integrated set of macroeconomic accounts in the context of a set of internationally agreed concepts, definitions, classifications and accounting rules. As per the SNA, GVA is defined as the value of output minus the value of intermediate consumption and is…
10 June, 2020
GDP/GNP
FSSAI for Nutritional and Safe Food Food Safety and Standards Authority of India (FSSAI) has developed science-based standards for various categories of food products to ensure the availability of safe and wholesome food in the country. FSSAI has introduced +F Logo for fortified foods. To promote awareness among consumers on Nutrition, mandatory labelling requirements for pre-packaged foods are prescribed. FSSAI has also undertaken the ‘Safe and Nutritious Food (SNF)’ initiative to promote awareness of the consumption of safe and nutritious food.
08 June, 2020
FSSAI
CriSidEx India’s first sentiment index for micro and small enterprises ( MSEs) was developed jointly by CRISIL & SIDBI here today. CriSidEx is a composite index measuring MSE business sentiment. Its readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies.
08 June, 2020
Economic Data
Zero budget natural farming project To promote organic farming Himachal Pradesh has launched the Zero Budget Natural Farming project. Zero-budget farming is a natural farming technique that uses biological pesticides instead of chemical-based fertilizers. In this method, the cost of growing and harvesting plants is zero, which makes it highly beneficial for farmers.
06 June, 2020
Agriculture
Periodic Labour Force Survey (PLFS) – Annual Report [July 2018 – June 2019] Introduction Considering the importance of the availability of labour force data at more frequent time intervals, National Statistical Office (NSO) launched the Periodic Labour Force Survey (PLFS) in April 2017. Objective of PLFS The objective of PLFS is primarily twofold: to estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS) to estimate employment and unemployment indicators in both usual statuses (ps+ss)…
05 June, 2020
Labour
The Urban Learning Internship Program (TULIP) Ministry of Human Resource Development, Ministry of Housing & Urban Affairs, and All India Council for Technical Education (AICTE) have jointly launched an online portal for `The Urban Learning Internship Program (TULIP)’ - A program for providing internship opportunities to fresh graduates in all Urban Local Bodies (ULBs) and Smart Cities across the country. About The Urban Learning Internship Program (TULIP) TULIP is a program for providing fresh graduates with experiential learning opportunities in the urban sector. TULIP has been conceived pursuant to the Budget 2020-21 announcement by Finance Minister Smt. Nirmala Sitharaman under…
05 June, 2020
Labour
Limited Liability Partnership About: What is it? LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. Hence LLP is called a hybrid between a company and a partnership. Legislation in India All limited liability partnership is governed under the limited liability partnership act of 2008. The Corporate Affairs Ministry implements the Act. LLP vs Traditional partnership firm: Under a “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a…
05 June, 2020
Industry
IEM (Industrial Entrepreneur Memorandum) Context Applications for IEM/IL under the I(D&R) Act, 1951 are currently accepted through the IEM portal at https://services.dipp.gov.in. Through this portal, applications for acknowledgement of IEM – Part A (for the establishment of business) and IEM – Part B (upon commencement of commercial production) are filed online by entrepreneurs of prescribed industrial undertakings. (1) What is an IEM (Industrial Entrepreneur Memorandum)? Industrial undertakings exempted from the requirements of Industrial Licensing under I (D&R) Act, 1951 are required to file information relating to the setting up of industries known as IEM (Industrial Entrepreneur Memorandum). This is filed…
05 June, 2020
Industry
SWADES (Skilled Workers Arrival Database for Employment Support) With the aim of making the best of our skilled workforce returning to the country due to the ongoing pandemic, the Government of India has launched a new initiative SWADES (Skilled Workers Arrival Database for Employment Support) to conduct a skill mapping exercise for the returning citizens under the Vande Bharat Mission. This is a joint initiative of the Ministry of Skill Development & Entrepreneurship, the Ministry of Civil Aviation and the Ministry of External Affairs which aims to create a database of qualified citizens based on their skillsets and experience to…
04 June, 2020
Labour
Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) for attracting investment in India Context The Union Cabinet under the leadership of Hon’ble Prime Minister Shri Narendra Modi has given its approval for setting up of an “Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) in Ministries/Departments of Government of India for attracting investments in India”. This new mechanism will reinforce India’s vision of becoming a US$ 5 trillion economy by 2024-25. DPIIT proposes the strategic implementation of an integrated approach that will eventually bring about synergies between Ministries/Departments and among the Central and State Governments in our…
04 June, 2020
Investment
Amendment to Essential Commodities Act Historic Amendment to Essential Commodities Act The Cabinet today approved a historic amendment to the Essential Commodities Act. This is a visionary step towards the transformation of agriculture and raising farmers’ income. Background While India has become surplus in most agri-commodities, farmers have been unable to get better prices due to a lack of investment in cold storage, warehouses, processing and export as the entrepreneurial spirit gets dampened due to the hanging sword of the Essential Commodities Act. Farmers suffer huge losses when there are bumper harvests, especially of perishable commodities. With adequate processing facilities, much…
04 June, 2020
Agriculture
Why Moody’s downgraded India’s rating, what the implications may be ? On Monday, Moody’s Investors Service (“Moody’s”) downgraded the Government of India’s foreign-currency and local-currency long-term issuer ratings to “Baa3” from “Baa2”. It stated that the outlook remained “negative”. The latest downgrade reduces India to the lowest investment grade of ratings and brings Moody’s — which is historically the most optimistic about India — ratings for the country in line with the other two main rating agencies in the world — Standard & Poor’s (S&P) and Fitch What is the reason for this downgrade? There are four main reasons why…
Social stock exchange (SSE) A working group constituted by the Securities and Exchange Board of India (SEBI) on social stock exchanges has recommended allowing non-profit organisations to directly list on such platforms while allowing certain tax incentives to encourage participation on the platform. The idea of a social stock exchange (SSE) for a listing of social enterprises and voluntary organisations was mooted by Finance Minister Nirmala Sitharaman while presenting the Union Budget 2019-20. According to a release issued by the capital markets regulator, the group has recommended allowing non-profit organisations to directly list through the issuance of bonds while recommending…
02 June, 2020
SEBI
Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi Scheme The Ministry of Housing and Urban Affairs launched a micro-credit scheme for street vendors, which was announced by Finance Minister Nirmala Sitharaman on May 14 as a part of the economic package for those affected by the COVID-19 pandemic and lockdown. The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi Scheme is aimed at benefiting over 50 lakh vendors who had their businesses operational on or before March 24. The scheme is valid till March 2022. The vendors will be able to apply for a working capital loan of up to ? 10,000, which is…
02 June, 2020
Banking
CHAMPIONS portal Prime Minister Shri Narendra Modi today launched the technology platform CHAMPIONS which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding. It is a real one-stop-shop solution for the MSME Ministry. This ICT-based system is set up to help the MSMEs in the present difficult situations and also to handhold them to become national and international champions. Detailed objectives of CHAMPIONS: Grievance Redressal: To resolve the problems of…
02 June, 2020
MSME
Chardham Pariyojana: Chamba Tunnel Part of: GS-III- Infrastructure (PT-MAINS-PERSONALITY TEST) Recently, the Union Minister for Road Transport & Highways inaugurated the Chamba Tunnel which has completed under Chardham Pariyojana through video conference mode. About Chamba tunnel: The Chamba tunnel is a horse-shoe type tunnel with 10 m carriageway width and 5.5 m vertical clearance. It is 440 m long Tunnel below the busy Chamba town on Rishikesh-Dharasu road Highway (NH 94). BRO (Border Road Organisation) is a key stakeholder in this project and the work of Chamba tunnel has been completed by Team Shivalik with use of the latest Austrian technology. This tunnel project will be completed for traffic in October 2020, ie, three…
01 June, 2020
Infrastructure
Project Sunrise Project Sunrise was launched in 2015, by the union government to tackle the increasing HIV prevalence in the North-Eastern states. It aims to provide treatment and care facilities free of cost for people living with HIV/AIDS and create more awareness about the disease in these N-E states. The project is a five-year programme (2015-2020) aimed at complementing the ongoing National AIDS Control Programme (NACP). The project has been sponsored by the US-based Centre for Disease Control.
01 June, 2020
Northeast development
Prompt Corrective Action (PCA) Union Finance Ministry as a part of the reforming process about to initiate a performance review for public sector banks. These reforms will be under the RBI’s Prompt Corrective Action (PCA). The PCA is invoked when certain risk thresholds are breached, there are three risk thresholds which are based on Asset quality. Profitability. Capital and the like. The third threshold is the maximum tolerance limit, which has set NPA at over 12% and a negative return on assets for four consecutive years. Under PCA there are two types of sanctions restrictions on dividends, branch expansion and…
31 May, 2020
Banking
National Institutional Ranking Framework The National Institutional Ranking Framework (NIRF) was approved by the MHRD and launched in 2015. This framework outlines a methodology to rank institutions across the country. The methodology involves various parameters for ranking universities and institutions such as Teaching, Learning and Resources. Research and Professional Practices. Graduation Outcomes. Outreach and Inclusivity. Perception.
31 May, 2020
Education
Banks Board Bureau Part of: GS-III- Bank (PT-MAINS-PERSONALITY TEST) The Banks Board Bureau (BBB) has selected SN Rajeswari as the Chairman and Managing Director (CMD) of the Delhi-based Oriental Insurance Company (OIC). The Ministry of Finance will now start the process of appointing Rajeswari as the CMD of OIC. This will be followed by the Finance Ministry's nod and a further approval from the Appointments Committee of the Cabinet and the Prime Minister’s Office. Background: The Banks Board Bureau (BBB) has its genesis in the recommendations of ‘The Committee to Review Governance of Boards of Banks in India, May 2014 (Chairman - P. J. Nayak) Formation: The…
30 May, 2020
Banking
First investment for NIIF Recently a Dubai-based marine firm DP World has partnered with NIIF to create an investment platform for ports, terminals, transportation and logistics businesses in India. National Investment and Infrastructure Fund (NIIF) is set up to function as a major platform in India for attracting foreign investments to fund stalled infra projects. The NIIF is being operationalized by establishing three Alternative Investment Funds (AIFs) under the SEBI Regulations. The proposed corpus of NIIF is Rs. 40,000 Crores (around USD 6 Billion). GOI’s contribution to the AIFs under the NIIF scheme shall be 49% of the total commitment.…
30 May, 2020
Infrastructure
What RBI discontinuing 7.75% saving bonds means to investors Introduction After the cut in deposit rates by the banks and a cut in small savings rate by the government over the last couple of months, the Reserve Bank of India on Wednesday said the Government of India has discontinued 7.75 per cent savings (taxable) bonds, 2018 for subscription with effect from the close of banking business on Thursday. The move will deprive investors of another saving instrument that yielded relatively higher post tax returns for investors. What are 7.75 per cent RBI bonds? The 7.75 bonds 2018 were issued with…
30 May, 2020
RBI
Credit scores A credit score determines how creditworthy a person is and helps banks and financial institutions decide on loans. In India, the scores are issued by credit reporting agencies such as CIBIL, Equifax, Experian, Etc. These agencies are regulated by the RBI and collect data from banks on their loans and come up with credit scores through use of algorithms. The data is updated frequently. Credit scores in India range from 300-900. A credit report may be obtained for free once a year from every credit reporting agency.
29 May, 2020
Banking
Operation Digital Board The Central Advisory Board of Education (CABE) recently passed a resolution to take steps toward Operation Digital Board. The idea of Operation Digital Board is aimed at providing better digital education in all schools. These steps will be on the lines of Operation Blackboard of 1987, which was started with the purpose of providing minimum basic facilities to all primary schools. This will offer new opportunities and ways of teaching and learning in schools. CABE is an advisory body under the Ministry of Human Resource Development.
28 May, 2020
Education
National Logistics Plan Recently Union government has introduced an ambitious national logistics plan to allow seamless movement of inputs and finished goods across the country. This government aims to come out with the most cost-effective method to transport goods by 2035 to provide a competitive edge to the Indian industry. The logistics division in the commerce department is in talks with logistics providing ministries of railways, roadways, shipping, inland waterways and civil aviation besides the logistics using ministries including food processing, coal and mines to chalk out the plan. The logistics division has created a National Logistics Information Portal, which…
28 May, 2020
Infrastructure
Oil price pickle PAPER- GS-III OIL CRISIS The increased duty on fuel can fund welfare, but arbitrary methods will have implications Union Petroleum Minister that the Centre is taking a ‘cautious and conscious approach’ of ensuring a balance in fuel prices and aims to use the resultant savings for welfare is on the face of it unexceptionable. With global oil prices still about 45% lower than 2019 closing levels despite coordinated supply cuts by major producers, India had an opportunity to pass on the benefit to consumers and provide a fillip to becalmed consumption. Imp Points That the ‘deregulated’ oil marketing…
27 May, 2020
Oil Crisis
LEADS Index Logistics Ease Across Different States (LEADS) index is a composite indicator to assess international trade logistics across states and Union territories. It is based on a stakeholders’ survey conducted by Deloitte for the Ministry of commerce and industry. Gujarat topped the first-of-its-kind index, and Punjab and Andhra Pradesh took the second and third positions, respectively. The index is loosely based on the World Bank’s biannual Logistics Performance Index (LPI). India was ranked 35 among 160 countries in LPI in 2016, up from 54 in 2014. LEADS is based on eight parameters such as infrastructure, services, timeliness, track and trace,…
27 May, 2020
Economic Data
FDI in single-brand retail The Union government has decided to allow 100 per cent Foreign Direct Investment (FDI) in single-brand retail trading through the automatic route. The single-brand retail chain is expected to sell all its products under only one label across its store, for example Burger King, KFC, Levis. If an MNC operates a single-brand retail chain, the product must also be sold under the same brand name globally. The MNC must also source 30 per cent of its purchases for the business from India. Now these rules are slightly relaxed to allow an MNC to set off any…
Give loans to eligible borrowers without fear of CBI, CVC and CAG Part of: GS-III- financial assistance (PT-MAINS-PERSONALITY TEST) Banks should not be scared to extend loans as a 100% guarantee is being given by govt, Nirmala Sitharaman told CEOs and MDs of public sector banks. Finance Minister said banks have been asked to extend loans automatically to eligible borrowers without fear of 3Cs -- CBI, CVC and CAG. Important Points She said clear instructions have been given in a meeting with CEOs and MDs of public sector banks and financial institutions that the banks should not be scared to…
24 May, 2020
Banking
Mizoram grants ‘industry’ status to sports The northeastern state of Mizoram has accorded ‘industry’ status to sports. The Cabinet cleared the Sports and Youth Service department’s proposal to recognise sports as an ‘industry’ in the state. The idea was first proposed in 2019 as part of the state sports policy by the ruling Mizo National Front government. According to him, the main aim of the decision is to professionalise sports in the state. “We need to sustain sports and games and make it more meaningful to players. Gone are the days where sports is just entertainment and enjoyment — it…
24 May, 2020
Northeast development
RBI announces nine additional measures for strengthening the Economy Essay lines:"It is when the horizon is the darkest and human reason is beaten down to the ground that faith shines brightest and comes to our rescue." RBI Governor Shaktikanta Das drew hope and inspiration from the 1929 statement of the Father of the Nation, as he announced yet another set of nine measures to smoothen the flow of finance and preserve financial stability in the turbulent and uncertain times ushered in by the COVID-19 pandemic The RBI Governor stated that we must have faith in India’s resilience and capacity to…
23 May, 2020
Banking
RBI slashes the lending rates Part of: GS-III- RBI-INFLATION (PT-MAINS-PERSONALITY TEST) The RBI Governor Shaktikanta Das said that the six-member Monetary Policy Committee voted 5:1 in favour of 40 bps cut in interest rate. The RBI Governor said, measures announced can be divided into four categories-to improve functioning of markets, to support exports and imports, to ease financial stress by giving relief on debt servicing and better access to working capital and to ease financial constraints faced by State Governments. Important Points Speaking about impact of COVID-19, RBI GOVERNOR said , the GDP growth in 2020-21 goes in negative territory.…
23 May, 2020
RBI
“Sweet Revolution” as a part of Atmanirbhar Bharat Abhiyan The government is promoting Beekeeping as part of its aim to double farmers’ income. The Government has allocated Rs.500 crore towards Beekeeping under the Atma Nirbhar Abhiyan. India is among the world’s top five honey producers. Compared to 2005-06 honey production has risen by 242% and exports shot by 265%. Beekeeping will be an important factor in achieving the goal of doubling farmers’ income by 2024. National Bee Board has created four modules to impart training as part of the National Beekeeping and Honey Mission (NBHM) and 30 lakh farmers have…
23 May, 2020
Agriculture
Alternative dwarfing genes in wheat can eliminate rice crop residue burning In India, close to twenty-three million tonnes of leftover rice residues are annually burnt by farmers to get rid of the straw and prepare their fields for sowing wheat, which is the next crop, resulting in air pollution. Also, dry environments pose a challenge for the germination of wheat varieties with short coleoptiles. To overcome these problems, Scientists at Pune-based Agharkar Research Institute (ARI), an autonomous institute of the Department of Science and Technology, have mapped two alternative dwarfing genes Rht14 and Rht18 in wheat. These genes are associated…
22 May, 2020
Agriculture
The Negotiable Instruments (Amendment) Bill, 2017 It seeks to amend the Negotiable Instruments Act, of 1881. A negotiable instrument is a document that promises payment to a specified person. E.g Cheque The Act defines promissory notes, bills of exchange, and cheques. It also specifies penalties for bouncing of cheques and other violations with respect to such negotiable instruments.
21 May, 2020
Banking
Swayam Prabha The Swayam Prabha is a group of 32 DTH channels devoted to telecasting of high-quality educational programmes on a 24X7 basis using the GSAT-15 satellite. The channels cover higher education, and school education and assist the students (class 11th & 12th) prepare for competitive exams. The contents are provided by IITs, UGC, IGNOU, NCERT and NIOS. Information and Library Network (INFLIBNET), an autonomous Inter-University Centre (IUC) of UGC maintains the web portal. INFLIBNET is involved in creating infrastructure for sharing of library and information resources and services among Academic and Research Institutions. It allows students to choose the…
20 May, 2020
Education
NABARD The Parliament has recently passed the National Bank for Agriculture and Rural Development (Amendment) Bill, 2017. The Bill seeks to amend the NABARD Act, 1981 which establishes NABARD by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). The amendment bill seeks to increase the authorised capital of the Bank to 30,000 crore rupees from 5,000 crore rupees. Currently the Central government is holding 99.60% share of the bank and the rest is with RBI (0.40%). The capital can be increased further by the government in consultation with the…
20 May, 2020
Banking
Public debt Article 292 of the Indian Constitution states that the Government of India can borrow amounts specified by the Parliament from time to time. Article 293 of the Indian Constitution mandates that the State Governments in India can borrow only from internal sources. Thus the Government of India incurs both external and internal debt, while State Governments incur only internal debt under Article 293. As per the recommendations of the 12th Finance Commission, access to external financing by the States for various projects is facilitated by the Central Government, which provides the sovereign guarantee for these borrowings. From April…
19 May, 2020
Fiscal Policy
A matter of relief: On the economic stimulus package With the announcement of the final tranche of Atmanirbhar Bharat Abhiyan, the government tries to give a strong supply-side push by boosting the availability of capital on easy terms, keeping income and wage support schemes to the minimum, empowering constituencies ranging from farmers and workers to businesses, and finally, the most important, keep the damage to the fiscal as low as possible. The fiscal impact of the ?20-lakh crore package is estimated by economists at between 2-3% of GDP and that includes drawers from provisions already made in the Budget for…
19 May, 2020
Fiscal Policy
Sovereign gold bond (SGB)-FAQ What is a sovereign gold bond (SGB)? A sovereign gold bond is a substitute for holding physical gold. The bonds are issued by the Reserve Bank of India (RBI) on behalf of the government and are bonds denominated in gold. The government issues such bonds in tranches at a fixed price that investors can buy through banks, post offices and also in the secondary markets through the stock exchange platform. What are the benefits of buying SGB? These bonds are backed by a sovereign guarantee and can also be held in Demat form. Further, they are…
18 May, 2020
Money Market
Defence Testing Infrastructure Scheme Part of: GS-III- CULTURE (PT-MAINS-PERSONALITY TEST) Recently, the government has approved the launch of the ‘Defence Testing Infrastructure Scheme (DTIS)’ in order to give a boost to domestic defence and aerospace manufacturing. The Government has accorded high priority to the development of the manufacturing base of the Defence and Aerospace sectors in the country under the “Make in India” initiative to reduce dependence on imports. In the above context, the government has already announced the establishment of Defence Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu. But, still one of the main impediments for domestic defence production is the lack of easily…
18 May, 2020
Defense industry
5th tranche of Atma Nirbhar Bharat package- Structural Reforms Part of: GS-III- Economy- Economic reforms (PT-MAINS-PERSONALITY TEST) Finance Minister in her announcement of the fifth tranche of measures to address the economic situation in the country amid COVID-19, outlined structural reforms with focus on seven areas of MNREGA, Health and Education, Business during COVID, Decriminalisation of Company Act, Ease of doing business, Policy related to Public Sector Units, State government and resources related to it. Imp Announcements MNREGA: MGNREGA scheme, an additional Rs 40 thousand crore will be allocated for employment generation in the rural parts of the country. She…
18 May, 2020
Economic bailout plan
Coal, and mineral reforms to help reduce imports Part of: GS-III- CULTURE (PT-MAINS-PERSONALITY TEST) The coal sector will get a boost as private parties can now bid for 50 blocks: CARE Ratings Finance Minister's structural reform measures in the coal and mining sector are expected to give a boost to private investments in the sector and reduce India’s reliance on imports. Analysis “Our assessment is that if it is implemented at the earliest, these much needed reforms will double these sectors’ contribution to the GDP,” “The introduction of competition, transparency and private sector participation in the coal sector will automatically…
17 May, 2020
Coal policy
How will the COVID-19 relief for MSMEs help? Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Prime Minister Narendra Modi announced a ?20-lakh crore economic relief package titled Atmanirbhar Bharat Abhiyan. The relief package is being unveiled in tranches from May 13 by Finance Minister Nirmala Sitharaman. The first tranche, aimed at micro, small and medium enterprises (MSMEs), non-banking financial companies (NBFCs) and at some individuals was announced by her on Wednesday. What are the proposals aimed at offering relief to micro, small and medium enterprises (MSMEs)? The government has proposed to offer collateral-free loans to MSMEs which will be fully guaranteed by the…
17 May, 2020
MSME
Coronavirus package - Government throws open defence production Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) The fourth tranche of stimulus focuses on reforms across the industry, aviation and space. Steps to indigenous defence production by banning the import of some weapons and platforms while hiking foreign direct investment into the sector were among the highlights of the fourth tranche of the Aatmanirbhar Bharat Abhiyan package, which seemed to focus more on industry reforms than any sort of economic stimulus. Union Finance Minister also announced measures to introduce commercial mining in the coal sector, liberalise the mineral sector, ease airspace restrictions and encourage private…
17 May, 2020
Economic bailout plan
Model Contract Farming Act, 2018 With a view to integrating farmers with bulk purchasers including exporters, agro-industries etc. for better price realization through mitigation of market and price risks to the farmers and ensuring smooth agro raw material supply to the agro-industries, a “Model Contract Farming Act” has been prepared by the Ministry of Agriculture & Farmers Welfare for circulation to the States for its adoption. Farmer’s producer organizations (FPO’s) have a major role in promoting Contract Farming and Services Contract. On behalf of farmers they can enter into agreement with the sponsor. Salient features of Model Contract Farming Act,…
17 May, 2020
Agriculture
Agriculture Export Policy,2018 The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the Agriculture Export Policy, 2018. The Cabinet has also approved the proposal for the establishment of a Monitoring Framework at the Centre with Commerce as the nodal Department with representation from various line Ministries/Departments and Agencies and representatives of concerned State Governments, to oversee the implementation of Agriculture Export Policy. Vision:” Harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers’ income.” Objectives: The objectives of the Agriculture Export Policy are as under: To double agricultural…
16 May, 2020
Agriculture
Monetary, and regulatory support can help Agri industry account for 20% of exports by 2025 Introduction The monetary and regulatory support announced for the agricultural industry by the Finance Ministry on Friday has the potential to help double the share of this sector in the country’s basket of exports to around 20 per cent by 2025, according to some experts. The strengthening of post-production facilities like cold chains, storage infrastructure and farm-gate projects will not only address wastages but will also improve unit realisation of our agricultural products. India’s exports dropped over 60 percent in April due to supply chain…
16 May, 2020
Agriculture
Resident Indians remit record $18.75 bn in FY20 Resident Indians remit record $18.75 bn in FY20; travel, education LRS dominate Liberalised remittance scheme (LRS) Under the RBI’s liberalised remittance scheme, resident individuals are allowed to remit up to $250,000 in a financial year under various heads including current account transactions such as going overseas on employment, studies overseas, emigration, maintenance of close relatives, medical treatment among others. The residents can also transfer money for capital account transactions under LRS including opening of foreign currency account overseas with a bank, purchase of property and making investments in units of…
16 May, 2020
Remittances
The economic package announced by Finance Minister Part of: GS-III- Economy- Bailout plan (PT-MAINS-PERSONALITY TEST) This whole initiative is called Atmanirbhar Bharat Abhiyan. She said, PM Modi in his address to the nation had outlined his vision for a self-reliant India and exhorted the Indians to become vocal about our local products. The Finance Minister said this vision was laid out after wide consultations with several sections of society. She said the focus will be on the factors of production, labour, land, liquidity and law. She said it will improve the ease of doing business. The intention is to build and take local brands to a…
16 May, 2020
Economic bailout plan
Malnutrition Malnutrition refers to deficiencies, excesses or imbalances in a person’s intake of energy and/or nutrients. The term malnutrition covers two broad groups of conditions. One is ‘undernutrition’—which includes stunting (low height for age), wasting (low weight for height), underweight (low weight for age) and micronutrient deficiencies or insufficiencies (a lack of important vitamins and minerals). The other is overweight, obesity and diet-related noncommunicable diseases (such as heart disease, stroke, diabetes and cancer). In April 2016, the United Nations General Assembly adopted a resolution proclaiming the UN Decade of Action on Nutrition from 2016 to 2025. The Sustainable Development Goal (SD Goal 2: Zero hunger) aims…
14 May, 2020
Malnourishment
FORCE (‘Fiscal Options and Response to Covid-19 Epidemic’) A group of 50 IRS officers thought it their duty to help the government in this hour of crisis. They prepared a report titled ‘Fiscal Options and Response to Covid-19 Epidemic’, or FORCE, and submitted it to the government. In order to tide over the financial crisis, the report suggested : 1. Raising the highest slab rate to 40% for income above ?1 crore 2. Re-introducing the wealth tax for those with a wealth of? 5 crores or more 3. Providing an additional one-time cess of 4% on taxable income of? 10…
14 May, 2020
Fiscal Policy
Liquidity lifeline: On Nirmala’s MSME package Introduction The first tranche of announcements made by Finance Minister Nirmala Sitharaman under the Atmanirbhar Bharat Abhiyan on Wednesday is impressive indeed. Focus areas The measures announced will go a long way in lifting the spirits of the two key and troubled sectors of MSMEs and non-banking finance companies. While for the MSMEs it is an existential crisis, for the NBFCs it is one of liquidity. Fiscal package for MSMEs The massive ?3-lakh crore collateral-free assistance handed out to MSMEs will help them crank up their operations. The Government has extended a sovereign credit…
14 May, 2020
Fiscal Policy
GI tag for Jharkhand’s Sohrai Khovar painting, Telangana’s Telia Rumal Introduction Jharkhand’s Sohrai Khovar painting and Telangana’s Telia Rumal were given the Geographical Indication (GI) tag on Tuesday by the Geographical Indications Registry headquartered in Chennai. Sohrai Khovar “The Sohrai Khovar painting is a traditional and ritualistic mural art being practised by local tribal women during local harvest and marriage seasons using local, naturally available soils of different colours in the area of Hazaribagh district of Jharkhand. Traditionally painted on the walls of mud houses, they are now seen on other surfaces, too. The style features a profusion of lines,…
13 May, 2020
GI Tag
Self-reliant India is based on 5 pillars Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Addressing the nation, Prime Minister said that building a Self Reliant India was essential in a post-COVID-19 world. He highlighted that India's self-reliance would be based on 5 pillars - Economy, Infrastructure, System, Demography and Demand. He also announced Rs 20 lakh crore special package to deal CoVID pandemic, nearly 10% of India’s GDP. The Prime Minister emphasized that self-reliance was essential for India's global competitiveness. He said that reforms over the past 6 years have to be taken forward to build a self-reliant India. He further…
13 May, 2020
Economic reforms
CHAMPIONS portal - MSME Introduction In a major initiative, the Union Ministry of MSME has launched the CHAMPIONS portal. About CHAMPIONS portal CHAMPIONS portal is a Technology driven Control Room-Cum-Management Information System. The system utilising modern ICT tools is aimed at assisting Indian MSMEs march into big leagues as National and Global CHAMPIONS. The CHAMPIONS stands here for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding. It is a real one-stop-shop…
13 May, 2020
Industry
Atmanirbhar Bharat Introduction PM announces special economic package; a comprehensive package of Rs 20 lakh crore- package equivalent to 10% of India’s GDP PM gives a call for a self-reliant India; lays down five pillars of Atmanirbhar Bharat. Self-reliant India Talking about the pre and post-COVID worlds, Prime Minister observed that in order to fulfil the dream of making the 21st century India, the way forward is through ensuring that the country becomes self-reliant. (Example of PPE kits N-95 masks, whose production in India has gone up from almost being negligible to 2 lakh each, on a daily basis.) The…
13 May, 2020
Fiscal Policy
Morgan Stanley Capital International (MSCI) MSCI is the world’s biggest index compiler, with more than $10 trillion in assets benchmarked to its products. Recently it said, China’s local currency shares referred to as China ‘A’ shares would be added to the index. MSCI is closely tracked by global investors and the inclusion of china’s shares will open up investment interest from foreign investors and adds financial credibility. If china continues to gain more weightage on the index, more money could flow out of India.
12 May, 2020
Terminology
RBI gold reserves up 40.4 tonnes in 2019-20, more than half of total holdings held overseas Context The RBI’s total gold reserves were 612.56 tonnes in the preceding fiscal ended March 2019. With the addition of more stocks, the value of gold reserves rose to $30.57 billion (around Rs 2,32,000 crore) by March 2020 from $23.07 billion in March 2019. News The Reserve Bank of India (RBI) bought 40.45 tonnes of gold in financial year 2019-20, taking its total holdings of the yellow metal to 653.01 tonnes. The RBI’s total gold reserves were 612.56 tonnes in the preceding fiscal ended…
11 May, 2020
RBI
NDMA ISSUES guidelines for restarting industries post lockdown Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) In its guidelines, NDMA said state governments will ensure that off-site disaster management plans of the respective major Accidental Hazard units are up to date and preparedness to implement them is high. Important points All the responsible officers of the district will ensure that the industrial on- Site Disaster Management Plans are also in place and cover Standard Operating Procedures for the safe restarting of the industries during and after COVID -19 lockdown. In the guidelines, the NDMA has advised the Manufacturing Industries to consider the…
11 May, 2020
Industry
Mattu Gulla growers hope to make profits before the season ends With Udupi district coming under the green zone, prospects have brightened for the growers of Mattu Gulla, brinjal enjoying the Geographical Indication (GI) tag, owing to improvement in transportation and relaxation in lockdown hours. Mattu Gulla is grown by about 150 farmers in Mattu and its surrounding villages, on 129 hectares in the district. This brinjal is known for its unique taste, and a curry prepared from this vegetable is usually a must in religious and auspicious functions. Note for GI TAG: https://www.aspireias.com/daily-news-analysis-current-affairs/Bangalore-Blue-for-Karnatakas-and-GI-analysis
10 May, 2020
GI Tag
NTPC to provide Hydrogen Fuel Cell based electric buses and cars in Leh and Delhi National Thermal Power Corporation Limited (NTPC) has invited Global Expression of Interest (EoI) to provide 10 Hydrogen Fuel Cell (FC) based electric buses and an equal number of Hydrogen Fuel Cell based electric cars in Leh and Delhi. The EoI has been issued by NTPC's wholly owned subsidiary, NTPC Vidyut Vyapar Nigam LIMITED. The move to procure Hydrogen Fuel Cell based vehicles is first of its kind project in the country, wherein a complete solution from green energy to the fuel cell vehicle will be…
09 May, 2020
Automobile industry
After pharma, pesticide industry eyes make in India Opportunity The big opportunity the Indian industry has to undertake is the manufacturing of active ingredients that are scheduled to lose patent protection in the next few years. While the focus has been on pharmaceuticals, the issue of “Chinese dependence” is coming to the fore, especially post Covid-19, also in pesticides. India’s imports of crop protection chemicals – mainly the technical material or active ingredients that go into making end-use formulations – stood at Rs 9,266.84 crore in 2018-19, most of it coming from China (Rs 4,904.28 crore), US (Rs 1,050.69 crore)…
09 May, 2020
Pesticide industry
A decent exchange-Barter System in Fiji Introduction Karl Marx thought, about a century-and-a-half ago, that society moved from primitive communism, through various forms and structures of inequality, to communism proper. Economic systems moved forward, resolving their contradictions and creating new ones. Turns out he was, at best, only half right. Back to the earlier Economic system amidst COVID-19 Mediums of exchange with fictional value — money, in all its forms and abstractions — are premised on a leap of faith. People accept the “promise to pay the bearer” from a distant authority, and lives, communities, economies and civilisations are built…
09 May, 2020
Money Market
Vehicle scrappage policy soon The vehicle scrappage policy is likely to be finalised soon to boost the automobile sector. The Minister of Road Transport and Highways also said that his ministry has fixed a target to build highways worth Rs. 15 lakh crore in the next two years. Important Points The much-awaited vehicle scrappage policy is awaiting final clearance from the Union Cabinet, which will focus on eliminating the fleet of old polluting commercial vehicles plying on the country’s roads. The proposed policy, once approved, will be applicable on all vehicles including two and three-wheelers. Once the policy is approved, India could…
09 May, 2020
Automobile policy
FAME – NATIONAL ELECTRONIC MOBILITY MISSION Part of: GS-III- Economy-Automobile (PT-MAINS-PERSONALITY TEST) The government of India notified FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] for implementation with effect from 1st April 2015, with the objective to support hybrid/electric vehicles market development and Manufacturing eco-system. Objective The FAME India Scheme is aimed at incentivising all vehicle segments i.e. 2 Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial Vehicles and Buses. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug-in Hybrid & Battery Electric Vehicles. Monitoring Authority: Department of Heavy Industries Fame India…
09 May, 2020
Automobile industry
Drop in FPI Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) According to recent data from Central Depository Services Limited (CDSL), the Foreign Portfolio Investors (FPIs) have significantly reduced the pace of outflows from the equity and debt market in April, 2020, after a record net outflow of Rs 1,18,203 crore in March 2020. FPIs sold a net of Rs 6,883 crore from the equities market and net holdings worth Rs 12,551 crore from the debt market in April. In the equity market shares are issued and traded, either through exchanges or over-the-counter markets (i.e directly). It is also known as the stock market. The debt market is the market where debt instruments are traded.…
07 May, 2020
Foreign investment
RBI Cancels Licence of CKP Part of: GS-III- Bank (PT-MAINS-PERSONALITY TEST) Recently, the Reserve Bank of India (RBI) cancelled the licence of Mumbai-based CKP Co-operative Bank. RBI has cancelled the licence of the bank as the financial position of the bank was highly adverse and unsustainable. The bank is not in a position to pay its present and future depositors. The bank failed to meet the regulatory requirement of maintaining a minimum capital adequacy ratio of 9% (PT) and reserves. RBI has asked the Registrar of Co-operative Societies, Maharashtra to start the process of winding up operations of CKP Co-operative bank and appoint a liquidator. On…
07 May, 2020
Banking
Soil Health Card Scheme Context The Union Minister for Agriculture & Farmers’ Welfare, Shri Narendra Singh Tomar has called for making integrated soil nutrient management a farmers’ movement. Reviewing the progress of the Soil Health Programme here today, he directed running mission mode awareness campaigns on increasing use of bio and organic fertilisers and reducing chemical fertilisers strictly based on recommendations of Soil Health Card. About Soil Health Card Soil Health Card (SHC) is a Government of India’s scheme promoted by the Department of Agriculture & Co-operation under the Ministry of Agriculture and Farmers' Welfare. It is being implemented through…
07 May, 2020
Agriculture
Dekho Apna Desh webinar The 13th session of the Ministry of Tourism’s Dekho Apna Desh webinar titled, ‘Destination- Sariska Tiger reserve’ was held recently. The objective of the Ministry of Tourism’s webinar series is to create awareness about and promote various tourism destinations of India – including the lesser known destinations and lesser known facets of popular destinations. Project Tiger Project Tiger is an ongoing Centrally Sponsored Scheme of the Ministry of Environment, Forests and Climate Change providing central assistance to the tiger States for tiger conservation in designated tiger reserves. The National Tiger Conservation Authority (NTCA) is a statutory body of the Ministry, with an overarching supervisory/coordination role,…
06 May, 2020
Tourism
Land management body Part of: GS-III- Economy-Land (PT-MAINS-PERSONALITY TEST) The task force noted there is a need for a separate organisation, which can work with various government departments including Railways and Defence Ministry to utilise their surplus land assets. Context A government panel on boosting infrastructure investment has recommended setting up a National Land Management Corporation, which would help in monetising state-owned surplus land assets in a systematic and specialised way. Imp Points Such a corporation should be set up under the Companies Act to function as the facilitator for land monetisation and an asset manager for lands owned by…
06 May, 2020
Land management
India’s manufacturing sector activity hits record low in April amid lockdown: PMI Survey Part of: GS-III- Economic data (PT-MAINS-PERSONALITY TEST) The country's manufacturing sector activity witnessed an unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said. The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago. The index slipped into contraction mode, after…
05 May, 2020
Economic Data
Pradhan Mantri Jan Aushadhi kendras playing vital role to combat CoVID 19-PMBJP Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Pradhan Mantri Jan Aushadi Kendras are playing a vital role in the COVID-19 situation as around ten lakh persons per day are visiting such Kendras to source quality medicines at affordable prices. Currently, six thousand Jan Aushadi Kendras are working round the clock across the country where at-par quality medicines are sold at a cheaper price by 50 per cent to 90 per cent of the average market price. Last month, around 52 crore rupees worth of medicines have been supplied throughout…
05 May, 2020
PMBJP
Kisan Sabha App Part of: GS-III- Agriculture (PT-MAINS-PERSONALITY TEST) The CSIR-Central Road Research Institute (CSIR-CRRI), New Delhi has developed the Kisan Sabha App to connect farmers to the supply chain and freight transportation management system. The app also intends to provide a robust supply chain management required to facilitate the timely delivery of the products at the best possible prices during the present situation of Covid-19. Imp Points Aim: Kisan Sabha aims to provide the most economical and timely logistics support to the farmers. It also intends to increase the profit margins for farmers by minimizing the interference of middlemen and directly connecting with institutional buyers. It will…
05 May, 2020
Agriculture
Official Digital Currency-China Part of: GS-III- Digital currency (PT-MAINS-PERSONALITY TEST) Recently, China has started testing its official digital currency which is unofficially called “Digital Currency Electronic Payment, DC/EP”. Imp Points The digital currency of China has not been officially released but internal pilot tests are being carried out in four cities of China. China is expected to officially make the sovereign digital currency available to the public later in 2020. It could be considered the world’s first Central Bank Digital Currency (CBDC) if it is officially issued by state bank People’s Bank of China. The total size of China’s digital currency could reach one trillion…
05 May, 2020
Digital currency
Open Budget Survey 2019 Part of: GS-III-Economy (PT-MAINS-PERSONALITY TEST) Recently, the International Budget Partnership (IBP) has released an Open Budget Survey (OBS) 2019. The survey evaluates each country on the basis of the availability of key budget documents of the Central or Federal Government, and assesses whether these are made public, in a timely manner, and provide comprehensive information. Open Budget Survey The Open Budget Survey is part of the International Budget Partnership's Open Budget Initiative, a global research and advocacy program to promote public access to budget information and the adoption of accountable budget systems. It is a biennial survey. The survey covers 117 countries. It rates the…
04 May, 2020
Economic Data
R&D Statistics and Indicators Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) According to the Research & Development (R&D) Statistics and Indicators 2019-20 report, India’s gross expenditure on R&D has tripled between 2008 & 2018 and scientific publications have risen to place the country internationally among the top few. The R&D Statistics and Indicators 2019-20 is based on the national S&T survey 2018 brought out by the National Science and Technology Management Information (NSTMIS). The report on R&D indicators for the nation is an important document for the Evidence-based policymaking and planning in higher education, R&D activities and support, Intellectual property, Industrial competitiveness. Findings of the…
04 May, 2020
Economic Data
Foreign Currency Assets (FCA) FCAs are assets that are valued based on a currency other than the country's own currency. FCA is the largest component of the forex reserve. It is expressed in dollar terms. The FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Special drawing rights (SDR) The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies…
04 May, 2020
Terminology
Forex reserves fall $113 mn to $479.45 bn In the previous week, the reserves had increased by $3.09 billion to $479.57 billion. After rising for the past few weeks, the country’s foreign exchange reserves declined $113 million to $479.45 billion in the week to April 24, due to a fall in foreign currency assets, according to the latest data from the Reserve Bank of India. In the previous week, the reserves had increased by $3.09 billion to $479.57 billion. The reserves had touched a lifetime high of $487.23 billion in the week to March 6, after it rose by $5.69…
03 May, 2020
RBI
‘BHARATMARKET’ for retail traders CAIT said the marketplace will integrate the capabilities of various technology companies to provide end-to-end services in the logistics and supply chains from manufacturers to end consumers, including deliveries at home. The e-commerce portal will include nationwide participation by retailers and aims to bring 95 per cent of retail traders on board the platform, who would exclusively run the portal. The initiative has had the active support and guidance from the Ministry of Commerce and Industry, as they see this as an effective way to get essential commodities to consumers during the lockdown period and within…
03 May, 2020
eCommerce
Kashmir saffron gets GI tag Kashmir saffron, which is cultivated and harvested in the Karewa (highlands) of Jammu and Kashmir, has been given the Geographical Indication (GI) tag by the Geographical Indications Registry. The spice is grown in some regions of Kashmir, including Pulwama, Budgam, Kishtwar and Srinagar. The application was filed by the Directorate of Agriculture, Government of Jammu and Kashmir, and facilitated by the Sher-e-Kashmir University of Agriculture Sciences and Technology, Kashmir, and Saffron Research Station, Dussu (Pampore). Kashmir saffron is a very precious and costly product. Iran is the largest producer of saffron and India is a…
International Financial Services Centres Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) The central government has established International Financial Services Centres Authority to regulate all financial services in International Financial Services Centres (IFSCs) with headquarters in Gandhinagar (Gujarat). Important Points Functions: The authority will regulate financial products such as securities, deposits or contracts of insurance, financial services, and financial institutions which have been previously approved by any appropriate regulator such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) etc., in an IFSC. It will also regulate any other financial products, financial services, or financial institutions in an IFSC, which may be notified…
30 April, 2020
Regulatory authorities
GI tag to Manipur black rice, Gorakhpur terracotta Introduction Both products have been in circulation for centuries and are important sources of income. Chak-Hao, the black rice of Manipur and the Gorakhpur terracotta have bagged the Geographical Indication (GI) tag. Chinnaraja G. Naidu, deputy registrar, Geographical Indications, confirmed that the GI tag had been given for the two products on Thursday. Chak-Hao The application for Chak-Hao was filed by the Consortium of Producers of Chak-Hao (Black Rice), Manipur and was facilitated by the Department of Agriculture, Government of Manipur and the North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC). Chak-Hao,…
01 May, 2020
WTO
March core sector output slumps 6.5% Part of: GS-III- Economic data (PT-MAINS-PERSONALITY TEST) Output at India’s core sector contracted by 6.5% in March, Commerce Ministry data show, reflecting the early impact of the COVID-19 pandemic and the subsequent nationwide lockdown. Important Points The index of eight core sector industries, which form 40% of the weight of items included in the broader Index of Industrial Production (IIP), reflected a contraction in key parts of the economy in March, according to the data released. Its cumulative growth during the last fiscal year was 0.6%. Analysts warned that the core sector data signalled…
01 May, 2020
Economic Data
National Infrastructure Pipeline Part of: GS-III- Economy-Infrastructure (PT-MAINS-PERSONALITY TEST) Recently, the task force headed by Atanu Chakraborty (economic affairs secretary) on National Infrastructure Pipeline (NIP) submitted its final report to the Finance Minister. Imp Points Revised Investment Need: The taskforce has forecast an investment need of ?111 lakh crore over the next five years (2020-2025) to build infrastructure projects and drive economic growth. The final report has revised up NIP from earlier Rs 100 lakh crore in light of additional data provided by central ministries/state governments since the release of summary NIP report. Bulk Share: Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around…
30 April, 2020
Infrastructure
India continues to be on the ‘Priority Watch List’ of the United States Trade Representative (USTR)- Intellectual property (IP) rights Part of: GS-III- CULTURE (PT-MAINS-PERSONALITY TEST) While India made “meaningful progress” to enhance IP protection and enforcement in some areas, it did not resolve recent and long-standing challenges, and created new ones, the United States Trade Representative’s report said. IMP POINTS India continues to be on the ‘Priority Watch List’ of the United States Trade Representative (USTR) for lack of adequate intellectual property (IP) rights protection and enforcement, the USTR said in its Annual Special 301 Report, released. India remained one…
30 April, 2020
India-USA trade relations
UIDAI permits Aadhaar updation facility through CSC- Banking Correspondent Part of: GS-II- GOVERNANCE (PT-MAINS-PERSONALITY TEST) To make Aadhaar updating easier for citizens, Unique Identification Authority of India, UIDAI has permitted Common Service Centre, CSCs, which are designated banking correspondents of banks, to offer Aadhaar services. Around 20,000 such CSCs will now be able to offer this service to citizens. CSC Village Level Entrepreneurs are asked to start the Aadhaar work with responsibility and as per instructions issued by UIDAI in this regard. The decision would further strengthen the efforts of achieving the goals of Digital India as envisaged by Prime…
29 April, 2020
Financial inclusion
Lockdown impact: Domestic sugar consumption Part of: GS-III- Economy-Sugar policy (PT-MAINS-PERSONALITY TEST) According to rating agency Icra, the national lockdown due to the COVID-19 pandemic has adversely impacted the sugar demand, resulting in a decline in sugar prices to closer to minimum support price (MSP) levels of Rs 31 per kg from Rs 32.5 per kg in February 2020. The demand for sugar has witnessed a significant decline following the nationwide lockdown and the overall adverse impact on sugar consumption would be at least one million tonnes in the domestic market. The report further said that the sugar mills…
28 April, 2020
Sugar pricing policy
ITI makes the low-cost aerosol boxes, face shields-Vocational Education in India The government-run Industrial Training Institute (ITI) in Odisha’s Berhampur has prepared low-cost ‘aerosol boxes’ and ‘face shields’ for the medical staff involved in the treatment of COVID-19 patients. At the request of the Ganjam district administration, ITI-Berhampur successfully created cost-effective ‘aerosol boxes’ and ‘face shields’. The market price of an ‘aerosol box’ is 10,000, whereas the ITI-Berhampur has made it at a cost of 3,000. Each ‘face shield’ is sold for 200, while its production cost at ITI-Berhampur is just 11. Aerosol box An ‘aerosol box’ is a transparent…
28 April, 2020
Education
Digital Learning Resources Context: The Class Central (a free online course aka MOOC aggregator from top universities like Stanford, MIT, Harvard, etc.) has released the list of best 30 online courses of 2019 out of which 6 courses are from SWAYAM. ICT in Education: About SWAYAM SWAYAM (Study Webs of Active–Learning for Young Aspiring Minds) is a programme initiated by Government of India and designed to achieve the three cardinal principles of Education Policy viz., access, equity and quality. The objective of this effort is to take the best teaching learning resources to all, including the most disadvantaged. SWAYAM seeks…
28 April, 2020
Education
RBI announces 50,000crore Special Liquidity Facility for Mutual Funds Part of: GS-III- Economy-Capital markets (PT-MAINS-PERSONALITY TEST) The Reserve Bank of India announced a Special Liquidity Facility for Mutual Funds (SLF-MF) of 50,000 crore rupees with a view to easing liquidity pressures on Mutual Funds. The RBI has stated that it remains vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve financial stability. Imp points The Apex bank has said that under the Special Liquidity Facility for Mutual Funds (SLF-MF), the RBI shall conduct repo operations of 90 days tenor at the fixed…
28 April, 2020
Capital Markets
With Europe hit by COVID-19, mango exports from Karnataka look uncertain With most European countries in the grip of the COVID-19 pandemic and many of them going through an extended lockdown period, uncertainty looms over mango exports from Karnataka. Growers producing export-quality fruits are keeping their fingers crossed with limited cargo flight operations. Even though it is an “off-year” for the mango crop, Karnataka was expecting a yield of about 8 lakh tonnes, with the first batch of fruits harvested from trees with “manipulated” flowering already hitting the markets and fetching a handsome price. The fruit varieties, mainly Alphonso, Badam,…
DPIIT, and CAIT join hands to enable kiranas’ foray into the e-comm space The DPIIT has joined hands with CAIT for the development of this platform, which, is expected to be launched in a staggered manner starting early next week. Within days of retail giants Reliance Industries and Amazon India announcing their intent to accelerate their plans of onboarding local retailers and grocers, a group of retail traders has announced a tie-up with the Centre to launch a national e-commerce marketplace, which will help small retailers across the country take orders online. The DPIIT is facilitating the conception and designing…
26 April, 2020
eCommerce
RBI REPORT ON FOREX RESERVES According to the latest data from the Reserve Bank of India, in the reporting week that ended April 17, foreign currency assets (FCA), a major component of the overall reserves, rose from USD 1.55 billion to USD 441.88 billion. The RBI data showed that gold reserves increased from USD 1.54 billion to USD 32.68 billion in the reporting week. While, special drawing rights with the International Monetary Fund, IMF were up by USD 3 million to USD 1.43 billion. The country's reserve position with the IMF remained stable at USD 3.58 billion during the reporting.…
26 April, 2020
Banking
UGC to suggest academic calendar Part of: GS-III- Education (PT-MAINS-PERSONALITY TEST) Panels set up by the University Grants Commission (UGC) have submitted recommendations on the revised academic calendar and suggestions for holding examinations at a time when the country is under lockdown due to the COVID-19 pandemic. The Commission’s members are likely to discuss the recommendations via video-conferencing and issue advisory guidelines for institutions of higher education by the middle of next week, according to UGC officials. Meanwhile, Press Trust of India reported that a panel headed by Central University of Haryana Vice-Chancellor R.C. Kuhad had recommended that the new academic…
26 April, 2020
Education
Chemicals and petrochemical industry became top exporting sector Part of: GS-III- Economy-data (PT-MAINS-PERSONALITY TEST) Union Minister for Chemicals and Fertilizers has congratulated the chemicals and petrochemicals industry on becoming the top exporting sector of the country for the first time. He informed that during April 2019 to January 2020, the export of chemicals grew by 7.43 per cent over previous corresponding period. The total export of chemicals during this period reached 2.68 lakh crore rupees which constitutes 14.35 per cent of the total exports. Government assured the industry of full support towards making India a leading global hub for manufacturing…
Kisan Rath app Context: Ministry of Agriculture & Farmers Welfare launched the “Kisan Rath” App on 17.04.2020 to facilitate Farmers and Traders in identifying the right mode of transportation for the movement of farm produce ranging from food grain (cereal, coarse cereal, pulses etc), Fruits & Vegetables, oil seeds, spices, fibre crops, flowers, bamboo, log & minor forest produce, coconuts etc. To date, a total of 80,474 farmers and 70,581 traders are registered on this App. Kisan Rath mobile app: The Ministry of Agriculture & Farmers Welfare has launched the ‘Kisan Rath’ mobile application (app) to facilitate the transportation of foodgrains and perishable during lockdown The application has…
25 April, 2020
Agriculture
National Policy on Marine Fisheries, 2017 In April 2017, the Government of India notified the 'National Policy on Marine Fisheries, 2017' (NPMF), which provides guidance for promoting the 'Blue Growth Initiative' which focuses on ushering 'Blue Revolution' (NeeliKranti) by sustainable utilization of fisheries wealth from the marine and other aquatic resources of the country for improving the lives and livelihoods of fishermen and their families. Government of India envisages bringing out a National Fisheries Policy for holistic development of the fisheries sector. The proposed policy would incorporate the provisions of the existing National Policy on Marine Fisheries, 2017 and will…
24 April, 2020
Agriculture
Horticulture - Mission for Integrated Development of Horticulture (MIDH) Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Recently, the Department of Agriculture, Cooperation and Farmers Welfare released the Third Advanced Estimate (2018-19) of Area and Production of various Horticulture Crops. As per the report, the total horticulture production in the country is estimated to be 313.85 million tonnes which is 0.69% higher than the horticulture production of 311.71 million tonnes in 2017-18. The area under horticulture crops has increased to 25.49 million hectares in 2018-19 from 25.43 million hectares in 2017-18. What is Horticulture? Horticulture is the branch of agriculture concerned with intensively cultured plants directly used by man for food, medicinal purposes and aesthetic gratification. In…
24 April, 2020
Horticulture
Khadi and Village Industries Commission (KVIC) Context: When the country was struggling hard with the deadly Coronavirus, the Khadi and Village Industries Commission (KVIC), an autonomous body under the Ministry of MSME, in collaboration with its Khadi Institutions (KIs) in Tamil Nadu discharged its responsibility once again by purchasing cocoons from cocoon farmers. The main objectives of KVIC was to help the cocoon farmers struggling to sell their crop due to lock down pandemic outbreak and secondly to ensure the continuous supply of Cocoons to the khadi institutions involved in Silk production. Khadi and Village Industries Commission (KVIC) The Khadi…
24 April, 2020
Industry
Fitch ratings slashes India’s economic growth projection to 0.8% in current fiscal The leading credit rating agency, Fitch Ratings has slashed India's economic growth projections to 0.8 per cent in the current fiscal saying an unparalleled global recession was underway due to disruptions caused by the outbreak of Corona virus pandemic and resultant lockdowns. In its Global Economic Outlook, Fitch Ratings said India's Gross Domestic Product (GDP) growth will slip to 0.8 per cent for the year April 2020 to March 2021 as compared to an estimated 4.9 per cent growth in the previous fiscal. Growth is, however, expected…
24 April, 2020
Government policies and interventions
Alternative Academic Calendar for classes 6 to 8 Part of: GS-II- Education (PT-MAINS-PERSONALITY TEST) Human Resource Development Minister released the Alternative Academic Calendar for the upper primary stage, Classes 6 to 8 in New Delhi. The alternative academic calendars at the primary and upper primary stages have been developed by the NCERT under the guidance of the MHRD to engage students meaningfully during their stay at home due to COVID-19. Imp Points This Calendar provides guidelines to teachers on the use of various technological tools and social media tools available for imparting education in fun-filled, interesting ways. Very soon all the…
24 April, 2020
Education
Remittances likely to plunge 23%: World Bank Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) The World Bank has said that remittances to India are likely to drop by 23 per cent from 83 billion US Dollars last year to 64 billion US Dollars this year due to the Coronavirus pandemic, which has resulted in a global recession. According to a World Bank report on the impact of COVID-19 on migration and remittances, the remittances are projected to decline sharply by about 20 per cent this year due to the economic crisis induced by the pandemic and shutdowns due to the outbreak…
24 April, 2020
Remittances
Trump set to sign immigration order Context: President Donald Trump confirmed he would sign an order later on Wednesday partially blocking immigration to the U.S., in a move he argues would protect workers from the economic fallout of the COVID-19 pandemic. Immigration is a key issue for Mr. Trump's conservative base, which he is keen to energise ahead of the November election. News: Issuing of green cards — permanent residency permits — would be stopped for 60 days, but would exempt temporary workers such as seasonal farm labourers. It will help put unemployed Americans first in line for jobs as…
23 April, 2020
International migration
Global remittances will see a sharp fall: World Bank The World Bank has predicted global remittances, the money sent home from people working abroad, will fall by around 20% in 2020 as economic activity grinds to a halt due to the coronavirus pandemic and labour migrants lose wages and access to remittance services. The Bank, which released a report on the issue today, recommends making remittances cheaper and classifying them as “essential” services to prevent families falling over the edge into severe poverty. According to World Bank report, Migrant remittances provide an economic lifeline to poor households in many countries.…
23 April, 2020
Remittances
SEBI eases norms on IPO, rights issues What’s in News? The Securities and Exchange Board of India (SEBI) has relaxed certain regulatory requirements related to rights issues and initial public offers (IPOs) to make it easier for companies to raise funds at a time when the COVID-19 pandemic has made the secondary markets increasingly volatile. Details: SEBI has said that any listed entity with a market capitalisation of at least? 100 crore can use the fast-track route for the rights issues. Earlier, the base limit was set at? 250 crore for such offerings. Any company that has been listed for 18 months can raise…
23 April, 2020
Stock market
Jio partnership with Facebook In a major boost to Reliance Jio, social media giant Facebook is investing $5.7 billion (Rs 43,574) in it, making Facebook its largest minority shareholder. The deal has been announced this morning, with Jio putting out a media note and Facebook talking about it on its official blog post. Jio said that the Facebook investment that it is receiving is the “largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. Facebook is investing $5.7 billion (Rs 43,574 crore) in Jio platforms.…
23 April, 2020
Merger and acquisition
Covid-19 and Economic shocks Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Steep fall in crude oil prices. Recently, May futures for the West Texas Intermediate (WTI) U.S. crude has plunged below zero and Brent crude futures have also witnessed a steep decline. A negative price implies that a seller would have to pay the buyer to hold the oil to be supplied. Causes: The unprecedented plunge in the particular futures contract could be partly as a technical anomaly given the way future contracts work. However, there has also been a constant and steep fall in the oil prices. The price war between the key producers Saudi Arabia…
23 April, 2020
Economic crisis
E-Commerce and recent Rules-FDI Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) Electronic commerce or e-commerce is a business model that lets firms and individuals buy and sell things over the Internet. Propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer wealth, the Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion in 2017. India’s e-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51%, the highest in the world. The Indian e-commerce industry has been…
22 April, 2020
eCommerce
'SWAYAM' and eLearning – Digital learning Part of: GS-II- Education (PT-MAINS-PERSONALITY TEST) Human Resource Development held a detailed review of the National online education platform SWAYAM and the 32 DTH Television Education Channels SWAYAM PRABHA. During the meeting, a brief presentation of the progress of these schemes was made. In the lockdown condition there has been a tremendous increase in demand and the usage of SWAYAM Courses and SWAYAM PRABHA videos. The Ministry in a statement said that 1902 courses are available currently in SWAYAM, which have been offered to 1.56 crore students since launch. It was decided that all…
21 April, 2020
eLearning
Active pharmaceutical ingredients and Schemes Approved to Promote Drug Manufacturing Part of: GS-III- Economy and Manufacturing (PT-MAINS-PERSONALITY TEST) The pharmaceutical drugs which are biologically active are called active ingredients (AI). In medicine, terms such as bulk active and active pharmaceutical ingredients (API) are also interchangeably used. For natural products, the term active substance is used. There are certain medication products that could comprise of multiple active ingredients. “Pharmacon” or “Pharmakon”, is a traditional word for Active Pharmaceutical Ingredient originally denoting a magical drug or substance. Often, “active constituent” is used while giving references to the active substance of interest in…
20 April, 2020
Drugs and Pharmaceuticals
Govt. nod mandatory for FDI from neighbouring countries Part of: GS-III- Economy - FDI (PT-MAINS-PERSONALITY TEST) China’s footprint in the Indian business space has been expanding rapidly, especially since 2014. The Chinese investment in India in 2014 stood at $1.6 billion. This involved mostly investment from Chinese state-owned players in the infrastructure space in India. By 2017, the total investment had increased five-fold to at least $8 billion accompanied by a marked shift from a state-driven to market-driven approach. The report, titled “Following the Money: China Inc’s Growing Stake in India-China Relations” estimates that the total current and planned Chinese investment…
20 April, 2020
FDI REFORMS
Special Drawing Rights: IMF Recently, the Finance Minister of India opposed a general allocation of new Special Drawing Rights (SDR) by the International Monetary Fund (IMF) because it might not be effective in easing Covid-19-driven financial pressures. The Finance Minister was concerned that such a major liquidity injection could produce potentially costly side-effects if countries used the funds for irrelevant purposes. The new SDR allocation will provide all 189 members with new foreign exchange reserves with no conditions. Imp Points The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for…
18 April, 2020
Financial Market
Ways and Means Advances (WMA) The WMA are short-term loan facilities which allow the Centre and states to borrow funds from the RBI to bridge their temporary mismatch between expenditure and receipts. The interest rate on WMA is the RBI’s repo rate. The Repo rate is basically the rate at which RBI lends short-term money to banks. The WMA loans have a three-month tenure. States are allowed an overdraft facility (to borrow in excess of the WMA limit) of 21 days.
18 April, 2020
Banking
Farm Loan Waiver When there is a poor monsoon or natural calamity, farmers may be unable to repay loans. The rural distress in such situations often prompts States or the Centre to offer relief,reduction or complete waiver of loans. Essentially, the Centre or States take over the liability of farmers and repay the banks. Waivers are usually selective , only certain loan types, categories of farmers or loan sources may qualify. For instance, in 2008, crop loans and investment loans were waived for marginal and small farmers (those with less than 2 hectares of land ownership); other farmers were only…
18 April, 2020
Agriculture
RBI to infuse Rs 1 lakh crore – LTRO – RBI Reforms Part of: GS-III- RBI reforms (PT-MAINS-PERSONALITY TEST) Context RBI Governor Shaktikanta Das announced new measures to maintain adequate liquidity in the system, facilitate bank credit flow and ease financial stress. RBI announced 50,000 crore worth of targeted LTRO and a cut in reverse repo rate. As India entered into the second phase of a nationwide lockdown to combat coronavirus, Reserve Bank of India (RBI) Governor Shaktikanta Das announced new measures to boost liquidity, expand bank credit flow and ease financial stress. To benefit NBFCs and micro-financial institutions, the central…
18 April, 2020
Banking
Analysis of Depreciating Rupee Part of: GS-II- Labour reforms (PT-MAINS-PERSONALITY TEST) The value of the Indian rupee against dollar has significantly declined to the level of Rs 76 further impacted by COVID-19. Fall in the rupee has become a matter of concern as it can slow down the economic growth, corporate earnings, and can lead to market volatility. Currency depreciation for any developing economy could be a major stumbling block in its growth. It calls for measures to encourage exports and strengthen the manufacturing sector to reduce import overdependence. Government has announced several steps including steps to curb the import of…
17 April, 2020
Rupee Depreciating
Rural Industries – MSME ACT – MGNREGA Part of: GS-III- Energy/Industries (PT-MAINS-PERSONALITY TEST) Rural industrial activities can be divided into the following three categories: small-scale cottage activities, medium-scale village enterprises, and large-scale rural industries. This classification can be carried out on the basis of the following criteria: Location; ownership; labour source and organization; the complexity of the technology used; the scale of production; regularity of production; a form of organization; flexibility of energy source and use. Cottage Industries: The cottage industry is a concentrated form of small-scale industry that can be started with very low investments. The cottage industry is…
16 April, 2020
Industry
Renewable Energy Certificates (RECs) Union Minister of Power and New & Renewable Energy, Shri RK Singh has given his assent to amendments in the existing Renewable Energy Certificate (REC) mechanism. The sales of Renewable Energy Certificates (RECs) rose over 79 % to 8.38 lakh units in March 2020 compared to 4.68 lakh in the same month a year ago owing to good supply. Features of Renewable Energy Certificates (RECs) Mechanism Renewable Energy Certificates (RECs) is a market-based instrument to promote renewable sources of energy and the development of the market in electricity. One REC is created when the one-megawatt hour of electricity is generated from an eligible renewable energy source. REC…
30 September, 2021
Renewable energy
COVID-19 and Corporate Social Responsibility (CSR) Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST) The Ministry of Commerce and Industry has clarified that the contributions to the Chief Minister’s Relief Fund or the State relief fund will not qualify as Corporate Social Responsibility (CSR) expenditure, while any donation to the PM CARES Fund will. Important Points The Chief Minister’s Relief Fund or State Relief Fund for Covid-19 is not included in Schedule VII of the Companies Act, 2013, and therefore any contribution to such funds shall not qualify as admissible CSR expenditure. Schedule VII of the Companies Act, 2013 provides the list of activities that can be included in…
14 April, 2020
Company laws
COVID-19 and World reports Part of: GS Prelims and GS-III- Economy (PT-MAINS-PERSONALITY TEST) 1. Asia Development Bank assures India 2.2 billion support to fight COVID: Asian Development Bank today assured India of 2.2 billion US dollar support to fight against the COVID-19 pandemic. The financial support of about 16,500 crore rupees. In a call, Asakawa commended the Indian Government's decisive response to the pandemic, including a National Health Emergency programme. He commended tax and other relief measures provided to businesses. ADB President also appreciated 1.7 lakh crore rupees economic relief package to provide immediate income and consumption support to the…
13 April, 2020
Economic Data
COVID-19 and EPFO - LABOUR REFORMS Part of: GS Prelims and GS-III- ECONOMY-EPFO (PT-MAINS-PERSONALITY TEST) EPFO processes around 1.3 lakh claims, disburse to help fight corona to the subscriber Employees Provident Fund Organization, EPFO, has processed about 1.37 lakh claims disbursing 279.65 crore rupees under a new provision to help subscribers fight COVID-19. This provision was especially formulated by amending the EPF Scheme. The remittances of the money have already started taking place. The system as it stands today is processing all applications which are fully KYC compliant within less than 72 hours. The provision for a special withdrawal from…
13 April, 2020
Labour
NBFCs Face Moratorium Issue with Banks Part of: GS Prelims and GS-III- Economy-Bank (PT-MAINS-PERSONALITY TEST) Non-Banking Financial Companies (NBFCs) may face a tough time following the Reserve Bank of India’s recent directive on providing a moratorium on repayment. This is because though these entities are providing moratoriums to their customers, they still have to continue repaying banks and other borrowers. Important Banks are not willing to offer any moratorium on term loans taken by the NBFCs. This has put significant pressure on liquidity profiles of many NBFCs. A significant part of money disbursed by NBFCs is loan taken from banks. Moratorium simply refers to a legal…
12 April, 2020
Banking
Industrial revolution 4.0 Part of: GS Prelims and GS-III- Economy (PT-MAINS-PT) Technology forms the subtext of human development. History is loaded with instances of technology serving as catalysts in the grand narrative of human development. From basic necessities like food, air, water, clothing and shelter, to structural requirements like security technology has played a tremendous role in every field of human growth and survival. The invention of the transistor: Around the year 1948 the invention of the transistor, a device with the potential to have numerous applications in radio technology by replacing the vacuum tube, took place. The transistor is…
12 April, 2020
Industry
Centre approves extension of Bank Board Bureau members’ According to the Department of Financial Services, the Appointments Committee of the Cabinet (ACC) has approved the extension of the tenure of all members and the current part-time chairman of the Bank Board Bureau(BBB) by 2 years, which is coming to an end on April 11, 2020. Key Points: i.Bhanu Pratap Sharma, the former Secretary in the Department of Personnel and Training, will continue to hold the post of a part-time member of the board. ii. Other part-time members of the board include Vedika Bhandarkar, former MD (managing director) of Credit Suisse; P Pradeep Kumar,…
10 April, 2020
Banking
GDP deflator The Gross Domestic Product (GDP) deflator is a measure of general price inflation. It is calculated by dividing nominal GDP by real GDP and then multiplying by 100. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation (It is the GDP measured at current prices). Real GDP is nominal GDP, adjusted for inflation to reflect changes in real output (It is the GDP measured at constant prices). GDP Deflator = Nominal GDP x 100 Real GDP Importance of GDP Deflator There are other measures of inflation too like Consumer Price Index (CPI) and Wholesale Price Index (or WPI); however GDP…
10 April, 2020
Terminology
Gadgil-Mukherjee Formula Up to the 3rd Five Year Plan (FYP) [1961-66] and during Plan Holiday (1966-69), allocation of Central Plan Assistance was schematic and no formula was in use. The Gadgil Formula comprising (i) Population [60%] (ii) Per Capita Income (PCI) [10%] (iii) Tax Effort [10%] (iv) On-going Irrigation & Power Projects [10%] and (v) Special Problems [10%] was used during 4th FYP (1969-74) and 5th FYP (1974-78). However, since item (iv) was perceived as being weighted in favour of rich states, the formula was modified by raising the weightage of PCI to 20%. The National Development Council (NDC) approved…
10 April, 2020
Terminology
Angel Funds Part of: GS Prelims and GS-III- Economy-tax Angel funds refer to a money pool created by high-net-worth individuals or companies (generally called angel investors), for investing in business start-ups. They are a sub-category of venture capital funds with a strict focus on startups, while venture capital funds generally invest at a later stage of the development of the investee company. In India, the term Angel Funds is defined in SEBI (Alternative Investment Funds) (Amendment) Regulations, 2013. Here, an Angel fund is defined as a sub-category of Venture Capital Fund under Category I- Alternative Investment Fund (AIF) (pt) that raises…
10 April, 2020
Terminology
Madhya Pradesh railways design a mobile doctor booth called ‘CHARAK’ Madhya Pradesh railways design a mobile doctor booth called ‘CHARAK’ for zero-contact check-ups, the West Central Railway’s Coach Rehabilitation Workshop (CRWS) in Madhya Pradesh’s (MP) Bhopal city, has created a mobile doctor booth called “CHARAK” to eliminate the possibility of physical contact between the doctor and the coronavirus (COVID-19) infected patient. Key Points: i.A viral barrier chamber has been built in the railway compartment itself, through which doctors will be able to examine patients without direct physical contact. ii.This system will prove to be very helpful as there is a shortage of…
10 April, 2020
Government policies and interventions
Fall in IHS Markit Part of: GS Prelims and GS-III- Economy Data The IHS Markit India Services Business Activity Index (i.e Service Purchasing Managers’ Index (PMI)) was at 49.3 in March, down from February’s 85-month high of 57.5. Important The Index is compiled by IHS Markit for more than 40 economies worldwide. IHS Markit is a global leader in information, analytics and solutions for the major industries and markets that drive economies worldwide. The fall implies contraction in India’s services sector activity during March basically due to COVID-19. The COVID-19 pandemic has reduced demand, particularly in overseas markets. Nationwide store closures and prohibition to leave the…
08 April, 2020
Economic Data
Financial Intelligence Unit-India FIU-IND is a central, national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs. It was set up in 2004. It is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
08 April, 2020
Terminology
RBI relaxed the norms of State/UT to avail overdraft On April 7, 2020, The Reserve Bank of India (RBI) decided to increase the number of days that a State/UT can continue to overdraft to 21 working days from the current stipulation of 14 working days as they are facing cash flow mismatches due to coronavirus. Key Points i.In addition, the number of days that a State/UT can overdraft in a quarter has also been increased to 50 working days from the current stipulation of 36 working days, while all other stipulations remain unchanged. ii. The new arrangement is effective immediately and is valid until September 30, 2020. iii. It has also…
08 April, 2020
Banking
National Securities Depository Limited PT PICKUPS The enactment of the Depositories Act in August 1996 paved the way for the establishment of NSDL in August 1996. It handles most of the securities held and settled in dematerialized form in the Indian capital market. NSDL works to support the investors and brokers in the capital market of the country. It aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. Domestic institutional investors DIIs are those institutional investors who undertake investment in securities and other financial assets of the country they…
05 April, 2020
Terminology
3 new features of the e-NAM platform to prevent crowding in mandis Part of: GS Prelims and GS-III- Economy -Agriculture The Union Minister of Agriculture & Farmers’ Welfare, Rural Development and Panchayati Raj, Narendra Singh Tomar has launched three new features of the National Agriculture Market (e-NAM) Platform to enable farmers to sell their harvested produce directly from the warehouse which will prevent crowding in mandis amid COVID-19 outbreak. About newly launched software modules in e-NAM software: i.Negotiable Warehouse Receipt (e-NWRs) module– It will enable small & marginal farmers to directly trade their stored produce from selected Warehousing Development and Regulatory Authority (WDRA) accredited…
04 April, 2020
Agriculture
Impact of Lockdown on Banks Part of: GS Prelims and GS-III- Economy -Bank Banks are concerned about the build-up of Non-performing Assets (NPAs) as the disruption caused to business operations and supply chains during the 21-day lockdown period will take time to repair. This is despite the fact that the Reserve Bank of India (RBI) has injected fresh liquidity into the banking system and given banks leeway to deal with potential stress in loan accounts. What is NPA? NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest. In most…
03 April, 2020
Banking
Initiatives to Fight Coronavirus – Part-3 Part of: GS Prelims and GS-III- Economy and Health I. Geo-fencing app will be used to locate quarantine violators Context: The Centre is using powers under the Indian Telegraph Act to fetch information from telecom companies every 15 minutes to track COVID-19 cases across the country. COVID-19 Quarantine Alert System (CQAS): The Department of Telecommunications (DoT) has shared a standard operating procedure (SOP) with all telecom service providers regarding the application called COVID-19 Quarantine Alert System (CQAS). The government has tested this application which triggers e-mails and SMS alerts to an authorised government agency if…
03 April, 2020
Government policies and interventions
3rd April Lifeline Udan flights launched and COVID-19 As a part of curbing the adverse impact of COVID 19, the Ministry of Civil Aviation (MoCA) launched Lifeline Udan flights on March 26, 2020 for movement of medical and essential supplies across India. Over a 6 days period i.e. till March 31, 2020, 74 flights have been operated which had covered an aerial distance of over 70,000 km to transport 37.63 tonnes of medical cargo, out of which more than 22 tonnes was transported on March 31, 2020. The flight operators include Air India, Alliance Air, IAF, Pawan Hans and private carriers. It should be noted…
03 April, 2020
Infrastructure
Core Sector Growth at 5.5% Part of: GS Prelims and GS-III-Economic data According to the data released by the Ministry of Commerce and Industry, the eight core sector industries recorded a growth of 5.5% in February, 2020 which is highest in 11-months. Key Points This spike is because of growth in refinery products, electricity, fertiliser, cement and coal production. However, crude oil, natural gas, and steel recorded negative growth rate in February. This was the fourth consecutive month when the index of eight core industries reported growth. The outlook may not be very bright for March 2020, as the lockdown to check the spread of Covid-19 has disrupted the production process in…
03 April, 2020
Economic Data
Exchange Traded Fund An Exchange-Traded Fund (ETF) is a basket of securities that trade on an exchange, just like a stock. ETF reflects the composition of an Index, like BSE Sensex. Its trading value is based on the Net Asset Value (NAV) of the underlying stocks (such as shares) that it represents. ETF share prices fluctuate all day as it is bought and sold. This is different from mutual funds which only trade once a day after the market closes. An ETF can own hundreds or thousands of stocks across various industries, or it could be isolated to one particular industry or sector.
01 April, 2020
Terminology
Fund raising – COVID-19 Part of: GS Prelims and GS-III- Economy terms Recently, the Government has hiked Ways and Means Advance (WMA) limit with the Reserve Bank of India (RBI) by 60%. (PT SHOT) WMA limit is proposed to be revised to Rs 1.20 lakh crore and would be reviewed on a need basis (from Rs 75,000 crore last year). This is to compensate for the cash flow mismatch in Financial Year (FY) 21 expected from higher spending to combat the spread of COVID-19. Ways and Means Advance scheme The Ways and Means Advances scheme was introduced in 1997. The Ways and Means Advances scheme…
01 April, 2020
Government policies and interventions
COVID-19 and Globalisation Part of: GS Prelims and GS-III- Economy What is Globalisation? The meaning of Globalisation is usually interpreted to indicate the integration of the economy of the nation with the world economy, it is a multifaceted aspect. It is a result of the collection of multiple strategies that are directed at transforming the world towards greater interdependence and integration. It includes the creation of networks and pursuits transforming social, economic and geographical barriers. Globalisation tries to build links in such a way that the events in India can be determined by events happening distances away. To put it…
01 April, 2020
Process of Globalization
Volatility index Part of: GS Prelims and GS-III- Econo VIX (Volatility index) is an index used to measure the near term volatility expectations of the markets. Volatility signifies the rate and magnitude of change in the stock price or index value. The movement in the VIX index reflects the overall market volatility expectations over the next 30 days. Given the nature of the index, it is also known as ‘fear gauge’ or ‘fear index’. The VIX index was first created by the Chicago Board Options Exchange (CBOE) and introduced in 1993 based on the prices of S&P 500 index. India VIX The India VIX was launched by National Stock Exchange (NSE) in…
30 March, 2020
Terminology
Kerala sought a relaxation of FRBM rules Part of: GS Prelims and GS-III- Economics Kerala is seeking relaxation from the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act. Kerala Economic package: Kerala had announced an economic package of 20,000 crore rupees to mitigate the impact on livelihoods and overall economic activity from the steps taken to battle the COVID-19 pandemic. To help fund the emergency relief package, Kerala proposes to borrow as much as 12,500 crore rupees from the market. Details: Fiscal Responsibility and Budget Management (FRBM) Act: The FRBM Act was enacted in August 2003. The FRBM Act is aimed at…
29 March, 2020
FRBM act
Initiatives to Fight Coronavirus – Part-2 Part of: GS Prelims and GS-III- Health I. India is all set to join the World Health Organisation’s (WHO) Solidarity Trial which aims at rapid global search for drugs to treat COVID-19. Key Points India has stayed away from the multi-country trial till now due to its small sample size. It will express its interest to participate in the trial for the Indian population when it feels that the time is right. Vaccine development wasn’t a priority for Indian Council of Medical Research (ICMR) currently because there are around 30 vaccine groups already in operation worldwide. Keeping in view the rising number of…
28 March, 2020
Government policies and interventions
Initiatives to Fight Coronavirus Part of: GS Prelims and GS-III- Health I. Recently, the Government has developed a platform which will host webinars by All India Institutes of Medical Sciences (AIIMS) doctors for healthcare workers across the country. It has also developed an app that will trace the paths of COVID-19 positive patients, serving as a warning to possible contacts. Key Points Chat Boxes on Facebook and WhatsApp have been set up by the Ministry of Electronics and Information Technology (MeitY) for providing information about COVID-19. A portal to map the requirements of hospitals, and cross-referencing them with those who have offered to help with equipment is also…
27 March, 2020
Government policies and interventions
Rebate of State and Central Taxes and Levies (RoSCTL) The Union Cabinet has given its approval for the continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) from 1st April 2020 onward until it is merged with the Remission of Duties and Taxes on Exported Products (RoDTEP). Continuation of RoSCTL beyond 31st March 2020 is expected to make the textile sector competitive by rebating all taxes/levies which are currently not being rebated under any other mechanism. Announced on 7th March, 2019, RoSCTL was offered for embedded state and central duties and taxes that are not refunded through Goods and Services Tax. It was available only for garments…
26 March, 2020
Terminology
Economic package during COVID-19 Part of: GS Prelims and GS-III- Economics The Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman announced Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus. While addressing the press conference here, Smt. Sitharaman said “Today’s measures are intended at reaching out to the poorest of the poor, with food and money in hands, so that they do not face difficulties in buying essential supplies and meeting essential needs.” Finance Minister announces Rs 1.70 Lakh Crore relief package under…
26 March, 2020
welfare
RRB and COVID-19 Part of: GS Prelims and GS-III- Economics Recently, the Centre has approved a ?1,340-crore recapitalisation plan for Regional Rural Banks (RRBs). The move is crucial to ensure liquidity in rural areas during the lockdown due to the COVID-19 crisis. Key Points This recapitalisation (a strategy of enhancing the financial base of an entity to overcome a rough financial situation) would improve their capital-to-risk weighted assets ratio (CRAR) and strengthen these institutions for providing credit in rural areas. The step will help those RRBs which are unable to maintain a minimum CRAR of 9%, as per the regulatory norms prescribed by…
26 March, 2020
Banking
Currency swap agreement Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: on the currency swap agreement and its significance News: Reserve Bank of India (RBI) governor made a case for international multilateral agencies like the International Monetary Fund (IMF) to launch currency swaps for countries affected by the spread of COVID-19, also known as coronavirus. Need A swap line was critical from the point of view of preserving global financial stability. The global economy has been hit hard by COVID-19. According to IMF projections, the…
07 March, 2020
Terminology
NRIs permitted to own 100% stake in Air India Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: about the move to privatize Air India and its significance; about Air India News: The Union cabinet approved a proposal to let non-resident Indians (NRIs) own up to a 100% stake in Air India Ltd as the government attempts to make a success of its second attempt to completely privatize the debt-laden airline. Background In the government, which aims to divest its entire stake in Air…
05 March, 2020
Industry
Limited Liability Partnerships (LLPs) Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the scheme and its benefits; about LLPs and their advantages News: The government is set to introduce an amnesty scheme for Limited Liability Partnership (LLP) firms for delays in mandatory filings which could benefit 20-25 per cent of the 1.25 lakh LLPs registered in the country. Aim: The move is aimed at bringing non-compliant LLPs into the legal fold. Background The government had in January extended a provision in the Companies Act to LLPs…
04 March, 2020
Terminology
Long-term Repo Operations (LTRO) Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about LTRO: features and significance News: The Reserve Bank of India had received Rs.1.71 lakh crore in the third long-term repo operation (LTRO) conducted for an amount of Rs.25,000 crore. The central bank received 66 bids in the three-year tenor LTRO, which has a reversal date on March 1, 2023. Background It has already conducted two LTROs for Rs.25,000 crore each on February 17 and February 24. In the February 17 LTRO…
03 March, 2020
Banking
The fiscal deficit touches 128.5% of the Budget Estimate Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the government’s fiscal deficit target; on various terms used in the budget News: The fiscal deficit touched 128.5 per cent of the whole-year Budget target during the April-January period. Background The deficit in the year-ago period was 121.5 per cent of the corresponding target. The government had targeted to restrict the fiscal deficit (RE) at Rs 7,66,846 crore for the year ending March 31, 2020. …
29 February, 2020
Budget
National Pharmaceutical Pricing Authority About NPPA The National Pharmaceutical Pricing Authority (NPPA) is a government regulatory agency that controls the prices of pharmaceutical drugs in India. NPPA (National Pharmaceutical Pricing Authority) was constituted vide Government of India Resolution dated 29th August 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers as an independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices. Functions of NPPA (National Pharmaceutical Pricing Authority) To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers…
28 October, 2021
Pharmaceutical
Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: about the disinvestment plan and its benefits; about LIC News: The government is working on the modalities of Life Insurance Corporation of India (LIC) share sale which is India’s largest and oldest life insurer. Background The Budget 2020-21 announced an ambitious disinvestment agenda, aiming to raise Rs 2.1 lakh crore through stake sales next year, including plans to sell part of the government’s stake in LIC, the country’s largest insurer, through an initial public offering…
FDI policy regarding Special Economic Zones (SEZs) Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: above the move and its significance; about SEZs News: Goods procured from units in special economic zones (SEZ) by single-brand retailers, owned by foreign companies, would qualify for meeting the mandatory 30% local sourcing norms, the government said in a clarification. Background The statement came in the wake of the government having received representations from various business entities seeking clarification whether sourcing of goods from units located in…
27 February, 2020
Industry
RBI study on digital payments Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the RBI study and its key findings News: A Reserve Bank of India (RBI) study on the progress of digitisation from cash to electronic was recently released. Key findings of the study Cash still rules, but it is increasingly seen as a way to store value as an economic asset rather than to make payments. Although cash is deeply embedded in the payment systems in India, planned efforts post-demonetisation have shown a…
25 February, 2020
Others
Consumer Price Index (CPI) Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on CPI and its significance; on inflation targeting News: The RBI governor has stressed the need to review the monetary policy framework. An inflation targeting framework is effective when the measure of inflation is accurate. But there are concerns about CPI’s composition. What is CPI and how is it computed? The consumer price index (CPI) measures the changes in the prices of goods and services that are consumed by households. The rural CPI index…
21 February, 2020
Terminology
Operation Control Centre for goods trains Syllabus subtopic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Prelims and Mains focus: on DFCs and their significance; about DFCCIL News: The world’s second-biggest Operation Control Centre for goods trains, built in India by the Dedicated Freight Corridor Corporation of India (DFCCIL) is ready to begin operations. About the centre The centre, built at Prayagraj in Uttar Pradesh, will be the ‘nerve-centre’ of the over 1,800 km-long eastern dedicated freight corridor. The control centre has a theater which measures 1560 sq m, with a video wall of more than 90 m and…
21 February, 2020
Others
Force Majeure Clause Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the move and its implications; on the force majeure clause News: The government said supply chain disruptions caused by the novel coronavirus (Covid-19) outbreak in China would allow companies to invoke the force majeure clause Background The announcement comes a day after Finance Minister met several industry representatives to take stock of the situation, announcing the government would “speedily” formulate measures to minimise its impact on sectors. The Department of Expenditure in a notification…
20 February, 2020
Terminology
Pledging of Shares Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: about the move; benefits and significance; about share pledging News: The Securities and Exchange Board of India (SEBI) has amended the SEBI (Depositories and Participants) Regulations by including an additional explanation that states that ‘pledge’ would also refer to ‘re-pledge of securities for margin or settlement obligations.’ Why? A minor tweak in the manner ‘pledge’ is defined in the regulatory laws is expected to go a long way in minimising instances where…
20 February, 2020
Stock market
The link between small savings and deficit Prelims and Mains focus: on the exemptions in this year’s budget and its impact on savings and deficit News: Getting rid of exemptions under a new tax regime proposed by the budget could make small savings less attractive for individuals and dry up this source of funds for the government. How do exemptions apply to small savings? Small savings schemes are savings instruments such as the Public Provident Fund, National Savings Certificate and Sukanya Samriddhi. These are central government schemes that allow depositors tax exemption on such deposits up to…
20 February, 2020
Budget
Foodgrain production set to touch a record high Syllabus subtopic: Major Crops - Cropping Patterns in various parts of the country Prelims and Mains focus: on the foodgrain production in India and the challenges associated News: The Agriculture Ministry’s second advance estimates were released recently. Key highlights Total foodgrain production is projected to scale an all-time high of almost 292 million tonnes in 2019-20, propelled by record production of both rice and wheat. Production of several crops, including rice and major pulses, was lower than targeted in the kharif or the monsoon season. However, the abundance…
19 February, 2020
Agriculture
Bank Frauds in India Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the frauds in Indian banks: causes and link to slow growth Context: Banking frauds have been rising. During the first six months of this fiscal, frauds of Rs.1 lakh and above, as reported by commercial banks, touched Rs.1.13 trillion. This, after frauds worth Rs.41,167 crore had been reported in 2017-18. By how much have bank frauds risen? As the above chart shows, total bank frauds reported in 2015-16 stood at…
17 February, 2020
Banking
New Textiles Policy 2020 Background The existing National Textile Policy 2000 was framed about 13 years ago. Since then, the industry has undergone various changes on the domestic and international front. The domestic textile industry has seen large-scale modernization and technological up-gradation in the last decade and faces new challenges. About the New Textile Policy 2020 It is aimed at developing in the country a competitive textile sector that is modern, sustainable, and inclusive. This new policy will have a special focus on the manufacturing of apparel and garment, technical textiles, man-made fiber products and exports. It will envisage positioning…
13 December, 2021
Industry
Sovereign Credit Rating Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the sovereign credit ratings and their significance News: Global rating agency Standard and Poor’s affirmed India’s sovereign rating at ‘BBB-’ with a stable outlook. Reason According to S&P, despite a notable deceleration in India’s economy in recent quarters, its structural growth outperformance remains intact. Real GDP growth is therefore likely to gradually recover toward longer-term trend rates over the next two to three years. It expects the economic growth rate to improve to…
14 February, 2020
Terminology
RBI to set up a new umbrella entity (NUE) Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the functions and eligibility criteria for setting up of NUEs; other guidelines issued by RBI News: The Reserve Bank of India (RBI) has proposed to set up a new pan-India new umbrella entity (NUE) or entities focussing on retail payment systems with a minimum paid-up capital of Rs 500 crore. Functions of the new entity The proposed entity will set up, manage and operate new payment systems especially in…
12 February, 2020
Terminology
GST rates to be revised yearly Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the move and its benefits; about inverted duty structure; about GST; GST Council News: GST Council, the federal indirect tax body, is set to make changes in tax rates of goods and services a yearly affair, moving away from frequent rate revisions to remove ‘uncertainty’ for businesses and the government. The reason behind the move Rate revision every three months brings in uncertainty. Frequent changes in GST rates have led to an…
10 February, 2020
Terminology
RBI steps in to revive economy Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the steps taken by the MPC and their implications; repo rate; CRR; MPC; CPI News: The Reserve Bank of India (RBI) stepped in to do the heavy lifting to revive the economy after the Union budget appeared to have few measures to spur credit growth and boost demand. About the RBI’s move The central bank introduced a direct incentive framework to boost credit growth, even as the six-member monetary policy…
07 February, 2020
Banking
India’s tariff policy Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about import tariff regime in India; amended proposed to it and its implications News: Some of the budget proposals have the potential to revive the import substitution regime of the pre-1991 liberalization era. The old regime, which sought to protect domestic industries, bred an uncompetitive manufacturing sector. Mint explains the pitfalls of protectionism. Tariffs in India vis-a-vis other countries At 11.7%, India’s weighted average tariff is much higher than that of South Korea, the US…
07 February, 2020
Budget
Declining Savings Rate Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment Prelims and Mains focus: on the declining savings rate in India and its causes Context: India has been witnessing a slowdown in consumption as well as savings for a while now, raising questions over the growth of real income in the economy. Why are savings so important? People can use their money for either consumption or savings. Savings are an important tool to help people smoothen out consumption. That is, they can use the savings for a rainy day.…
05 February, 2020
Terminology
Samurai Loan Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: about the Samurai loans raised by NTPC and its utility News: India’s largest power generator NTPC Ltd has raised a $750 million-worth term loan in Japanese yen, claiming it to be the “largest ever” Samurai loan raised by any Asian corporate. What are Samurai loans? Samurai loans allow non-Japanese firms to tap into the investment capital available in Japan and borrow funds in yen, which is among the currencies with the lowest interest…
04 February, 2020
Banking
Revenue Deficit grants for states Background The Post Devolution Revenue Deficit Grant is provided to the States under Article 275 of the Constitution. The grants are being released as per the recommendations of the Fifteenth Finance Commission in monthly instalments to meet the gap in the Revenue Accounts of the States post-devolution. The Commission has recommended these grants to 17 States during 2021-22. The eligibility of States to receive this grant and the quantum of the grant was decided by the Commission based on the gap between the assessment of revenue and expenditure of the State after taking into account the…
10 September, 2021
Fiscal Policy
Infrastructure Investment Trusts (InvITs) Syllabus subtopic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Government Budgeting Prelims and Mains focus: about the move to boost private InviTs and its benefits News: Union budget proposals are set to boost investments in the infrastructure space with tax exemptions for private infrastructure investment trusts (InvITs), which have emerged as an investment route of choice for large institutional investors. Background The Income Tax (I-T) Act provides for a taxation regime for business trusts. Definition of a business trust means a trust registered as an InvIT or a REIT under markets regulator Sebi…
03 February, 2020
Budget
National Logistics Policy Syllabus subtopic: Food Processing and Related Industries in India- Scope’ and Significance, Location, Upstream and Downstream Requirements, Supply Chain Management. Prelims and Mains focus: about the draft national logistics policy: benefits and challenges in implementation News: In her Union budget speech, the finance minister said the government will release the policy soon. Background India’s logistics sector has remained fragmented and unregulated, despite its centrality to economic growth. According to a logistics policy draft released by the commerce ministry in February 2019, the government will create a single point of reference for all logistics and…
03 February, 2020
Industry
Foreign Portfolio Investors ( FPIs) Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Government Budgeting. Prelims and Mains focus: About steps taken to boost private investment; associated terms and their meaning News: Finance minister took several measures to woo foreign portfolio investors (FPIs) after the misstep last year of imposing a surcharge on investors who were registered as a trust. What are the steps to be taken? withholding tax rate of 5% for FPIs investing in the bond market eliminating the dividend distribution tax (DDT) letting FPIs…
03 February, 2020
Terminology
Commission for Agricultural Costs and Price (CACP) Syllabus subtopic: Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices Prelims and Mains focus: about the open-ended procurement policy and the need to review it; about CACP and its mandate News: As the debate surrounding the review of open-ended procurement policy has started gaining momentum, following a recommendation by the Commission for Agricultural Costs and Price (CACP) to the Centre government, several farmers and farmers’ bodies in Punjab and Haryana have hinted that any move to stop or limit it would be opposed and resisted. Background…
03 February, 2020
Agriculture
Anti-dumping duty Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: on the move to abolish duties and its significance; on dumping News: The government’s decision to abolish anti-dumping duties on Purified Terephthalic Acid (PTA) will bring down manufacturing cost and potentially boost exports. Background The anti-dumping duties, first imposed around July 2014, levied additional charges between $27 to $160 per metric tonne for those wishing to import PTA. Data from the Commerce Ministry shows exports of some products made with PTA like polyester staple…
03 February, 2020
Terminology
Economic Survey on Privatisation Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the suggestions/observations made in the survey regarding the disinvestment of CPSEs News: The Economic Survey has aggressively pitched for divestment in public sector undertakings (PSUs) Observations and suggestions made in the survey The government can transfer its stake in listed CPSEs to a separate corporate entity. This entity would be managed by an independent board and would be mandated to divest the government stake in these CPSEs over a period of time.…
01 February, 2020
Economic Survey
Economic Survey on entrepreneurship Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the remarks made in the survey regarding entrepreneurship News: The Economic Survey said that India currently ranks third globally in the number of new firms created with about 1.24 lakh new entities coming up in 2018. Entrepreneurship scenario in India As per the Survey, new firm creation had gone up dramatically since 2014. While the number of new firms in the formal sector grew at a cumulative annual growth rate of…
01 February, 2020
Economic Survey
Economic Survey on India's economic growth Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the suggestions and observations made in the survey related to India’s economic growth News: The Economic Survey, authored by the Chief Economic Adviser (CEA), said that the government must use its strong mandate to deliver expeditiously on reforms which will enable the economy to strongly rebound in 2020-21. Background Earlier this month, the International Monetary Fund projected India’s growth to accelerate to 5.8% in 2020-21 from the estimated 4.8% in…
01 February, 2020
Economic Survey
20th Livestock Census Before reading the Livestock Census of India, Aspire IAS highly recommends you to read the topic of Livestock Sector of India so that you get an idea of the topic of UPSC GS Paper III Economics of Animal Rearing and Animal Husbandry in India which comes under Allied Agricultural Activities. Who conducts the Livestock Census? The Livestock Census has been conducted in the country periodically from 1919-20. Since then it has been conducted once every 5 years. It is released by the Ministry of Fisheries, Animal Husbandry and Dairying. It covers all domesticated animals and their headcounts.…
12 August, 2021
Allied agriculture activities
Trends in Credit Growth in India Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: on the credit growth trend in the banking sector and its implications News: India’s banking crisis, driven by high NPAs, has persisted for 6-7 years. During this time banks shifted to giving unsecured credit for personal loans, away from asset-backed secured lending. Many fear a bulk of these loans could be to subprime borrowers. Credit situation trend Personal loans offered by banks have increased over the years, peaking in the aftermath…
30 January, 2020
Banking
Indian Staffing Federation (ISF) Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the recommendations of the ISF; about labour reforms in India; about ISF News: Indian Staffing Federation (ISF) has asked the government to make labour codes a reality and get them operational from April this year. Present scenario India currently had 44 Central, 387 State labour laws, 67 Central and 1,333 State labour filings and 674 Central and 26,484 State labour compliances. Recommendations of ISF Simplification, rationalisation, and digitisation of labour laws should be…
29 January, 2020
Industry
Air India's privatization Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Prelims and Mains focus: about the details of the deal and its significance; about types of disinvestment News: The Union government invited bids for a 100% stake sale of Air India (AI) and transfer of management control along with its complete share in two subsidiaries — lowcost international carrier Air India Express and groundhandling arm AISATS. Background This is the second attempt…
28 January, 2020
Terminology
New Financial Resolution Authority on the anvil Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation. Prelims and Mains focus: About the proposed law and key changes to be brought by it; its advantages; about FRDI Bill; NBFCs News: The Finance Ministry is working on putting in place a comprehensive resolution framework for financial institutions that have a precarious financial positions. What is it for? It is to ensure that the failure…
27 January, 2020
Banking
New Industrial Policy Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Prelims and Mains focus: about the new industrial policy and its key objectives News: With the government aiming to finalise the new industrial policy within the current financial year, the Department for Promotion of Industry and Internal Trade (DPIIT) is seeking specific inputs from ministries and states on focus areas to boost manufacturing and private investment. Background Last week, the government organised an inter-ministerial workshop on 14 priority sectors that would need a fillip to boost manufacturing to…
22 January, 2020
Industry
Recession and Stagflation Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the two terms and their significance in determining the status of the economy News: The Indian economy is going through tough times with the advance estimates for the rate of growth for the real gross domestic product (GDP) for 2019-20 being pegged at 5% compared to 6.9% in 2018-19. What has been the trend so far? The GDP growth for the second quarter of 2019-20 came in at 4.5% against 7.1% in the second quarter…
22 January, 2020
Terminology
Oxfam India report: ‘Time to Care Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders Prelims and Mains focus: about the key highlights of the report regarding income disparity in India and recommendations News: Oxfam India’s report, “Time to care”, released in Davos, Switzerland, highlights the need for Asia’s third-largest economy to plug a growing rich-poor gap. Background The findings come at a time when the government is preparing to present the Union budget for FY21 seeking to…
21 January, 2020
welfare
India’s import substitution policy Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the import substitution policy and its benefits and how it impacts domestic industries and the overall growth of an economy Context: The recent wave of protectionism and the US-China trade war point to a need to re-evaluate India’s trade policy. The argument in favour of higher tariffs or import substitution is that ‘infant’ domestic industries need to be protected. The benefit of a low-tariff regime India’s GDP growth rate has largely gone…
21 January, 2020
Terminology
Debt Linked Savings Scheme (DLSS) Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Prelims and Mains focus: about DLSS and its advantages; AMFI; SEBI News: The Mutual funds sector has asked the government to allow ‘Debt Linked Savings Scheme’ (DLSS) on the lines of Equity Linked Savings Scheme (ELSS) in order to channelize long-term savings of retail investors and deepen the corporate bond market. Advantages of DLSS proposed by AMFI DLSS will help small investors participate in bond markets at low costs and at a lower risk…
17 January, 2020
Stock market
Current Account Deficit (CAD) Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the current account deficit and its significance; reasons for its contraction; balance of payments; OPEC News: Data released by the Reserve Bank of India (RBI) shows India’s current account deficit (CAD) reduced to 0.9% of GDP in the second quarter of 2019-20 from 2% in the first, primarily due to a lower trade deficit. Is it a reason to cheer? India’s CAD shrunk in the second quarter as imports contracted, while exports posted modest…
17 January, 2020
Terminology
RBI tightens debit, credit card usage norms Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Prelims and Mains focus: on the RBI’s move and its significance; frauds in transactions from credit/debit cards and attempts to address them News: Tightening the rules for credit and debit card issuance and use in the wake of rising frauds related to card transactions, the Reserve Bank of India (RBI) on Wednesday asked banks to allow only domestic card transactions at ATMs and point of sale (PoS) terminals in India at the time of…
16 January, 2020
Banking
National Anti-profiteering Authority (NAA) Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the malpractices in passing on GST rate cuts to the customers and the role played by NAA in curbing it; NAA: mission and functions News: A wave of orders is expected from the National Anti-profiteering Authority (NAA) in the next three months, with the Centre stepping up a goods and services tax (GST) compliance drive. Background This comes amid concern among policymakers that businesses have pocketed part of the Rs.1 trillion worth of GST…
15 January, 2020
Terminology
E-commerce market in India Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Prelims and Mains focus: about the e-commerce market in India and allegations on e-commerce retailers; about CCI and its role News: The Competition Commission of India (CCI) ordered a probe into Amazon and Flipkart for alleged deep discounting and unfair trade practices. The matter, once a toss between pricing and convenience, now has jobs and international relations at its heart. What are the online retailers accused of? Amazon and Flipkart are accused of…
15 January, 2020
Industry
Retail Inflation Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the spike in retail inflation; its causes and implications News: Retail inflation soared to a five-and-a-half-year high of 7.35% in December 2019, with the shortage of onions driving the surge. Background The last time retail inflation was this high was the 7.39% recorded in July 2014, just after PM Modi began his first term in office. What led to this spike in retail inflation? According to information released by the National Statistical Office on…
14 January, 2020
Terminology
Inflation targeting framework Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the inflation targeting framework, repo rate; CPI; MPC News: Last year, there were calls to review RBI’s inflation targeting framework. With the term of the current monetary policy committee ending in September, it’s time to review the performance of the rate-setting framework What are the terms of the policy framework? In 2016, the government amended the Reserve Bank of India Act (1934) and institutionalized a framework for a monetary policy committee (MPC),…
14 January, 2020
Banking
Marginal Cost Of Funds-based Lending Rate (MCLR) Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about MCLR and its significance; reasons for private banks not passing on the benefits of interest rate cuts to its customers compared to other banks News: Private banks were the slowest to pass on the benefits of falling interest rates to their customers in 2019 compared to their state-run and foreign rivals, Reserve Bank of India (RBI) data showed. Background The process of setting interest rates by banks is at…
13 January, 2020
Banking
National Strategy for Financial Inclusion (NSFI) , 2019-2024 Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the financial inclusion strategy and its significance; about PMJDY; PCR News: The Reserve Bank of India (RBI) has chalked out an ambitious strategy for financial inclusion till 2024. Why? Financial inclusion is increasingly being recognised as a key driver of economic growth and poverty alleviation the world over. Aim and objectives of the strategy It aims to strengthen the ecosystem for various modes of digital financial services…
11 January, 2020
Banking
Index of Industrial Production (IIP) Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the economic slowdown in the Indian economy and its recovery; about IIP, CSO News: India’s industrial production recovered from three months of contraction to expand by 1.8% in November, signalling an early but weak improvement in the economy. Background Manufacturing output had been shrinking for the past three months with a 2.1% contraction in October. It had seen a 0.7% contraction last November. What contributed to this recovery in…
11 January, 2020
Terminology
Road to Budget 2020 Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the economic slowdown and its impact on this year’s budget; measures to be taken to address it; About PMI Context: Finance Minister Nirmala Sitharaman will present her second budget at a time when the economy has hit rock bottom, with growth plummeting to a six-and-a-half-year low and dismal revenue growth, besides ongoing tensions in West Asia threatening to set oil prices soaring to unsustainable limits. Therefore, the FM will have to walk a…
10 January, 2020
Budget
The link between growth, demand and investment Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: the ongoing economic slowdown and its impact on India’s GDP; measures to be taken in the upcoming budget News: As per the government’s first advance estimate, gross domestic product (GDP) growth for FY20 is likely to be 5%— the lowest since the global financial crisis of 2008-09, when it fell to 3.1%. Why is GDP growth likely to fall to 5%? Private consumption expenditure, the money people spend on…
09 January, 2020
Budget
Govt. may cut spending to curb the deficit Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the govt’s move to cut expenditure and its implications on the economy; on fiscal deficit News: The government is likely to cut spending for the current fiscal by as much as Rs.2 trillion (Rs. 2 lakh crore) as it faces one of the biggest tax shortfalls in recent years. Background Economic growth slowed for six consecutive quarters to 4.5% in JulySeptember, despite a 135basispoint cut in interest rates by the…
08 January, 2020
Terminology
Statistics panel on economic data holds 1st meet Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about SCES: mandate and significance; About IIP News: The newly constituted Standing Committee on Economic Statistics (SCES), chaired by former Chief Statistician of India Pronab Sen, in its first meeting on Tuesday decided to form three sub-groups. What are the functions of the three sub-groups? One sub-group will look into the details of the Periodic Labour Force Survey and time use survey; the second group will look into the Index of…
08 January, 2020
Terminology
5% growth cloud over budget Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the recent economic slowdown in the Indian economy and the measures to be taken to overcome it in the upcoming budget News: India’s economy is expected to grow 5% in the current fiscal, the statistics ministry said on Tuesday, signalling what would be the slowest pace of annual growth since the current 2012-13 data series was introduced. Yet, the estimate, which is in line with the central bank’s latest projection made in…
08 January, 2020
Budget
Productivity has a big role in India’s $5 in GDP dream Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on India’s aim of becoming a $5 trillion economy; TFP and how it impacts the economy News: The slowdown has revived interest in India’s growth rate as it aspires to become a $5 trillion economy. This would require growing at 8% in real terms, along with a 0.7% rise in total factor productivity (TFP). What are the factors for economic growth? Economic growth is…
08 January, 2020
Terminology
ICAR to set up an innovation fund to help farmers Syllabus subtopic: e-technology in the aid of farmers. Prelims and Mains focus: About the new Fund to be set up and its significance; about ICAR: role and mandate News: A system will soon be put in place to scientifically validate, scale up and propagate the innovations of progressive farmers as the Indian Council of Agricultural Research (ICAR) is poised to set up a Farmers’ Innovation Fund (FIF). What is it about? As part of this system, an innovation centre would be established in New Delhi where the innovations…
07 January, 2020
Agriculture
Stressed urban cooperative banks to face PCA-like curbs Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the RBI’s move: reasons and merits; about PMC crisis; UCBs and their significance News: The Reserve Bank of India (RBI) has decided to impose restrictions on urban cooperative banks (UCBs) for deterioration of financial position, in line with the prompt corrective action (PCA) framework that is imposed on commercial banks. Context: The move comes in the wake of the recent crisis at the PMC Bank. What are…
07 January, 2020
Banking
How automation affects global FDI flows Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Prelims and Mains focus: on automation: its advantages and impact on the economy News: Across the world, the rise of automation has raised concerns over its impact on employment, especially in poor countries. Is automation a threat? New research, however, suggests that these fears may be overblown. While automation will disrupt the flow of capital from rich to poorer countries, the poorest countries could actually gain from automation. A World Bank study uses…
07 January, 2020
Terminology
The spectre of fresh NPAs looms over banks this year Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the NPA crisis in the banking sector: its causes and impact; evergreening of loans News: The Reserve Bank of India’s (RBI) Financial Stability Report (FSR) said the gross non-performing assets (GNPA) ratio of banks remained the same between March and September 2019 but could rise to 9.9% by September 2020. What has been the trend on NPAs? The recognition of NPAs of banks improved after…
07 January, 2020
Banking
Uptick in GST collections doesn’t suggest the economy is firing up Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the decisions made in GST Council regarding Input Tax Credit (ITC); trends in GST collections and its impact on fiscal deficit and the overall Indian economy News: Goods and services tax (GST) collections in December accelerated to cross the Rs. 1 trillion mark for the second consecutive month, up 8.9% year-on-year. This should normally suggest green shoots. However, changed GST Council norms for claiming input credit may have contributed…
06 January, 2020
Others
The govt is likely to find it hard to trim the fiscal deficit Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the problems faced by the govt. in GST collections and its impact on the fiscal deficit News: The budgeted fiscal deficit for 2019-20 stands at Rs. 7.04 trillion. However, the fiscal deficit for the period April-November is higher than this and stands at Rs. 8.08 trillion. Why has the fiscal deficit crossed Rs. 8 trillion? The fiscal deficit of Rs. 8.08 trillion…
06 January, 2020
Budget
Fears of surge in oil price, Govt looks outside Gulf Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: Escalating tensions in West Asia and its impact on Indian economy News: As oil prices surged after the killing of Iranian commander, General Qassem Soleimani, in a US drone strike in Baghdad, senior officials of the Finance Ministry and the Ministry of Petroleum and Natural Gas held a high-level meeting Friday to assess the impact and review contingency measures. Why? There’s a possibility of a disruption to oil supplies…
04 January, 2020
Others
RBI extends relaxation in NBFC norms till June Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the liquidity crisis in the NBFC sectors and efforts of RBI to improve the liquidity situation News: The Reserve Bank of India (RBI) has extended by six months existing relaxations for the securitization of assets by non-banking financial companies (NBFCs). Aim of the move The move is aimed at providing NBFCs with some more breathing space to repair their balance sheets by selling assets and improving liquidity. …
02 January, 2020
Banking
Relief for govt as GST collections remain above Rs.1 trillion mark Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About GST; reasons for delays in compensation to states News: Goods and services tax (GST) collections exceeded the Rs.1 trillion mark for the second straight month in December, bringing some relief to policymakers fighting to boost consumption and liquidity in a slowing economy. Central and state governments together collected Rs.1.03 trillion in December, 9% more than what was collected in the year earlier. With an improvement in…
02 January, 2020
Terminology
RBI’s Operation Twist may boost lending, growth Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the RBI’s Operation Twist; its need and impact News: Recently, the Reserve Bank of India (RBI) decided to undertake its own version of Operation Twist to bring down 10-year yields of government securities (G-Secs) and drive monetary transmission. Why is Operation Twist so important? Operation Twist is a move in which a central bank decides to simultaneously buy long-dated securities while selling short-term securities. The objective behind such…
02 January, 2020
Banking
The current account deficit narrows to 0.9% of GDP Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the Current Account Deficit (CAD) and the reasons for it narrowing down this fiscal: about External Commercial Borrowings (ECBs) News: India’s current account deficit (CAD) narrowed to 0.9% of GDP, or $6.3 billion, in the September 2019 quarter, on account of a lower trade deficit. It had stood at 2.9% of the gross domestic product (GDP), or $19 billion, in the corresponding quarter of 2018-19. On a sequential…
01 January, 2020
Terminology
Core sectors shrink for the fourth straight month Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the eight core sectors of the Indian Economy and their performance; Index of Industrial Production News: India’s eight infrastructure sectors shrank for the fourth straight month in November at 1.5%, though the magnitude of contraction slowed from 5.8% in the previous month. The eight core sectors contribute 40% to the Index of Industrial Production. What does it signify? The slowing of the pace of contraction is being interpreted…
01 January, 2020
Industry
FM unveils Rs.102 tn infra push to reignite growth Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the government’s move to boost infrastructure investments and the role of NIP; Greenfield and brownfield projects News: Finance minister Nirmala Sitharaman on Tuesday unveiled a plan to invest ? 102 trillion over five years to develop social and economic infrastructure to boost India’s sagging growth. How the projects will get implemented and the role of NIP The projects will be implemented under the National Infrastructure Pipeline (NIP) mechanism. The…
01 January, 2020
Others
A fiscal stimulus in the budget has to get balance right Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the ongoing economic slowdown what should the next year’s budget bring to contain it News: Finance minister Nirmala Sitharaman will present the Union budget in four weeks. The expectation, including in RBI’s monetary policy committee, is that the budget will roll out a fiscal stimulus to counter the growth slowdown. Will a fiscal stimulus boost GDP growth? The stimulus can be given either by…
31 December, 2019
Budget
GST overhaul next on agenda after budget Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the key issues to be discussed regarding the overhaul of GST; the composition scheme: eligibility and its merits News: The Narendra Modi administration and state governments will hold fresh negotiations to overhaul the goods and services tax (GST) after the Union budget is presented on 1 February, said a government official familiar with the development. Key issues to be discussed Finance ministers of central and state governments will discuss…
30 December, 2019
Budget
Fall in new FDs at state-run banks a trust deficit issue Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the key findings of the RBI report, about the trust deficit in public banking sector News: The Report on Trend and Progress of Banking in India released last week had some interesting data on the total amount of term deposits in public sector banks (PSBs). This data suggests people seem to be losing faith in investing their fresh savings in PSBs. How has the situation…
30 December, 2019
Banking
RBI directs large cooperative banks to report exposures above Rs. 5 crore Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about CRILC, Cooperative banks and how they are different from commercial banks News: The Reserve Bank on Friday directed large cooperative banks to report all exposures of Rs 5 crore and more to the Central Repository of Information on Large Credits (CRILC), a move aimed at early recognition of financial distress. Background Earlier in its bi-monthly monetary policy review this month, the RBI had announced…
28 December, 2019
Banking
Worst not over yet, RBI forecasts NPAs will rise Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the findings of RBI’s report and challenges mentioned by it in the economic revival process News: The Reserve Bank of India (RBI) on Friday cautioned that the asset quality of scheduled commercial banks (SCB) may worsen next year owing to changes in the macroeconomic scenario. Finacial Stability Report 2019: key findings In its latest Financial Stability Report, the central bank also warned that there remains an inherent…
28 December, 2019
Banking
As stress piles on, Indian lenders are on their way to large write-offs Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the problem of NPAs in the banking sector; types of NPAs; loan write off and waiver News: Indian banks have been facing a tough time getting back their monies from recalcitrant borrowers for long now. But their biggest hurdle in getting back dues is time. As time stretched, bad loans have only got worse and banks have had to keep increasing their provisions at…
27 December, 2019
Banking
NIRVIK Scheme Context: The Ministry of Commerce and Industry through ECGC, has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK to enhance loan availability and ease the lending process. About the Scheme: The main aim of introducing the scheme is to enhance the accessibility and affordability of credit for exporters. The decision is tipped to make the Indian exports competitive and make ECGC procedures exporter friendly, reduce insurance costs and ease of doing business. The insurance cover is expected to bring down the cost of credit due to capital relief, less provision requirement and liquidity due to…
31 October, 2019
Industry
The strong case for and against fiscal expansion Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About fiscal deficit and its significance in determining economic status of a country; types of deficits Context: Several economists have called for a proactive fiscal response to the current slowdown. However, others, such as Gita Gopinath and Arvind Subramanian, have advised against fiscal expansion. Why is the fiscal deficit so important? One of the reasons fiscal deficit is so important is that it gives us the extent of…
26 December, 2019
Terminology
Banks need to restart lending to industries to revive growth: RBI Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the RBI report and its significance; concerns raised by the report News: In its Report on Trend and Progress of Banking in India 2018-19, released on Tuesday, the central bank said banks need to restart lending to industries in order to stimulate the capex and investment cycle. The Reserve Bank of India (RBI) wants banks to resume lending to large industries instead of restricting themselves…
25 December, 2019
Banking
GST may need an overhaul to plug a revenue shortfall Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about GST and its significance; Why is GST still a contentious issue? News: Fifteenth Finance Commission (FFC) chairman N.K. Singh has said GST should be redrafted. Too many changes to GST rules and several items being exempted could be blamed for the Rs. 63,200 crore shortfall in compensation cess for FY20. What is the Finance Commission saying? According to data compiled by the Fifteenth Finance Commission,…
25 December, 2019
Terminology
PM chairs first meet of Cabinet Committee on Investment and Growth (CCIG) Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about CCIG and its significance for India’s economy News: The newly-formed Cabinet Committee on Investment and Growth (CCIG) held its first meeting on Monday as the government looks to boost spending to bring back a sputtering economy on track. Background The meeting came against the backdrop of gross domestic product growth slowing to a six-year low of 4.5 per cent in the July-September quarter as…
24 December, 2019
Industry
RBI shifts assets into US Treasury bonds as a share of deposits drop Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about Forex and its constituents; why RBI is keener on investing in US treasuries? Context: In September 2008, the year that saw the global financial crisis unfold, deposits with other central banks formed more than 57% of the Reserve Bank of India’s (RBI’s) foreign currency assets. US Treasury bonds and other securities had a lower 40% share of the forex kitty. Fast forward to September…
24 December, 2019
Banking
The puzzle of a market boom in economic gloom Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the recent economic slowdown in the Indian economy and why it is not affecting the stock market News: Benchmark indices Sensex and Nifty have touched fresh highs in the last couple of months despite fresh concerns about a rise in bad loans, risks in the banking and non-banking space and the economic slowdown. Why is Sensex peaking amid slowing growth? Reforms such as the goods and…
24 December, 2019
Stock market
WORLD BANK SUPPORTS ODISHA GOVERNMENT's CLIMATE RESILIENT AGRICULTURE CONTEXT: The Government of India, the Government of Odisha and the World Bank signed a US$165 million loan agreement to support smallholder farmers to strengthen the resilience of their production systems as well as diversify and improve the marketing of their produce, for increased income. ODISHA INTEGRATED IRRIGATION PROJECT FOR CLIMATE RESILIENT AGRICULTURE : It is a collaborative project between Government of India, Government of Odisha and the International Bank for Reconstruction and Development (IBRD). This project will be implemented in rural areas vulnerable to droughts and largely dependent on rainfed agriculture. The project will…
28 October, 2019
Agriculture
Maharatna, Navaratna and Miniratna Public Sector Undertakings (PSUs) Context: The government of India has accorded ‘Maharatna’ status to public sector undertakings (PSU’s) Hindustan Petroleum Corporation Limited (HPCL) and Power Grid Corporation. Impact: This will impart greater operational and financial autonomy thus enhancing powers to their Boards to take financial decisions. Boards of these PSUs can make equity investments to undertake financial joint ventures (JV) and wholly owned subsidiaries and undertake mergers and acquisitions (M&A) in India as well as abroad. This is however subjected to a ceiling of 15% of the net worth of concerned CPSE, limited to Rs 5,000 crore in one project. The…
27 October, 2019
Industry
World Bank’s ease of doing business ranking (India 63rd Rank) Context: India hiked 14 places to the 63rd position on the World Bank’s ease of doing business ranking India is among the top 10 performers on the list for the third time in a row New Zealand, Singapore and Hong Kong topped World Bank applauded the reform efforts undertaken by the India in its report India is the first country of its type to jump this year by 14 position. From 140 to 63: 140th position in 2014. 100th position in 2018 77th position in 2019 63rd now Reasons : ‘Make in India’…
25 October, 2019
Financial Market
REVIVAL PACKAGE FOR BSNL AND MTNL Context: Union Cabinet approves revival plan of Rs.70,000cr BSNL and MTNL. Revival plan : 1. Allotment of spectrum for 4G services for Rs.20,000cr 2. Debt restructuring by raising of bonds with sovereign guarantee. 3. Reducing employee costs through Voluntary Retirement Scheme. 4. Monetisation of assets. 5. In-principle approval of the merger of BSNL & MTNL. Crisis : For some time now, BSNL is trying hard to sustain itself in a competitive market and was willing to accept…
24 October, 2019
Industry
A FIX FOR GROWTH GAIN FROM FISCAL PAIN Context: With euphoria over the corporate tax cut fading, the government needs to address fundamental to the economy. Advantaged of corporate tax rate cuts: # Increase in FDI in the Indian economy # Solution to twin balance sheet problem # Attractive Indian market in the background of US-China trade wars # Stimulus to Make in India # Stock market going bullish # Incrase in private investment and increase in employment opportunities Demerits of corporate tax rate cuts : 1. Loss of around 1.5 lack crores to the Government. 2. Decrease in the…
22 October, 2019
Terminology
RBI wants the yield curve to dance to Operation Twist Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About Operation Twist and its significance News: The Reserve Bank of India (RBI) has put out a press release saying it wants to buy 10-year government securities worth Rs.10,000 crore and wants to sell 1-year government securities worth Rs.10,000 crore. This move has been labelled Operation Twist. How does Operation Twist get its name? The US Federal Reserve was the first central bank that attempted such…
23 December, 2019
Banking
Land area requirements norms for SEZs relaxed Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the recent amendment and its objective; on SEZs and its significance in boosting India’s economy News: The Ministry of Commerce and Industry on Friday amended the existing legal framework for special economic zones (SEZ) in India, in a move expected to make it easier to attract investments and boost exports. About the amendment The amendments simplify and relax the minimum land area required to set up an SEZ and their categorization.…
21 December, 2019
Others
Bond yields see the steepest fall in two months on Reserve Bank’s Operation Twist Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About Operation Twist and its significance; RBI: structure and functions News: The yield on the 10-year government bond fell 15 basis points on Friday, its steepest fall in two months, after the Reserve Bank of India (RBI) conducted a special open market operation—simultaneously buying long tenor bonds and selling short-tenor government bonds—dubbed ‘Operation Twist’ by the market. Background The concept was drawn from…
21 December, 2019
Banking
RBI plans ‘Operation Twist’ in desi avatar Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about Operation Twist and its significance; G-secs: types; Open market operations and their significance News: On Thursday, the RBI said it would be buying the 6.45% yielding notes maturing in 2029 — the benchmark bonds — and would be selling four papers maturing in 2020. The OMOs would be conducted on Monday. What exactly is it? The Reserve Bank of India (RBI) has commenced something that is akin to the famous “Operation…
20 December, 2019
Banking
Industry asks govt to boost private investments to kick-start growth Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the key takeaways from the meeting; suggestions given by various stakeholders and their significance News: Prominent industrialists on Thursday urged finance minister Nirmala Sitharaman to kick-start economic growth by encouraging private investment, improving the regulatory environment and increasing export competitiveness. Context: The finance minister is slated to present her second budget on 1 February amid expectations that she would announce fresh measures to reverse the current economic downturn…
20 December, 2019
Industry
India should be wary of middle-income trap Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about Middle Income Trap; why is India facing it; about GNI News: Many economists believe that countries that grow from low-income to middle-income levels tend to get stuck in a trap that prevents them from graduating to high-income status. India runs the risk of getting caught in that trap. What is the middle-income trap? World Bank defines a middle-income country as one with a gross national income (GNI) per…
20 December, 2019
Terminology
In a first, GST Council votes on tax proposal as consensus collapses Syllabus subtopic: Statutory, regulatory and various quasi-judicial bodies. Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the key decisions taken in the GST Council meeting and their significance; GST Council and its structure News: Goods and Services Tax (GST) Council, the federal indirect tax body, broke from its tradition of consensus-based decision-making to vote on a proposal…
19 December, 2019
welfare
Disinflation may be a concern for India in the new year Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on CPI and WPI, disinflation, stagflation and their role in determining economic performance News: Consumer Price Index (CPI) inflation for November was at 5.5%, while core CPI was at 3.26%. The CPI print, along with the low growth rate, suggests the possibility of sustained high inflation next year. What is disinflation and why is it bad? A general reduction in inflation is often termed disinflation. Central…
19 December, 2019
Terminology
Non-GST tax revenue is subdued in the current fiscal Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Prelims and Mains focus: key findings of the report; reasons for sluggish non-GST revenues and their impact on the fiscal health of the Indian economy; measures to be taken to address them News: Even as the government struggles to shore up the GST revenue, the collection of non-GST tax revenue too seems to be subdued at a…
18 December, 2019
Terminology
RBI to steadily tighten NBFC regulations Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Prelims focus: the difference between NBFCs and regular banks Mains focus: about the NBFC crisis and its implications; efforts of RBI to check further downfall in growth News: The Reserve Bank of India (RBI) is looking to steadily tighten regulation of non-banking financial companies (NBFCs) without causing any disruption to the current recovery of the sector, RBI governor Shaktikanta Das said. What changes are on the anvil? RBI has mandated that there should be…
18 December, 2019
Banking
NEFT round-the-clock set to boost digital payments Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the difference between various payment systems like NEFT, RTGS and IMPS and their use News: National electronic funds transfer (NEFT), a retail payment system operated by the Reserve Bank of India (RBI), became a 24x7 facility on 16 December. The facility will be available on all days of the year, including bank holidays. How did NEFT function before 16 December? Before 16 December, NEFT was available for customers from 8am to…
18 December, 2019
Banking
In the recovery game, Indian banks seem to lend it, leave it and forget it Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the bad loan crisis in the Indian banking system and the reasons for it; its implications and measures taken by the govt. News: Bank stocks have been among the top performers so far this year compared with the broad market trend. This exuberance comes from the fact that bad loans have fallen in absolute terms. How? Since dud assets have reduced, the propensity to…
17 December, 2019
Banking
Bank NPAs again stoke asset quality concerns Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and mains focus: above the NPA crisis and the role of auditors in reporting bad loans; ethical standards related to auditing News: India’s bad loan crisis seems far from over, with as many as 10 banks disclosing they had under-reported non-performing assets (NPAs) of close to 24,000 crore in the year ended 31 March. These banks are State Bank of India (SBI), Yes Bank, Punjab National Bank, Central Bank of India, UCO Bank, Bank of India,…
16 December, 2019
Banking
Indices soar on U.S.-China trade deal Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on various indices and how they perform during fluctuations in the market News: Tracking strong gains in the global markets, Indian benchmark indices rose significantly on Friday with the benchmark Sensex closing above the 41,000mark for the first time since November 28. The broader Nifty also managed to close above the psychological 12,000 mark. What made the indices jump? The news report on a possible trade deal between the U.S. and China and…
14 December, 2019
Stock market
Govt’s steps showing some results, says FM Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims focus: NBFC, Capital expenditure, Alternative Investment Funds Mains focus: about the recent slowdown in the economy and measures taken by the govt. to check it News: A series of measures taken by the government in the last few months to revive growth has started showing some results and the Centre will continue to support the industry and intervene as and when required, finance minister Nirmala Sitharaman said. Background: India’s economic downturn had deepened in the September quarter…
14 December, 2019
Terminology
IIP shrinks again, inflation accelerates Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims focus: Terms like inflation, stagflation, IIP and CPI Mains focus: the impact of the recent slowdown on various sectors of the economy and the efforts to check it News: Industrial activity contracted for the third consecutive month in October by 3.8%, driven by a fall in activity across sectors. Inflation and Contraction data Retail inflation had surged to a 40-month high of 5.54% in November, driven by rising food inflation. The Index of Industrial Production (IIP) had…
13 December, 2019
Terminology
Low risk a draw for investors in Bharat Bond ETF Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About ETFs, Bharat Bond ETF, advantages of ETFs over mutual funds News: The Bharat Bond exchange-traded fund (ETF), which has opened for subscription, is a new category of debt investment with the benefits of low-cost passive investing in a fixed maturity product that invests in a portfolio of AAA-rated bonds. What is the Bharat Bond ETF? It is an investment product that invests in a portfolio of AAA-rated…
13 December, 2019
Stock market
GST rate rationalisation should lead to gain in revenue, not inconvenience people: States Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation Prelims focus: about GST, GST Council Mains Focus: About various challenges in implementing GSt, Concerns raised by the states and govt’s efforts to address them. News: As talks of a hike in goods and services tax (GST) rates gain momentum, there is a sense of disquiet among states regarding any major tinkering of the slabs, especially the lower tax slab and exempted items. The Council meeting…
12 December, 2019
Others
The link between NPAs and frauds at govt-run banks Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: Why rising incidence of bank frauds is a cause of concern for RBI, the Centre and people with savings and deposits in these banks. News: The finance minister informed Parliament last month that state-run banks reported frauds of over 95,760 crore in April-September. Are frauds rising at state-owned banks? Public sector banks (PSBs) reported frauds of over 95,760 crore from April to September this year. According to…
12 December, 2019
Banking
A fiscal deficit may not matter much during a slowdown Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims focus: About fiscal deficit, revenue deficit, primary deficit, FRBM Act Mains focus: on the impact of fiscal deficit on inflation, and different steps taken by the govt. to check inflation Context: India’s economic slowdown has led to a severe revenue shortfall in direct and indirect taxes. As expenditure expands while revenue falls short of budgeted expectations, the fiscal deficit will rise. What exactly is a government deficit? Government finances are adequately…
11 December, 2019
Terminology
Slowdown in tax collection to hurt finances of govt Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The gross tax revenue collected by the central government during the first seven months of 2019-20 was? 10.52 trillion, up by just 1.22% from the tax collected during the same period in 2018-19. Taxing times The Centre, which collected? 10.52 trillion in the first seven months of FY20, is likely to fall short of its target of? 24.61 trillion is set for this fiscal. How will a lower tax revenue affect govt?…
09 December, 2019
Others
In a surprise, RBI keeps interest rates unchanged Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The RBI’s Monetary Policy Committee (MPC) unanimously decided to keep the key policy rate unchanged for the first time in 2019, as it worried about the rising inflation and felt that more time was needed for the impact of past rate cuts and more clarity on the fiscal policy and price fronts. Prelims and Mains focus: About Monetary Policy Committee, repo rate, MCLR, various interventions by the RBI to sustain growth Further action…
06 December, 2019
Banking
RBI lays down guidelines for payments banks’ SFB licence Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Payments banks willing to convert themselves into small finance banks (SFBs) can apply for such a licence only after five years of operations, the Reserve Bank of India (RBI) said in the final guidelines on on-tap licensing for SFBs. Prelims and Mains focus: About Payment banks, small finance banks and their significance in financial inclusion, about CRILC Eligibility Existing payments banks (PBs), which are controlled by residents and have completed five…
06 December, 2019
Banking
India’s forex reserves cross $450 billion for the first time Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The country’s foreign exchange reserves crossed the $450billion mark for the first time ever on the back of strong inflows which enabled the central bank to buy dollars from the market, thus checking any sharp appreciation of the rupee. Prelims and Mains focus: About quantitative easing, forex reserve, its composition and significance Background During the taper tantrums of 2013, (or the collective reactionary panic after the U.S. Federal Reserve said…
06 December, 2019
Terminology
Fiscal double whammy is putting India’s economy in a tight spot Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The government is facing a double whammy. The sharp deceleration in economic growth in nominal terms has shredded its fiscal math, and at the same time, the Centre cannot excuse itself from more spending. Prelims and Mains focus: on the recent economic slowdown, its implications and ways to address them. Background Gross domestic product (GDP) grew by 7% in nominal terms for the first half of FY20 and economists are worried…
05 December, 2019
Others
CCEA okays launch of India’s first debt exchange-traded fund Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The Cabinet Committee on Economic Affairs approved the launch of India’s first fixed income Exchange Traded Fund (ETF) comprising AAA-rated debt securities of state-owned companies. Prelims and Mains focus: About ETFs and their advantages, key differences between ETFs and mutual funds About the ETF launched Called Bharat Bond ETF, the fund will comprise a basket of bonds of companies including NHAI, NABARD, PFC and IRFC among others. The fund targets to raise…
05 December, 2019
Money Market
Govt. procured only 3% of pulses, and oilseeds proposed for this season Syllabus subtopic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing. News: Less than 3% of this season’s sanctioned amount of pulses and oilseeds have actually been procured so far under the oncehyped PMAASHA scheme, Agriculture Ministry data show. Prelims and Mains focus: About PM-AASHA, its significance and challenges in its implementation Background Arrivals of these crops began in October and will end by…
05 December, 2019
Agriculture
RBI likely to cut rates by 25bps as growth, credit offtake declines Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The reserve Bank of India (RBI) is expected to cut rates further by 25 basis points, after the 135-basis-point cut in its policy rate, at this week’s monetary policy review in the backdrop of the deepening slowdown and projections of a sub-5 per cent growth this fiscal year. Prelims and Mains focus: about the recent credit slowdown and the efforts to check it, performance of various sectors, about credit…
02 December, 2019
Terminology
GDP growth plunges to 4.5%, the lowest since 2012 Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Growth in the gross domestic product (GDP) in the July-September quarter hit a 25quarter low of 4.5%, the government announced on Friday. Prelims and Mains focus: about the recent economic slowdown in the Indian economy, challenges and ways to address them; GDP v/s GVA Context: The lowest GDP growth in six years and three months comes as Parliament has been holding daylong discussions on the economic slowdown, with Union Finance Minister…
30 November, 2019
Industry
India losing its trading edge to smaller nations Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: India’s exports are contracting. In the export of garments, countries such as Bangladesh and Vietnam are beating India. How have exports fared this fiscal? During the first seven months of FY20, both export and import growth fell in contrast with fairly high double-digit growth rates during the corresponding period of the previous fiscal. Exports contracted 2.2% and imports 8.8%. Significantly, even crude oil imports declined during April to October compared with those of preceding years…
28 November, 2019
Industry
Bad loans under Mudra Kishore jump 107% in six months Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The number and value of bad loan accounts in the Kishore category of the Pradhan Mantri Mudra Yojana (PMMY) for a dozen public sector banks including State Bank of India, Canara Bank and Bank of Baroda, have jumped 107 per cent and 71 per cent, respectively, as on September 30, 2019 compared with March 31, 2019. Prelims focus: about MUDRA scheme, NPA Mains focus: The rising NPA crisis and its impact on the overall…
28 November, 2019
Banking
Surge in small borrower defaults stokes worries Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Small borrowers, whose default rates have traditionally been among the lowest in India, are increasingly missing loan repayments as rising unemployment and stagnant-to-declining wages put pressure on finances of small companies as well as households. Prelims and Mains focus: About MUDRA scheme, current economic downturn and its impact on the SMEs and overall economy of India, IIP Issue: Indian banks, which hold the dubious distinction of having the world’s worst bad loan ratio, have…
27 November, 2019
Industry
Last nail in the Investment coffin Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The last remaining engine of India’s capital expenditure cycle, state government capex, is losing steam and could slow down further as state finances come under increasing strain, posing a risk to a capex revival in the country. Prelims and Mains focus: about capital expenditure; the recent economic slowdown and its impact on various sectors of Indian economy Background: Over the past two decades, state governments have led public investments in India. As private investments dried up…
26 November, 2019
Others
RBI push to de-risk banking sector chokes the flow of funds to large PSUs Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Lenders seek exemption from RBI to relax the large exposure framework requirements for state-run firms Prelims and Mains focus: on the recent disinvestments made by the govt and its impact on the credit flow and growth What is the issue? A Reserve Bank of India (RBI) regulation meant to reduce concentration risk for banks is gradually choking the flow of funds to some large public sector enterprises, especially the…
25 November, 2019
Banking
15th Finance Commission seeks say in GST Council amid Centre-states row Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Fifteenth Finance Commission (FFC) chairman N.K. Singh on Friday sought a leverage with the Goods and Services Tax (GST) Council, arguing that tax rate cuts and grant of exemptions decided solely by the council affect the FFC’s goal of optimizing revenue targets of the Centre and states. Prelims and Mains focus: on the Centre-states tussle related to GST and the role of the Finance Commission Context: The Centre and state governments…
23 November, 2019
Others
GDP slump will hit $5 trillion target, warns NITI Aayog Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The road to a $5 trillion economy by 2025 is beset with many speedbreakers, the NITI Aayog has warned the government. Prelims and Mains focus: about the recent economic slowdown and its implications on India’s roadmap for $5 trillion economy by 2025 Background: Finance Minister Nirmala Sitharaman, in her July 5 Budget presentation, had said the government would work to make India a $5 trillion economy by 2025. Reasons given by NITI…
23 November, 2019
Others
India climbs the EM League tables Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Buoyed by an improvement in financial sector indicators, India rose several notches to the second position among large emerging markets in October Prelims and mains focus: a current slowdown in the Indian economy, its impact on various sectors and overall GDP Context: Reversing months of under-performance, India rose several notches to finish second among key emerging markets (EM) in October, improving its relative attractiveness vis-a-vis other markets. Only the Philippines ranked ahead of India last month, the data…
21 November, 2019
Others
PMC Bank crisis Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: With the failure of the Punjab and Maharashtra Co-operative (PMC) Bank reigniting the debate on the low level of insurance for deposits held by customers in banks in India, the central government now plans to raise the cover. Legislation in this regard is likely in the ongoing Winter Session of Parliament. Prelims focus: About Deposit Insurance and its regulation Mains focus: The need for reforms in the banking sector About deposit insurance and its regulation in India Deposit insurance is providing insurance protection…
20 November, 2019
Banking
SEWA SERVICE TRAINS CONTEXT: Indian Railways has launched 10 ‘Sewa Service’ trains, to improve last-mile connectivity. These Sewa Service trains will connect small towns with their closest major cities and ease the hassle of travelling for daily passengers. These trains help divert short-distance traffic from roads to the railways. The railways introduced Sewa Service trains to ensure congestion-free roads and faster ease of movement for the public. MAIN POINTS: These trains will run on the “Hub and Spoke,” Model, thereby facilitating passengers to use these trains to reach the “Hub” for availing onward journey to other major stations. These measures…
17 October, 2019
welfare
INTELLECTUAL PROPERTY GUIDE FOR INDIA INTRODUCTION: Services Exports Promotion Council (SEPC), set up by the Ministry of Commerce & Industry, has brought out the India Intellectual Property (IP) Guide at Cannes in MIPCOM 2019 for the Media and Entertainment (M&E) industry. GUIDELINES: Catalogue of over 60 Indian IPs, popular in over 160 countries. Tries to break the narrative of only low-end work being done in India and to promote innovation. IP is the most important asset in the service sector like M&E Industry Intellectual Property (IP), especially in the innovation economy of today, is vital to a large number of SEPC's stakeholders.…
16 October, 2019
WTO
IMD World Talent Ranking- 2019 Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The 2019 World Talent Ranking was released. Prelims focus: About the rankings Mains focus: Issues and concerns highlighted by the report. About the rankings: It is released by the International Institute for Management Development (IMD). IMD is a business education school based in Switzerland. The ranking is based on the performance in three main categories — investment and development, appeal and readiness. Performance of countries: The top of the table is still led by European small and mid-size economies. These…
19 November, 2019
Others
ANOTHER GRIM REMINDER Context: The economic slowdown of India, whether due to cyclical Downturn or structural factors. Projections: IMF projects India's annual GDP at 6.1 %. World Bank projects India's annual GDP of 6% Moody's rating agency projects it as 5.8% Most of the multilateral Agencies call it a structural failure. Reasons for structural failure : 1.Weak financial sector due to high NPA and high share of NBFCs on banks total credit. NBFCs has borrowed 40% of bank's credit. It poses broad-based contagion risks. 2. Sharp slowdown in major economies such as the US and Eurozone has spill over effects…
16 October, 2019
Unemployment
ECONOMICS NOBEL FOR ABHIJIT AND TWO OTHERS Why was this award given ? For the experimental approach to alleviate Global poverty Who gives the award? Royal Swedish Academy of Sciences Name of the award : Sveriges Riksbank Prize in economic Sciences Awardees : a. Abhijit Banerjee b. Esther Duflo c. Michael Kremer Impact of this approach : a. To fight Global poverty b. Effective interventions for improving educational outcomes and child health. Approach : "Evidence-based approach"- based on the concept of clinical trials of the pharmaceutical industry. Technique used : Breaking down the big picture questions into smaller and…
15 October, 2019
welfare
Fall Armyworm (FAW) Syllabus subtopic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing. News: Proper precaution and timely management by the state agriculture department and awareness among farmers have succeeded in thwarting an attack by the Fall Armyworm (FAW) on maize crop in Odisha. Prelims and Mains focus: FAW- causes, effects, concerns and measures needed. Odisha produces over 7 lakh tonnes maize every year. The coverage of maize has increased to 2.40 lakh hectares in 2019-20 from 2.28 lakh ha a…
11 November, 2019
Agriculture
Sovereign Credit Ratings Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Global ratings agency Moody’s Investors Service has cut its outlook on the Government of India’s ratings to negative from stable, but affirmed the Baa2 foreign-currency and local-currency long-term issuer ratings. Prelims focus: About sovereign ratings Mains focus: What does the downgrade mean for India? Implications and what needs to be done? Moody’s also affirmed India’s Baa2 local-currency senior unsecured rating and its P-2 another short-term local-currency rating. Implications for India The decision to change the outlook to negative reflects increasing risks that economic…
08 November, 2019
Terminology
Inclusive growth and issues arising from it. Syllabus subtopic: Inclusive growth and issues arising from it. News: The Union Cabinet has approved the creation of an Alternative Investment Fund (AIF) of Rs. 25,000 crores to provide last-mile funding for stalled affordable and middle-income housing projects across the country. Prelims focus: About the newly announced fund, AIF- key features. Mains focus: Significance and the need for AIFs. Key features: The fund size will initially be Rs. 25,000 crores with the government providing Rs. 10,000 crores and the State Bank of India and the Life Insurance Corporation providing the balance The funds will be…
07 November, 2019
Money Market
NBFC Liquidity Framework Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. News: The Reserve Bank of India (RBI) has introduced a ‘liquidity management framework’ for Non-Banking Financial Companies (NBFCs). The new guidelines are applicable to all non-deposit-taking NBFCs with an asset size of 100 crore and above, systemically important Core Investment Companies and all deposit-taking NBFCs irrespective of their asset size. Prelims focus: on the new liquidity norms. Mains focus: requirement and significance of these norms. Why this was necessary? This has come following a liquidity crunch among some NBFCs in meeting their recent…
05 November, 2019
Banking
Global Microscope on Financial Inclusion Report Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The Economist Intelligence Unit has released the 2019 edition of the Global Microscope on Financial Inclusion report. Prelims focus: Key findings, about the report, about EIU Mains focus: Challenges for India and ways to address them. The 2019 edition of the Global Microscope report features 11 new gender focussed indicators that measure financial inclusion for both women as well as men. India- specific observations: India is among top nations with most conducive environment for financial inclusion in terms…
04 November, 2019
Banking
CMIE Report on unemployment Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment News: The Centre for Monitoring Indian Economy (CMIE) has released a report on Unemployment in India. Prelims focus: Key findings of the report. Mains focus: Concerns, reasons for rise in unemployment, challenges ahead and steps to be taken to address them. Key findings: India’s unemployment rate in October rose to 8.5%, the highest level since August 2016. Urban unemployment rate at 8.9%, is more than the rural unemployment rate of 8.3%. Highest unemployment rate in Tripura and Haryana, at more than 20%. Lowest in Tamil…
02 November, 2019
Unemployment
Core Sector Output falls in Sept. Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: Output of 8 core infrastructure industries contracted by 5.2% in September, indicating the severity of the economic slowdown. Prelims focus: about 8 core industries, their weightage in the Index of Industrial Production Mains focus: about the recent economic slowdown and its aftermath About Index Of Industrial Production (IIP) Index of Industrial Production (IIP) is an index which helps us understand the growth of various sectors in the Indian economy such as mining, electricity and manufacturing. IIP is a…
01 November, 2019
Industry
GS-III: A lodestar to steer the economy. News There is a anxiety all over about the economic slowdown in the country. While the government is still in denial mode data flowing uninterrupted that sector is starting at a seriously challenging situation. Data: Private consumption has contracted and is at an 18-quarter low of 3.1% Rural consumption is in a deep southward dive and is double the rate of the urban slowdown Credit off-take by micro and small industries remains stagnant; Net exports have shown little or no growth; GDP growth is at a six-year low with the first quarter of…
14 October, 2019
Others
GS-IIII: A tax policy that could work. Indian government desperate to raise more tax revenues. It missed its tax targets last fiscal year, (poor goods and services tax (GST) collections). Its declared budgetary target for the current year requires tax receipts to increase by around 25%, when the first quarter increase was only 6%. MNCs Tax Evasion: MNCs manage to avoid taxation in most countries, by shifting their declared costs and revenues through transfer pricing across subsidiaries, practices described as “base erosion and profit shifting” (BEPS). Digital companies, some of the largest of which make billions of dollars in profits…
14 October, 2019
Others
GS-III: What PMC means? News In at least three of the major financial sector scams in the last couple of months in India, featuring Punjab National Bank, IL&FS, Punjab and Maharashtra Cooperative Bank, apart from poor governance and fraudulent practices, a common thread has been a supervisory failure. Supervision The country’s leading financial sector regulator, RBI, has been responding only after the event. As in IL&FS, in the PMC case too, there appears to be culpability on the part of the management and the board of the bank. Bank’s loan exposure to a single firm, HDIL, alone constituted 73% of…
12 October, 2019
Banking
GS-II: Assam tea estates violating labour laws. News A report by Oxfam a confederation of independent charitable organisations focussing on the alleviation of global poverty has flagged violation of labour rights on the tea estates of Assam. Key Findings Extremely Low Wages: Workers are paid in a ‘blend’ of cash and in-kind benefits and services. Cash payments are supplemented by the provision of food rations and free housing, healthcare and primary education, as required by the Plantations Labour Act (PLA), 1951. Plantation owners describe wages in terms of the total value of both cash and in-kind benefits, claiming that this…
11 October, 2019
Agriculture
GS-III: Going down together. News The world must heed the IMF warning that everyone loses in a trade war. The IMF has some words of advice for global leaders on how to resuscitate the faltering global economy. Going down together: IMF new Managing Director Kristalina Georgevia singled out India along with Brazil as witnessing a pronounced growth slowdown as global growth experiences a synchronized downswing. The IMF expect growth to slowdown in nearly 90% of the world this year in contrast to two years ago when nearly 75% of the world witnessed accelerated growth. In fact global growth is expected…
11 October, 2019
Others
GS-II: States at Centre Context In recent times, economic discussion in India has focused largely on the stress on central government finances. But state government finances are also facing headwinds. State of states’ finance: States increasingly account for a larger share in general government spending. An RBI report on state finances notes that over the past two years, the overall size of state budgets has reduced. This may have “inadvertently deepened” the economic slowdown. States have pegged their revenues to grow at a slower pace largely due to lower tax devolution and grants. Revenue expenditure tends to be sticky in…
02 October, 2019
Banking
GS-I: Stirring up the truth about ZBNF News Zero Budget Natural Farming has no scientific validation and its inclusion into agricultural policy appears unwise. Most criticisms of modern agricultural practices are criticism of post-Liebig developments in agricultural science. What is Zero Budget Natural Farming? Zero Budget Natural farming (ZBNF) is said to be “do nothing farming”. It involves the application of nature’s principles in farming. It practises no-till, no chemical use in farming. Alongside, dispersal of clay seed balls to propagate plants is done. The key aspects integral to it and which require locally available materials are: Seeds treated with…
09 October, 2019
Agriculture
GS-I: Rethinking water management issues. News NITI Aayog’s strategy for water resources is a constitutional of failed policies of the past. NITI Aayog released its strategy for New India @75 which defined clear objectives for 2022-23 with an overview of 41 distinct areas. Effective strategic planning must satisfy three essential requirements. One acknowledges and analyses past failures. Two suggesr realistic and implementable goals and three stipulate who will do what and within what time frame. The ‘strategy’ for water fails on all three counts. No new vision: The document reiterates two failed ideas adopting an integrated river basin management approach…
09 October, 2019
Agriculture
GS-III: Bharat 22 ETF. News The Further Fund Offer 2 (FFO 2) of Bharat 22 Exchange-Traded Fund (ETF), which is part of the government’s divestment programme, will be open for subscription for investors. Bharat 22 Bharat 22 is an ETF that will track the performance of 22 stocks, which the government plans to disinvest. The ETF unit represents a slice of the fund, issued units are listed on exchanges for anyone to buy or sell at the quoted price. The B22 will span six sectors, such as basic materials, energy, finance, FMCG, industrials and utilities. Besides public sector banks, miners,…
03 October, 2019
Terminology
GS-III: The current crisis at PMC Bank serves the country a warning. News The crisis unfolding at PMC Bank is the tip of the iceberg of larger, unresolved problems in India’s banking sector. Roots of the cause: The roots of the crisis in the banking sector go back to the unresolved problem of non-performing assets (NPAs). These are magnified in the case of cooperative banks due to lax governance and a dicey business model. Other problems with the cooperative sector: Bad loans and poor governance. The business model offers depositors high-interest rates and lends money to borrowers of dubious credentials at low interest.…
04 October, 2019
Banking
GS-III: A road to economic revival runs through agriculture. News One of the world’ fastest growing economies,India is now facing sluggish growth with the RBI sharply cutting GDP growth forecast to 6.1% for 2019-2020 which is slowest in last 6 years. Effects on primary sectors: The ripples of the slowdown are gradually moving to the primary sectors which are already reeling under an unprecedented confluence of pressure. Real agriculture and allied GVA grew by 2.9% during 2011-12 to 2017-18 while National Agriculture Policy 2000 it should be around 4% to attain an overall economic growth of 8%. The current growth…
07 October, 2019
Agriculture
A welcome move, but it’s unlikely to spur demand News With the 25 basis points (bps) rate cut, RBI returned to the conventional wisdom of a rate change in multiples of 25bps. RBI statement MPC decided to continue with an accommodative stance as long as it is necessary to revive growth while ensuring that inflation remains within the target. RBI’s decision to increase the household income limit for borrowers of NBFCs and MFIs is welcome. It will enhance credit delivery to a larger customer base at the bottom of the pyramid. There is an attempt to boost the domestic forex…
05 October, 2019
Banking
GS-III: Trust deficit News It has been a nightmare of a week for thousands of customers of the Punjab and Maharashtra Co-operative Bank (PMC), who were told last Tuesday by the RBI that no more than Rs.1,000 could be withdrawn from their accounts for a period of 6 months. What are the implications of the decision? The PMC bank is a leading urban cooperative bank headquartered in Mumbai. The decision sent shock waves among thousands of its depositors. Panic-stricken customers rushed to bank’s branches across the state and were unable to withdraw more than Rs 1,000. The Bank has a…
30 September, 2019
Banking
Call money rates should be close to the policy rate, says the liquidity panel. GS-III: Call money rates should be close to the policy rate, says the liquidity panel. News An internal working group formed by the RBI to review the current liquidity management framework has suggested that the framework should be guided by the objective of maintaining the target rate. What is Call Money? The call money market is an essential part of the Indian Money Market, where the day-to-day surplus funds (mostly from banks) are traded. The money market is a market for short-term financial assets that are…
27 September, 2019
Money Market
GS-III: Institutions weakened, economy crippled. News The credibility of the RBI, the CSO and the NITI AAYOG has taken a beating in recent times due to political interference. Why are the ambitions of economic development practitioners and reformers so often disappointed? Institutions weakened: The slowdown in GDP growth rate has been dissected digressed and disowned by analysts, commentators and policymakers. However the diagnosis is far from complete and the growth engine is running out of fuel. Both the demand and supply side factors have been central in all the analyses but the crucial role of institutions in shaping the outcomes…
27 September, 2019
Terminology
GS-III: Making the grand India PSB mergers work. News The initial enthusiasm of market analysts to the bank merger announcement is giving way to wariness and scepticism. The procedure of Bank Merger An application for merger is submitted by the concerned banks to the Central Registrar of Cooperative Societies (CRCS). A copy of the application is also sent to Reserve Bank of India (RBI) along with valuation report and information relevant for consideration of the scheme of merger. The RBI then examines the scheme in respect to the interests of depositors and conveys its decision to the CRCS. What is…
24 September, 2019
Banking
GS-III: A Deep Cut. News Tax cuts have enthused Corporate India, but there is a fiscal problem to deal with. Finance Minster announced of deep cut of corporate taxes and roll back some market unfriendly proposals in the budget she presented in July. Corporate Tax Cut: Finance Minister Sitharaman’s announcement to cut corporate tax rates was a welcome surprise for the Indian economy which has been struggling with growth deceleration. The government has cut the corporate tax rate for domestic companies to 22 per cent (inclusive of all cesses and surcharges) for domestic companies from the existing 30 per cent.…
21 September, 2019
Terminology
GS-III: RBI report on Loan Waivers' impact News Recently the RBI shared the report of an Internal Working Group (IWG), which was set up in February to look at, among other things, the impact of farm loan waivers on state finances. Since 2014-15, many state governments have announced farm loan waivers. Highlights of the report The report has shown how to farm loan waivers dented state finances and urged governments both central and state to avoid resorting to farming loan waivers. This was done for a variety of reasons including relieving distressed farmers struggling with lower incomes in the wake…
16 September, 2019
Banking
GS-III: Why India’s growth figures are off the mark. News During the global financial crisis it was said that the experts were behind the curve. The IMF and financial sector experts continued to predict till October 2008 that the global economy would grow rather than shrink. Explaining the markdown: The economic growth rate (quarterly) has been sliding for the last ?ve quarters from 8% to 7% to 6.6% to 5.8% and now to 5%. The Economic Survey in July talked of a growth rate of 7% for the current year. The Reserve Bank of India (RBI), in its August policy statement, talked of a slowdown to 6.9%, from the 7% predicted in June and 7.2% predicted before that. The Asian Development Bank cut its growth forecast from 7.2% to 7% in April 2019. Similar is the case with the IMF which cut its forecast for the year from 7.3% to 7%.…
16 September, 2019
Terminology
GS-III: Registration of steel and iron imports. News In a bid to clamp down on the dumping of iron and steel imports and also the over and under-invoicing of these products the government has removed these items from the ; free category and has made it mandatory for importers to apply in advance for registration of their import. Import and Export of Iron & Steel Although India started exporting steel way back in 1964, exports were not regulated and depended largely on domestic surpluses. However, in the years following economic liberalisation, the export of steel recorded a quantum jump. Subsequently,…
10 September, 2019
Industry
GS-III: Privatizing public sector banks News Former RBI governor D. Subbarao raised the question of whether India needs public sector banks at all in this day and age. Reasons for privatization The country’s financial sector is now wide enough and deep enough to take care of financial intermediation without state support. Even after the bank nationalization of 1969, the state dominance of the sector has kept competition levels low. There was unnecessary micro-management by RBI, resulting in poor lending decisions and market distortions. Problem with interest rate benchmarking: Right now, banks are largely expected to do as they are told.…
09 September, 2019
Banking
GS-III: Putting the pedal to the medal News The automobile industry is cyclical. It is also a lead indicator for economic growth. And it has been experiencing signs of a slowdown. The decline began in the last quarter of the calendar year 2018 and intensified with the passage of every month in 2019. Background Though the industry goes through cycles of ups and downs the current slowdown is something to worry about seriously. The current downturn is like nothing that the industry has seen in a long, time in terms of depth, scale, and character. Commercial vehicles – Revision in…
06 September, 2019
Terminology
GS-III: An intensifying whimper that has begun to take a global toll News News show signs of another economic crisis and stock market decline. Background The economic situation around the world is rather grim. From synchronized global growth in the first half of 2017, we are now in the midst of a synchronized slowdown exacerbated by the US-China trade war. Merval Stock Market dropped 48% in a single day and the peso has fallen by 85% over the last three years. Many countries in Europe have been or have now fallen into negative interest rates, with Switzerland, Denmark, Sweden, and…
03 September, 2019
Stock market
GS-III: Mergers of Bank Context The Centre announced a mega amalgamation plan, the third in a row, that merged ten public sector banks into four larger entities, this series of mergers the number of state-owned banks is down to 12 from 27. About Merger: There are four new sets of mergers Punjab National Bank, Oriental Bank of Commerce and United Bank of India to merge to form the country’s second-largest lender. Canara Bank and Syndicate Bank to amalgamate; Union Bank of India to acquire Andhra Bank and Corporation Bank, and Indian Bank to merge with Allahabad Bank. The biggest merger…
02 September, 2019
Banking
GS-III: Spelling out the government’s RBI windfall News The transfer of Reserve Bank Of India surplus to the government in a routine manner. The government was, it must be noted, acting on the recommendations of a committee chaired by former RBI governor Bimal Jalan, on capital transfer. Some economists have welcomed the move as it will help the government counter the shortfall in revenue and tax collection. Since inflationary pressure is low, economists believe that the move will not have a negative impact in the long run. Another group of economists which includes the likes of Raghuram Rajan and former…
31 August, 2019
Banking
GS-III: Revised FDI Norms News Recently, the Union Cabinet has approved the proposal for the review of Foreign Direct Investment in various sectors. This will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth. Revised Norms 100% FDI under automatic route is permitted for the sale of coal, for coal mining activities including associated processing infrastructure. The government has allowed 100% FDI through the automatic route for contract manufacturing. It will augment the Make in India initiative and will attract global companies in India looking to establish alternative manufacturing hubs. Easing…
30 August, 2019
Terminology
GS-III: RBI Surplus Context The RBI Board approved a surplus transfer of Rs 1,76,051 crore to the central government. How does a central bank like the RBI make profits? The RBI is a “full service” central bank— not only is it mandated to keep inflation or prices in check, it is also supposed to manage the borrowings of the Government of India and of state governments; supervise or regulate banks and non-banking finance companies, and manage the currency and payment systems. While carrying out these functions or operations, it makes profits. Typically, the central bank’s income comes from the returns…
28 August, 2019
Banking
GS-III: It’s time for a direct tax regime that’s growth-focused and fair. CONTEXT India overhauled its indirect tax system with the introduction of goods and services tax (GST). It now has to do the same with the direct tax system. Background The task force on the direct tax code (DTC) submitted its final report to the finance minister. The proposed new code will replace the Income-tax Act of 1961. DTC – what it has to say about direct taxes The report says that the direct tax system is designed to improve the efficiency, equity, and effectiveness of the tax system.…
28 August, 2019
Stock market
GS-III: Making CSR work On Companies Act amendments Context Amendments to the relevant sections of the Companies Act in the last session of Parliament have now made non-compliance with CSR norms a jailable offence for key officers of the company, apart from hefty fines up to 25 lakh on the company and 5 lakh on the officer in default. Corporate Social Responsibility (CSR): Corporate Social Responsibility is defined as the voluntary integration of a company’s social and ecological concerns into its business activities and its relationships with its stakeholders. Being socially responsible means not only fully satisfying the applicable legal…
17 August, 2019
Terminology
Gs- III: From Plate to Plough: In the shade of solar trees. Context The recent statement of our Finance Minister about transforming Annadata (farmer)into an Urjadata (producer of solar power) in her maiden Budget speech. How Help farmers produce solar power on their lands Farmers occupy the largest chunks of land in this country. Annadata Becoming an Urjadata: The recent statement of Finance Minister on doubling farmer’s income is the idea of making the annadata an urjadata. This model will be much more inclusive and can help augment their incomes significantly. The two variants of this are: Replacing all pump…
05 August, 2019
Agriculture
GS-III: Special Data Dissemination Standards (SDDS) of IMF Context India failed to comply with multiple requirements prescribed in the Special Data Dissemination Standard (SDDS) mandatory for all IMF members. Special Data Dissemination Standard The Special Data Dissemination Standard (SDDS) was established by the IMF for member countries that have or that might seek access to international capital markets, to guide them in providing their economic and financial data to the public. Although subscription is voluntary, the subscribing member needs to be committed to observing the standard and provide information about its data and data dissemination practices (metadata). The metadata are…
26 August, 2019
Terminology
GS-III: Nirmala Sitharaman’s stimulus plan falls short of vision Context Indian economy is slowing down. In this context, the Finance Minister offered a stimulus package. What does it offer? It rolled back the tax surcharge on overseas investors imposed in the budget. The angel tax on startups has been removed. The government will buy more cars for its fleet. Injection of 700 billion rupees of additional capital into state-run banks.Analysis It gives global banks a break on derivatives they trade in India while denying the same tax benefit to local hedge funds. This can be called unfair discrimination against a…
26 August, 2019
Terminology
GS-III: Government responds to the downturn with steps to boost growth Context The announcements come at a time when the perception that the slowdown has been aggravating in recent weeks and spreading across sectors. Finance Minister Nirmala Sitharaman announced a partial rollback of the enhanced surcharge on foreign portfolio investors (FPI) levied in the Budget and indicated a review of the surcharge levy for high net worth individuals as well. Announcements Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn. The CSR violation would be treated as a civil offence, and not…
24 August, 2019
Financial Market
GS-III: What ails the existing microcredit model Context Microcredit has gained much traction as a tool for ensuring the welfare of the most impoverished in society and boosting development alongside. What is Microcredit? Microcredit refers to the granting of very small loans to impoverished borrowers, with the aim of enabling the borrowers to use that capital to become self-employed and strengthen their businesses. Loans given as microcredit are often given to people who may lack collateral, and credit history. Microcredit agreements frequently do not require any sort of collateral, and sometimes may not even involve a written agreement, as many…
21 August, 2019
Terminology
GS-III: RBI issues final norms for regulatory box News The Reserve Bank of India (RBI) has issued the final framework for the regulatory sandbox in order to enable innovations in financial technology. Regulatory Sandbox A regulatory sandbox usually refers to live testing of new products or services in a controlled regulatory environment for which regulators may permit certain regulatory relaxations for the limited purpose of the testing. The objective of the sandbox is to foster responsible innovation in financial services, promote efficiency and bring benefit to consumers. It provides a secure environment for fintech firms to experiment with products under…
20 August, 2019
Banking
GS-III: Negative rate policy Context A negative rate policy once considered only for economies with chronically low inflation such as Europe and Japan is becoming a more attractive option for some other central banks to counter unwelcome rises in their currencies. Why have some central banks adopted negative rates? To battle the global financial crisis triggered by the collapse of Lehman Brothers in 2008, many central banks cut interest rates near zero. A decade later, interest rates remain low in most countries due to subdued economic growth. With little room to cut rates further, some major central banks have resorted to…
19 August, 2019
Others
Rupee Matters CONTEXT Over the past few years, there has been a concern over the sharp rise in offshore rupee trading volumes. Facts Data from the Bank of International Settlements pegs daily offshore rupee trading at around $16 billion in 2016, almost equal to onshore trading. Recent data from the Bank of England pegs offshore rupee trades at $23 billion in 2018. Challenges Which forces determine the rupee’s value? What is the ability of the central bank to ensure “currency stability”? Offshore markets allow participants to trade in non-convertible currency. These markets have evolved for currencies where restrictions are imposed…
12 August, 2019
Money Market
GS-III: India’s economic mobility and its impact on inequality Context There has been a phenomenal rise in economic inequality in India. It is important to measure the extent of economic mobility in India, which reflects the number of people moving up and down the economic ladder over time. Facts A 2018 Oxfam study reports a significant increase in the consumption Gini index in both rural and urban areas from 1993-94 to 2011-12. According to the Global Wealth Report (GWR) 2017 by the Credit Suisse Research Institute, between 2002 and 2012, the share of the bottom 50% of the population in total wealth…
13 August, 2019
Others
GS-III: Allocation are Keys Context The budget must focus on the priority areas for the budget allocations. It is expected to provide funds and an assurance that the allocations would be rule-based. Rural distress needs to be allocated to funds. Drinking water Improving the efficiency of existing irrigation systems Rural finance including temporary waiver of loan repayments : Job creation It will depend on the revival of industrial production, continuing growth of exports and an agricultural revival. Most policies have a lag of around four to six months. In the short run, the money will be needed for the MGNREGA.…
15 August, 2019
Budget
GS-III: Fiscal wheels must also roll in order to make monetary policy effective Context Through four successive reductions in this year, RBI has reduced the repo rate by 110 basis points to 5.4%. Status of the rate cut The economy has been slow to respond to these incremental monetary stimuli. Quarterly growth data show a continuing slowdown, mainly driven by sluggish demand, due to both external and domestic factors. There is substantial excess capacity in the manufacturing sector. With unutilized capacity, temporary and casual employees are being laid off and wage hikes are being postponed, reducing levels of aggregate disposable…
06 August, 2019
Financial Market
GS-III: Borrow abroad and profit Context The government is planning to issue 10-year bonds denominated in foreign currency. Why it is a good idea Such borrowing would be cheaper because a dollar or yen interest rates are lower than rupee interest rates. Our debt to GDP ratio is not very high, the exchange rate is stable, and foreign exchange reserves are high. So foreign borrowing, if it's long-term, is not a problem. If foreign bond issuance was accompanied by a move towards greater capital account convertibility then it may be worth pursuing. A country pays a country premium for borrowing…
06 August, 2019
Budget
GS-III: Regulatory Sandbox News The Insurance Regulatory and Development Authority of India (IRDAI) will soon allow the use of a regulatory sandbox (RS) to promote new, innovative products and processes in the industry. Regulatory Sandbox A sandbox approach provides a secure environment for fintech firms to experiment with products under supervision of a regulator. It is an infrastructure that helps fintech players live test their products or solutions, before getting the necessary regulatory approvals for a mass launch, saving start-ups time and cost. The concept of a regulatory sandbox or innovation hub for fintech firms was mooted by a committee…
01 August, 2019
Terminology
GS-III: Governing India through fiscal math Context While it is important for a government to pursue a sound economic policy, including management of the public finances, it is yet another matter to make a fetish of any one aspect of it. The latter appears to govern this government’s approach to policy when the fiscal deficit is given pride of place in its self-assessment. Thread of fiscal discipline Soon after the Budget for 2019-20 was presented, one of the Finance Minister’s predecessors remarked that “fiscal prudence rewards economies”. It figured in the most recent Economic Survey, and its anticipated magnitude for 2019-20…
02 August, 2019
Financial Market
Copyright 2023 CLT TECHNOLOGIES AND EDU-PUBLISHERS PRIVATE LIMITED. All rights reserved.
24 × 7 Support : 8287714422
Whatsapp : 8010068998
Email Us: query@aspireias.com
