[Article]Is Indian Economy Turning Around?

For a few months now, the Indian economy appears to be on a recovery path. At least there are enough indications to that. Foremost is the performance of various sectors of the economy.

Industrial output has been gathering some pace since August. It rose by 2.7 % in August this year compared to a fall of 0.2 % in July. But the hike has been less if we compare it with August last year when it stood at 3.4%. The manufacturing sector grew 2.9% in August but again less than 3.9 % growth it recorded in the same month last year. The mining sector recorded an increase by 2.9% in August when it actually declined by 5.5 % in the same month last year. The growth recorded by the manufacturing sector is significant since it accounts for about 76 % of the index of industrial production.

Janani Shishu Suraksha Karyakram

Reducing the maternal and infant mortality rate is the key goal feature of the Reproductive and Child Health Programme under the National Rural Health Mission. Several initiatives have been launched by the Ministry of Health & Family Welfare under the Mission including Janani Suraksha Yojana, a key intervention that has resulted in phenomenal growth in institutional deliveries with more than one crore women beneficiaries annually. JSY was launched to promote institutional deliveries so that skilled attendance at birth is made available and mothers and new born babies can be saved from pregnancy related complications and deaths.

Gujarat tops in private sector investments across India

As per an analysis titled ‘Composition of Outstanding Investments Across States,’ carried out by Assocham, Gujarat has the biggest share of 12.5% in total outstanding private sector investments ((including both domestic and foreign private sectors) across India as of June 2012. As per the analysis top 4 states are:

• Gujarat (12.5%)
• Odisha (10.7%)
• Maharashtra (8.9%)
• Andhra Pradesh (8%)

Trade b/w India, China expected to touch $100 bn by 2015

India is expected to achieve the $100-billion bilateral trade target set with China by 2015. The bilateral trade b/w the two nations was recorded at $75.45 billion in 2011-12. While India’s exports were at $17.90 billion, imports stood at $57.55 billion brought India a trade deficit of $39.65 billion and favored China.

PM constitutes National Committee on Direct Cash Transfers

The Prime Minister has constituted a coordination committee called the National Committee on Direct Cash Transfers, as a mechanism to coordinate action for the introduction of direct cash transfers to individuals under the various government schemes and programmes.

Backward Regions Grant Fund (BRGF)

The Cabinet Committee on Economic Affairs today approved the proposal for :-

(i) continuing the Special Plan for Bihar in 2012-13 with an allocation of Rs.1500 crore, based on the enhanced level of cost of Rs.9985.54 crore of all existing projects, revised cost of existing projects, and the cost of new projects, if any, that may be approved by the Empowered Committee, 

National Electronic Policy , 2012

The Union Cabinet today approved the National Policy on Electronics 2012. The draft National Policy on Electronics was released for public consultation and it has now been finalized based on comments from various stakeholders. 

13TH Finance Commission

The Finance Commission is constituted by the President under Article 280 of the Constitution. Its main work is to give recommendations on distribution of central tax revenues between the Union and the States.

Vaidyanathan committee report

 Agriculture plays a very pivotal role in the Indian economy providing employment to half of the population and contributing one-fifth to the GDP. The volatility in this sector has been one of the prime concern of the policy makers. To arrest this volatility and raise the livelihood security of the nation various commissions had been set up in the past. For instance, National Commission On Farmers. Recently the government has set up an expert committee under eminent economist Prof. A Vaidyanathan to look into the issues of raising crop yield through better estimation. The recommendations of the committee are given below.

New Telecom Policy

Department of Telecommunications (DOT), Government of India jointly with Federation of Indian Chambers of Commerce and Industry (FICCI) is organizing INDIA TELECOM 2010-An International Conference & Exhibition at New Delhi. The theme of the event is 'Broadband for all'. India Telecom 2010 is the fifth consecutive year of the leading international conference and exhibition. Since 2006, India Telecom has been the forum for promoting enterprise, learning and inspiring innovation in telecom sector.
India Telecom 2010 will maintain its focus on cutting-edge technologies and their commercial implications, as well as on feature fast-growing technological sectors. 

National Mission on Food Processing

The continuing food inflation in the country has brought in sharp focus “supply side” constraints, especially in case of perishables. There is thus an increasing realization about the need to increase agricultural production in the country and a strategy to usher in second green revolution is under preparation. At the same time, it needs to be understood that it will not be enough only to produce more, but it is equally important to save each grain produced by reducing wastages. This would improve farmers’ income and economic viability of agricultural operations.

National policy for Farmers

The National Policy for farmers has defined the term “FARMER” as a person actively engaged in the economic and/or livelihood activity of growing crops and producing other primary agricultural commodities. It also includes all agricultural operational holders, cultivators, agricultural labourers, sharecroppers, tenants, poultry and livestock rearers, fish-growers, beekeepers, gardeners, pastoralists, non-corporate planters and planting labourers, as well as persons engaged in various farming related occupations such as sericulture, vermiculture, and agro-forestry. Apart from this, the term also includes tribal families/persons engaged in shifting cultivation and in the collection, use and sale of minor and non-timber forest produce.

National Mission for Sustainable Agriculture

Agriculture plays a crucial role in ensuring food security while also accounting for a significant share of India’s Gross Domestic Product (GDP). It engages almost two-thirds of the workforce in gainful employment. Several industries such as sugar, textiles, jute, food and milk processing etc. depend on agricultural production for their requirement of raw materials.

NATIONAL WATER POLICY 2012

Water is a natural resource, fundamental to life, livelihood, food security and sustainable development. It is also a scarce resource. India has more than 17 percent of the world’s population, but has only 4% of world’s renewable water resources with 2.6% of world’s land area. There are further limits on utilizable quantities of water owing to uneven distribution over time and space. Precipitation is confined to only about three or four months in a year and varies from 100 mm in the western parts of Rajasthan to over 10000 mm at Cherrapunji in Meghalaya. Rivers and underground aquifers often cut across state boundaries.  Water, as a resource is one and indivisible: rainfall, river waters, surface ponds and lakes and ground water are all part of one system.

Maritime Agenda 2020

India is growing with great speed and would be leading economies globally soon. According to Goldman Sachs economists, India would be one of the BRIC economies (Brazil, Russia, India and China) that could become a much larger force globally in coming future. Maritime industry is a backbone of the country's EXIM trade. Therefore, it would not be wrong if said that development of shipping and ports industries contribute to the growth of the nation.

Gadgil formula

The Gadgil formula was formulated with the formulation of the fourth five year plan for the distribution of plan transfers amongst the states. It was named after the then deputy chairman of the Planning Commission Dr. D R Gadgil. The central assistance provided for in the first three plans and annual plans of 1966-1969 lacked objectivity in its formulation and did not lead to equal and balanced growth in the states.

Gadgil formula  was evolved in 1969 for determining the allocation of central assistance for state plans in India. Gadgil formula was adopted for distribution of plan assistance during Fourth and Fifth Five Year Plans The National Development  Council  (NDC) approved the following formula:

NIB under Finance Ministry opposed

The war over the creation of a National Investment Board (NIB), meant for one-stop clearance to all the infrastructure projects above Rs.1,000 crore, continues to simmer with the Power Ministry now opposing putting the NIB under the Finance Ministry.

In a note sent in response to the creation of the NIB, the Power Ministry has asserted that it wants the NIB to be placed under the Prime Ministers Office (PMO) and not under the Department of Finance Affairs of the Finance Ministry as originally proposed. In addition, it has said NIB should not be confined to sanctioning and monitoring projects but should also ensure them various clearances.

NATIONALRURAL LIVELIHOOD MISSION

The National Rural Livelihood Mission (NRLM) was established in June 2010 by the Government of India, to be implemented in all States of the country, to establish efficient and sustainable institutions of the rural poor that enable them to increase household income through livelihood enhancements and improved access to financial and selected public services. NRLM have special focus on the poorest households, who are currently dependant on MGNREGA. These families will be supported to broaden their livelihoods through assets and skill acquisition. This will enhance the quality of their livelihoods significantly.

Swarna Jayanti Shahari Rozgar Yojana

With a view to provide gainful employment to the urban unemployed and underemployed through encouraging the setting up of self-employment ventures or provision of wage employment, a new urban poverty alleviation programme, namely, Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was launched by the Government of India on 01.12.1997.

NIESBUD Signs MoU for Promoting E-Learning Initiative

The National Institute for Entrepreneurship and Small Business Development, an organization of the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, engaged in training, research and other interventions with the objective of promotion of entrepreneurship and development of small and micro enterprises in the country, has joined hands with the Sun Online Learning India Pvt. Ltd. for promoting the E-learning initiative (www. careerstrokes.com) developed by the Company for career planning and career enhancement.

 

FDI in Multi-Brand Retail: Advantage All

The Government of India opened the floodgates for foreign direct investment (FDI) in multi-brand retail trading, on September 14, 2012; thereby boosting the investors’ confidence towards the Indian market and economy. The government, thus, decided to give green signal to FDI up to 51 per cent, under the government route, in multi-brand retail trading. It was clearly stated that at least 50 per cent of the total FDI shall be invested in backend infrastructure within three years of the first tranche of FDI. The government also specifically mentioned that at least 30 per cent of the procurement of manufactured or processed products shall be directed from ‘small industries’ which have a total investment in plant and machinery, not exceeding USD 1 million. The government also allayed the state’s fears by clarifying that it is an enabling policy, therefore, leaving it up to the states to take their own decisions with regard to allowing FDI in multi-brand retail trading in those states.

Panel to study role of cooperative banks

An expert committee, headed by Prakash Bakshi, Chairman, National Bank for Agriculture and Rural Development (NABARD), has been constituted to assess the role played by the State and district central cooperative banks in fulfilling the requirement of agriculture credit, the primary purpose for which they were set up.

In a statement, NABARD said the eight-member committee had been constituted to examine the functioning of the three-tier short-term cooperative credit structure (STCCS).

Reserve Bank of India, as per the Annual Policy Statement announcement for 2012-13, has constituted the committee to make an in-depth analysis of the STCCS and to examine various alternatives with a view to reducing the cost of credit and for enhancing agriculture credit. It would also study the feasibility of having appropriate structure of the existing STCCS.

The committee would identify cooperative banks that may not be sustainable in the long-term even if some of them have met the diluted licensing criteria for the time being. It would suggest mechanism for consolidation by way of amalgamation, merger, takeover and liquidation. The panel would also suggest pro-active measures that need to be taken in this direction by the cooperative banks themselves, the Central and State governments, RBI and NABARD.

The committee has invited comments and suggestions on these issues, which may be e-mailed to rbicomm@nabard.org This email address is being protected from spambots. You need JavaScript enabled to view it. by October 25, the statement said.

National Highways Development Project

The National Highways Development Project is a project to upgrade, rehabilitate and widen major highways in India to a higher standard. The project was implemented in 1998. "National Highways" account for only about 2% of the total length of roads, but carry about 40% of the total traffic across the length and breadth of the country. This project is managed by the National Highways Authority of India under the Ministry of Road, Transport and Highways.

UNDP Millennium Development Goals (MDGS) & Scenario of india

UNDP

The United Nations Development Programme (UNDP) is the United Nations’ global development network.Headquartered in New York City, the UNDP is funded entirely by voluntary contributions from member nations. The organization has country offices in 177 countries, where it works with local governments to meet development challenges and develop local capacity. Additionally, the UNDP works internationally to help countries achieve the Millennium Development Goals (MDGs). UNDP provides expert advice, training, and grant support to developing countries, with increasing emphasis on assistance to the least developed countries. To accomplish the MDGs and encourage global development, UNDP focuses on poverty reduction, HIV/AIDS, democratic governance, energy and environment, social development, and crisis prevention and recovery. UNDP also encourages the protection of human rights and the empowerment of women in all of its programs.

Parthasarathy shome committee – GAAR

The Government had constituted an Expert Committee headed by Dr. Parthasarathi Shome on GAAR on July 13, 2012. The Committee has now submitted its draft report, which has been placed in public domain on September 1, 2012 for seeking suggestions/opinion of the various stakeholders.
The Government had earlier on August 6, 2012 also requested the Expert Committee to examine the applicability of the amendment on taxation of non-resident transfer of assets where the underlying asset is in India, in the context of Foreign Institutional Investors (FIIs) operating in India purely for portfolio investment. It has now been decided to expand the scope of the Terms of Reference of the Committee to include all non-resident tax payers instead of only FIIs.

National Manufacturing Policy & NIMZ

National Manufacturing Policy

The Government of India has announced a national manufacturing policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. It also seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value addition in manufacturing has received special focus.

Details

Government of India decided to bring out the National Manufacturing Policy to bring about a quantitative and qualitative change with the following six objectives:

1. Increase manufacturing sector growth to 12-14% over the medium term to make it the engine of growth for the economy. The 2 to 4 % differential over the medium term growth rate of the overall economy will enable manufacturing to contribute at least 25% of the National GDP by 2022.
2. Increase the rate of job creation in manufacturing to create 100 million additional jobs by 2022.
3. Creation of appropriate skill sets among the rural migrant and urban poor to make growth inclusive.
4. Increase domestic value addition and technological depth in manufacturing.
5. Enhance global competitiveness of Indian manufacturing through appropriate policy support.
6. Ensure sustainability of growth, particularly with regard to the environment including energy efficiency, optimal utilization of natural resources and restoration of damaged/ degraded eco-systems.

Foreign Direct Investments (FDI) in India ,2012

The Centre In January 2012 notified 100 per cent foreign direct investment (FDI) in single brand retail, opening the decks for setting up shop by global retail chains such as Adidas, Louis Vuitton, Armani and Gucci to have full ownership of their India operations. However, the notification comes with some riders to protect the interests of domestic small and medium scale units.
“FDI up to 100 per cent under the government approval route would be permitted in single brand product retail trading,” according to an official note issued by the Department of Industrial Policy and Promotion (DIPP).

Cabinet approves proposal to place 12th Plan Document before National Development Council

The Union Cabinet today discussed the Draft Twelfth Five Year Plan document (2012-2017), and approved the proposal to place the Plan Document before the National Development Council.

The Plan proposes an acceleration of growth over the plan period to reach 9 percent in the terminal year, yielding an average growth rate of 8.2 percent for the plan period as a whole. It emphasizes that the growth must be both inclusive and sustainable, and to achieve these objectives it proposes a comprehensive game plan in terms of policies and programmes.

Five years plan for india.

Ever since the independence in India, developmental plans for a period of five years are being developed by the Planning Commission with the inputs received from the states . The tenth plan completed its term in March 2007 and the eleventh plan is currently underway. Prior to the fourth plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which led to the adoption of the Gadgil formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans.

First Five-Year Plan (1951–1956)

Ø The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on December 8, 1951

Ø The total planned budget of 2069 crore was allocated to seven broad areas: 

•         irrigation and energy 
•         agriculture and community development
•         transport and communications 
•         industry
•         land rehabilitation
•         other sectors and services 
•         social service

 

Ø The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8%.

Ø National income increased more than the per capita income due to rapid population growth.

Ø Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam.

Ø At the end of the plan period in 1956, five Indian Institutes of Technology(IITs) were started as major technical institutions.

Ø The University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country.Contracts were signed to start five steel plants, which came into existence in the middle of the second five-year plan. The plan was successful.

Ø Target Growth: 2.1% Actual Growth: 3.6%