Role and Functions of Reserve Bank of India

March 14, 2016October 25, 2024 by rawan239

Role of RBI

	Pre-reform	Post-reform
Developmental Role: the developmental role has increased in view of the changing structure of the economy with a focus on SMEs and financial inclusion	Priority Sector Lending: Introduced from 1974 with public sector banks. Extended to all commercial banks by 1992	In the revised guidelines for PSL the thrust is on ensuring adequate flow of bank credit to those sectors that impact large segments of the population and weaker sections, and to the sectors which are employment intensive such as agriculture and small enterprises
	Lead Bank Scheme	Special Agricultural Credit Plan introduced.
		Kisan Credit Card scheme (1998-99)
		Focus on credit flow to micro, small and medium enterprises development
		Financial Inclusion
Monetary Policy: the role of RBI has changed from regulating credit and money flow directly to using market mechanisms for achieving policy targets. MP framework has changed to promote financial deregulations and market development. Role as a facilitator rather than as principal actor.	M3 as an intermediary target	Multiple Indicator Approach
	Regulation of foreign exchange	Management of foreign exchange
	Direct credit control	Open Market Operations, MSS, LAF
	Rupee convertability highly managed	Full current ac convertability and some capital account convertability
Banker to the government	Monetary policy was linked to the fiscal policy due to automatic monetisation of the deficit	Delinking of monetary policy from the fiscal policy. From 2006, under FRBM, RBI ceased to participate in the primary market auctions of the central government’s securities.
As regulator of financial sector: As regulator of the financial sector, RBI has faced the challenge of regulating the increasing financial sector in India. Credit flows have increased. RBI had to make sure that financial institutions are regulated in a way to protect the consumers while not impeding economic growth.	Reduction in SLR
Custodian of FOREX reserves		Forex reserves have increased drastically. Need to manage it adequately and avoid inflationary impact
Inflation	Direct instruments were used	Multiple indicators
Financial Stability	Closed economy	Increased FDI and FII has made financial stability one of the policy objectives.
Money Market		Narsimhan Committee (1998) recommended reforms in the money market

Meghalaya Human Development Index

December 12, 2017October 25, 2024 by rawan239

Meghalaya Human Development Index

The State of Meghalaya is situated on the north east of India. It extends for about 300 kilometres in length and about 100 kilometres in breadth. It is bounded on the north by Goalpara, KamrupandNowgong districts, on the east by KarbiAnglong and North Cachar Hills districts, all of Assam, and on the south and west by Bangladesh.

Meghalaya is subject to vagaries of the monsoon. The average annual rainfall is about 2600 mm over western Meghalaya, between 2500 to 3000 mm over northern Meghalaya and about 4000 mm over south-eastern Meghalaya. There is a great variation of rainfall over central and southern Meghalaya. Meghalaya Human Development Index

Meghalaya is basically an Agricultural State with about 80% of its total population depending entirely on Agriculture for their livelihood. Rainfall varies from place to place and from altitude to altitude. The amount of rainfall over Cherrapunjee and Mawsynram is quite heavy. During the last two decades, it has ranged from 11,995 mm to 14,189 mm in Cherrapunjee and over Mawsynram it was 10,689 mm to 13,802 mm.

HUMAN DEVELOPMENT INDEX:-

The Human Development Index (HDI) is a comparative measure of quality of life. It mainly comprise three components:-

A long and healthy life: Life expectancy at birth.
Education index: Mean years of schooling and Expected years of schooling.
A decent standard of living: GNI per capita (PPP US$)for countries worldwide. It is a standard means of measuring well-being, especially child welfare.
It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life.

According to Global Hunger Index – 2017, only 9.6 per cent of our children, between 6 and 23 months of age, receive adequate diet and 97 million children in India are underweight! Thus Indian economy is going to face a gigantic problem of unhealthy and unskilled work-force in the future, which will further degrade our resources into liabilities. Ironically, according to a study, two-thirds of food to feed 600 million poor Indians is lost as hungry millions do not have enough purchasing power to buy the same. Now, government itself can buy it from farmers with minimum support price (MSP). It will certainly stop the incidence of farmers’ suicides. The excess food can then be distributed to students in addition to the midday meal. This will attract more students to school and address the issues like illiteracy, school dropout, child labour, hunger and malnutrition.

In the Human Development Index (HDI) of India for the year 2011, Meghalaya is ranked 26th with 0.585(Medium) HDI value.

Measures of HDI indicators for Meghalaya:-

Mizoram per capita income in 2009-10:- Rs 35,323,
Literacy according 2011 census :-84% (24^th rank),the male literacy rate is 77.2 per cent and the female literacy rate is 73.8 per cent. In 2011-12, the state had a total of 43,102 teachers in lower primary & upper primary schools, 4,621 teachers in secondary schools and 526 teachers in higher secondary schools.
Education index of Meghalaya :- 0.512,(28^th rank).

Meghalaya, among the eight North Eastern States, is ranked 7th, only above Assam which has 0.534 HDI value in 2011.
Meghalaya’s first HDI report “Meghalaya Human Development Report 2008” was published in 2009, and has been the sole report since to indicate the health of the State to the world.The report clearly indicated that the rate of development in Meghalaya is slower than in most of the state and hence, been lagging behind while many states have improved their ranking.
The report highlighted that the health sector is poor and East Khasi Hills tops in HDI and GDI among the districts followed by West Garo Hills.
The report seemed to highlight Meghalaya being significantly behind in almost all sectors in comparison all other states while it failed to furnish full details, which could make it possible to make better comparisons.
Even then, a new report is yet to be furnished.

State-wise HDI score and rank 1992-93 to 2005-06 for north east states:-

	HDI	Rank	HDI	Rank
States	1992-93	1992-93	2005-06	2005-06
Arunachal Pradesh	0.130	8	0.082	8
Assam	0.450	2	0.472	2
Manipur	0.372	3	0.440	4
Meghalaya	0.176	7	0.208	7
Mizoram	0.657	1	0.622	1
Nagaland	0.332	4	0.292	6
Sikkim	0.327	5	0.462	2
Tripura	0.269	6	0.439	5

Introduction to Meghalaya Economy

October 28, 2017October 25, 2024 by rawan239

Introduction to Meghalaya Economy

About Meghalaya:

Meghalaya, the Abode of Clouds, is a state in the Northeast region of India. The state has a total area of 22,429 sq km and about one third of the state is under mountain forest cover. Meghalaya has a total population of 29,66,889, as per the 2011 census. Shillong is the capital of Meghalaya. The state is surrounded by Assam to its north and Bangladesh to its south.

Meghalaya lies in the Northeastern part of India. The fact remains that a major part of the border of the state is situated on the north and eastern part of Assam. The south and west part are with Bangladesh. It is possible to consider Meghalaya as the wettest state in the country, experiencing an annual rainfall of 1,200 cm. There are numerous rivers including Ganol, Umiam, Umngot, Umkhem and Damring. Apart from the aforementioned rivers, you can also find a number of other rivers such as Umiam Mawphlang and Khri.

Economy of Meghalaya

The economy of Meghalaya is predominantly agrarian. About two-third of the total population of the state is engaged in allied and agriculture. Although the majority of the population is involved in agriculture as profession, this sector has very low contribution in the GDP of the state. The climatic conditions of the state encourage the cultivation of variety of horticulture crops which includes vegetables, fruits, spices, flowers etc. The state is rich in natural resources and plenty of minerals such as sillimanite, limestone, coal, granite etc. are available in abundance.

Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country. The diverse range of soil types, including red-loamy and laterite, support various agricultural crops like rice, maize, pulses, oilseeds, cotton, jute and mesta. Meghalaya has a strong floriculture sector and is one of the leading states in the Northeast in terms of production and supply of cut flowers to mainland consumer markets. About 14 per cent (3,108 square kilometres) of Meghalaya is covered by bamboo forests, and the state is one of the leading bamboo producers in the country. The state has achieved success in the cultivation of non-traditional crops like tea, cashew nut, oilseeds, tomato, mushroom, wheat, etc. During 2015-16, the state produced 409.25 thousand tonnes of fruits under an area of 37.14 thousand hectares. Similarly, 88.20 thousand tonnes of spices were produced in the state under an area of 18.20 thousand hectares during 2015-16.

Of the 6,000 medicinal plants in India, 834 plants, including the famous Himalayan Yew, are in Meghalaya. Moreover, the state has eight of the top 20 medicinal plants that are traded in the country and are in high demand.

Meghalaya had an installed hydroelectric power capacity of 356.58 MW as of June 2016, comprising 313.03 MW from state utilities and 197.42 MW from central utilities. Of the total installed power generation capacity, 356.58 MW was contributed by hydropower, 122.84 MW by thermal power, and 31.03 MW by renewable power. The potential for hydropower in the state is estimated to be around 3,000 MW.

Meghalaya, with abundant deposits of coal, limestone, kaolin feldspar, quartz, granite, industrial clay and uranium and a small deposit base of sillimanite, bauxite, base metals and apatite has great industrial potential.

Meghalaya, one of the most picturesque states in the country, has two National Parks and three wildlife sanctuaries. It offers many adventure tourism opportunities like mountaineering, rock climbing, hiking & trekking, water sports, etc.

Agro-processing, horticulture, minerals, tourism, electronics and IT have been identified as thrust sectors for development and promotion. The state provides excellent institutional support through various central and state government agencies, namely North East Council, Ministry of Development of North Eastern Region, and Meghalaya Industrial Development Corporation.

The natural resources, policy incentives and infrastructure in the state favour investments in the tourism, hydroelectric power, manufacturing and mining sectors. Mineral, horticulture, electronics, IT, agro-processing and tourism have been identified as the thrust sectors for industrial development. The state has abundant natural resources, which offer significant avenues for investment. About 14 per cent (3,108 square kilometres) of Meghalaya is covered by bamboo forests and the state is one of the leading bamboo producers in the country.

Key Sectors:

Meghalaya is one of the leading north-eastern states in terms of production and supply of cut flowers to mainland consumer markets. The state’s climate, particularly the areas near Shillong in East Khasi hills district, is well suited for cut flower production.
Meghalaya is one of the leading producers of bamboo in the country. Bamboo enterprises can be developed from the bamboo reserves and forest cultivations. Natural bamboo forests cover 3,108 square kilometers (14 per cent) of Meghalaya’s total geographical area.
Meghalaya has a climate that supports agricultural and horticultural activities. The state offers potential for investment in these areas.
As of June 2016, the state had an installed hydroelectric power capacity of 356.58 MW. The state utilities accounted for a share of 79 per cent in total installed capacity and the remaining is contributed by the central sector. Hydroelectric power projects with a total capacity of 687 MW have been proposed to be set up in Meghalaya. All these projects are projected to be operational by 2016-17.
Meghalaya is richly endowed with flora, fauna, thick forests, ancient forest groves, large rivers and grass fields – making it an attractive tourism destination.
Meghalaya has an established tradition of high-quality weaving. Around 15,900 families are involved in handloom activities in the state. There are eight handloom production centres, 24 handloom demonstration-cum-production centres, 24 weaving training centres and a state-level handloom training institute (Mendipathar, East Garo Hills) in the state.

Economic Growth, Development & Planning

December 21, 2016October 25, 2024 by rawan239

Economic Growth

Economic growth means an increase in real GDP. This increase in real GDP means there is an increase in the value of national output / national expenditure.
Economic growth is an important macro-economic objective because it enables increased living standards and helps create new jobs.

Measurement of Economic Growth

Economic growth is measured by changes in the gross domestic product (GDP). It measures a country’s entire economic output for the past year. That takes into account all goods and services that are produced in this country for sale, whether they are sold domestically or sold overseas. It only measures final production, so that the parts manufactured to make a product are not counted. Exports are counted because they are produced in this country. Imports are subtracted from economic growth. Economic growth is measured quarterly measured using real GDP to compensate for the effects of inflation. Here’s more on the GDP growth rate and how you can calculate it.

Measurements of economic growth do not include unpaid services. They include the care of one’s children, unpaid volunteer work, or illegal black-market activities.

Determinants of Economic Growth

Productivity.
Intensity (hours worked)
Demographic changes.
Political institutions, property rights, and rule of law.
Capital.
New products and services.
Growth phases and sector shares.

The Concept Of Economic Development

Economic development is the process by which a nation improves the economic, political, and social well-being of its people.

Differences between Economic Growth and Economic Development

Economic growth measures an increase in Real GDP (real output). GDP is a measure of the national income / national output and national expenditure. It basically measures the total volume of goods and services produced in an economy.

Economic Development looks at a wider range of statistics than just GDP per capita. Development is concerned with how people are actually affected. It looks at their actual living standards and the freedom they have to enjoy a good standard of living.

Elements/ Factors Contributing to Economic Development

Human Resource
Natural Resources
Capital Formation
Technological Development
Social and Political Factors

Economic Planning for India

Economic planning refers to the initiation, control and regulation of economic activity by the state with a view to achieve predetermined objectives within a given time-interval.

The principal function of planning, especially in a federal system, is to evolve a shared vision of and commitment to the national objectives and development strategy not only in the government at all levels, but also among all other economic agents.
NITI Aayog acts as the quintessential platform of the Government of India to bring States to act together in national interest, and thereby fosters Cooperative Federalism.

At the core of NITI Aayog’s creation are two hubs – Team India Hub and the Knowledge and Innovation Hub. The Team India Hub leads the engagement of states with the Central government, while the Knowledge and Innovation Hub builds NITI’s think-tank capabilities. These hubs reflect the two key tasks of the Aayog.

NITI Aayog is also developing itself as a State of the Art Resource Centre, with the necessary resources, knowledge and skills, that will enable it to act with speed, promote research and innovation, provide strategic policy vision for the government, and deal with contingent issues.

CPI

September 22, 2015October 24, 2024 by rawan239

The Central Statistics Office (CSO) of the Ministry of Statistics & Programme Implementation announced that the new series of Consumer Price Index(CPI) numbers for Rural, Urban and Combined (Rural +Urban) on base 2010 ( January to December)=100 taking all segments of rural and urban population for the month of January, 2011 will be released by the Central Statistics Office for the States/UTs and all- India on 18th February, 2011.These indices will be available for five major groups namely Food, beverages and tobacco; Fuel and light; Housing; Clothing, bedding and footwear, and Miscellaneous.

Banking- Role of Commercial Banks, Issue of NPA, Financial Inclusion:-

March 22, 2016October 24, 2024 by rawan239

Table of Content:-

Role of Commercial Banks
Issue of NPA
Financial Inclusion

Role of Commercial Banks

A Commercial bank is a type of financial institution that provides services such as accepting deposits, making business loans, and offering basic investment products

There is acute shortage of capital. People lack initiative and enterprise. Means of transport are undeveloped. Industry is depressed. The commercial banks help in overcoming these obstacles and promoting economic development. The role of a commercial bank in a developing country is discussed as under.

Mobilising Saving for Capital Formation:

The commercial banks help in mobilising savings through network of branch banking. People in developing countries have low incomes but the banks induce them to save by introducing variety of deposit schemes to suit the needs of individual depositors. They also mobilise idle savings of the few rich. By mobilising savings, the banks channelize them into productive investments. Thus they help in the capital formation of a developing country.

Financing Industry:

The commercial banks finance the industrial sector in a number of ways. They provide short-term, medium-term and long-term loans to industry.

Financing Trade:

The commercial banks help in financing both internal and external trade. The banks provide loans to retailers and wholesalers to stock goods in which they deal. They also help in the movement of goods from one place to another by providing all types of facilities such as discounting and accepting bills of exchange, providing overdraft facilities, issuing drafts, etc. Moreover, they finance both exports and imports of developing countries by providing foreign exchange facilities to importers and exporters of goods.

Financing Agriculture:

The commercial banks help the large agricultural sector in developing countries in a number of ways. They provide loans to traders in agricultural commodities. They open a network of branches in rural areas to provide agricultural credit. They provide finance directly to agriculturists for the marketing of their produce, for the modernisation and mechanisation of their farms, for providing irrigation facilities, for developing land, etc.

They also provide financial assistance for animal husbandry, dairy farming, sheep breeding, poultry farming, pisciculture and horticulture. The small and marginal farmers and landless agricultural workers, artisans and petty shopkeepers in rural areas are provided financial assistance through the regional rural banks in India. These regional rural banks operate under a commercial bank. Thus the commercial banks meet the credit requirements of all types of rural people. In India agricultural loans are kept in priority sector landing.

Financing Consumer Activities:

People in underdeveloped countries being poor and having low incomes do not possess sufficient financial resources to buy durable consumer goods. The commercial banks advance loans to consumers for the purchase of such items as houses, scooters, fans, refrigerators, etc. In this way, they also help in raising the standard of living of the people in developing countries by providing loans for consumptive activities and also increase the demand in the economy.

Financing Employment Generating Activities:

The commercial banks finance employment generating activities in developing countries. They provide loans for the education of young person’s studying in engineering, medical and other vocational institutes of higher learning. They advance loans to young entrepreneurs, medical and engineering graduates, and other technically trained persons in establishing their own business. Such loan facilities are being provided by a number of commercial banks in India. Thus the banks not only help inhuman capital formation but also in increasing entrepreneurial activities in developing countries.

Help in Monetary Policy:

The commercial banks help the economic development of a country by faithfully following the monetary policy of the central bank. In fact, the central bank depends upon the commercial banks for the success of its policy of monetary management in keeping with requirements of a developing economy.

Issue of NPA

A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.According to RBI, terms loans on which interest or installment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset.

However, in terms of Agriculture / Farm Loans; the NPA is defined as under:

For short duration crop agriculture loans such as paddy, Jowar, Bajra etc. if the loan (installment / interest) is not paid for 2 crop seasons , it would be termed as a NPA.
For Long Duration Crops, the above would be 1 Crop season from the due date.

The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act has provisions for the banks to take legal recourse to recover their dues. When a borrower makes any default in repayment and his account is classified as NPA; the secured creditor has to issue notice to the borrower giving him 60 days to pay his dues. If the dues are not paid, the bank can take possession of the assets and can also give it on lease or sell it; as per provisions of the SAFAESI Act.

Reselling of NPAs :- If a bad loan remains NPA for at least two years, the bank can also resale the same to the Asset Reconstruction Companies such as Asset Reconstruction Company (India) (ARCIL). These sales are only on Cash Basis and the purchasing bank/ company would have to keep the accounts for at least 15 months before it sells to other bank. They purchase such loans on low amounts and try to recover as much as possible from the defaulters. Their revenue is difference between the purchased amount and recovered amount.

Financial Inclusion

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. Financial-inclusion

Government of India has launched an innovative scheme of Jan Dhan Yojna for Financial Inclusion to provide the financial services to millions out of the regulated banking sector.

Various program’s for financial inclusion are:-

Swabhimaan Scheme: under the Swabhimaan campaign, the Banks were advised to provide appropriate banking facilities to habitations having a population in excess of 2000 (as per 2001 census) by March 2012.
Extention of the banking network in unbanked areas,
Expansion of Business Correspondent Agent (BCA) Network
Direct Benefit Transfer (DBT) and Direct Benefit Transfer for LPG (DBTL)
RuPay, a new card payment scheme has been conceived by NPCI to offer a domestic, open-loop, multilateral card payment system which will allow all Indian banks and financial Institutions in India to participate in electronic payments.
Pradhan Mantri Jan-Dhan Yojana (PMJDY) was formally launched on 28th August, 2014. The Yojana envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension. The beneficiaries would get a RuPay Debit Card having inbuilt accident insurance cover of Rs.1.00 lakh. In addition there is a life insurance cover of Rs.30000/- to those people who opened their bank accounts for the first time between 15.08.2014 to 26.01.2015 and meet other eligibility conditions of the Yojana.

02.02.18 Meghalaya(MeghalayaPSC) Current Affairs

February 5, 2018October 22, 2024 by rawan239

NORTH-EASTERN STATES

Budget brings hope to bamboo-rich northeast

Bamboo is essentially a type of grass, but its classification as a tree for 90 years prevented the northeast, which grows 67% of India’s bamboo, from exploiting it commercially unlike China, the only country with richer bamboo genetic resources.

Now Budget 2018 has ignited farm hope for this tree-turned-grass which once fuelled insurgency in the northeastern states. The allocation of ₹1,290 crore for a restructured National Bamboo Mission (NBM) has raised hopes for a range of bamboo-based industries – from food professing to construction.

Bamboo is a wonder, multi-utility grass that more than 300 ethnic groups in the northeast have traditionally been using in every stages of life, from birth to death, besides it being a delicacy. Bamboo’s commercial journey began when it was struck off the list of trees by amending the Indian Forest Act last year.

The Budget provision is one of the best initiatives to promote holistic development of bamboo. But the restructured NBM needs to be more focussed on value-chain management and value-addition of bamboo at community level which will bring more income to the bamboo farmers and bamboo processors.

INTERNATIONAL

· India Slips to 42nd Place On EIU Democracy Index, Norway Tops

India slipped to 42nd place on an annual Global Democracy Index according to the data compiled by the Economist Intelligence Unit (EIU). India has moved down from 32nd place last year.
The top 5 Countries in the list are
Norway,

Iceland,

Sweden,

New Zealand and

Denmark

The index ranks 165 independent states and two territories on the basis of five categories: electoral process and pluralism, civil liberties, the functioning of government, political participation and political culture.

The list has been divided into four broad categories- full democracy, flawed democracy, the hybrid regime and authoritarian regime.

North Korea is ranked the lowest at 167th, while Syria is a notch better at 166th place.

· India Joins Ashgabat agreement

India joined Ashgabat Agreement on the establishment of an International Transport and Transit Corridor between the Iran, Oman, Turkmenistan, and Uzbekistan.
The agreement was signed in 2011, which envisages facilitation of transit and transportation of goods between Central Asia and the Persian Gulf.
According to the External Affairs Ministry, the accession to the Agreement would diversify India’s connectivity options with Central Asia and have a positive influence on its trade and commercial ties with the region.

NATIONAL

Union Budget 2018: Key takeaways and sector-wise highlights

Finance Minister Arun Jaitley delivered the current government’s fifth and last full financial budget (Budget 2018 for the fiscal year 2018-19) amid subdued economic growth, challenging fiscal situation and farm distress.

Here are the key highlights from the Union Budget 2018:

Economic Health

Economy firmly on course to achieve high growth of 8%
GDP growth at 6.3% in the second quarter of 2017-18 signals turnaround of the economy
Growth in the second half likely to remain between 7.2% to 7.5%

Agriculture and Rural Economy

MSP for all unannounced Kharif crops increased to 150%
Institutional credit for agri-sector increased to Rs.10 lakh crore in 2017-18
Fisheries, aquaculture and animal husbandry corpus at Rs.10,000 crore
New scheme Operation Greens with an outlay of Rs 500 Crore
Govt to develop and upgrade existing 22,000 rural haats
Agri-Market Infrastructure Fund with a corpus of Rs.2000 crore
Allocation for Ministry of Food Processing doubled to Rs.1400 crore
Loans to Self Help Groups (SHG) of women to increase to Rs.75,000 crore by March 2019.
Increased allocation of National Rural Livelihood Mission to Rs 5750 crore
Under Ujjwala Scheme distribution of free LPG connections will be given to 8 crore poor women
Housing for All by 2022 – more than one crore houses to be built by 2019 in rural areas

Education, Health, and Social Protection

Estimated budgetary expenditure on health, education and social protection at Rs.1.38 lakh crore
Ekalavya Model Residential School to be set up for tribal children
Investments for research & infra in premier educational institutions at Rs.1 lakh crore in next 4 years
Allocation on National Social Assistance Programme at Rs. 9975 crore
NHPS to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries)
NHPS to provide coverage up to 5 lakh rupees per family per year for hospitalisation
Rs 1200 crore for the National Health Policy, 2017 – additional Rs.600 crore for TB patients
24 new Government Medical Colleges and Hospitals

Medium, Small and Micro Enterprises (MSMEs) and Employment

Major thrust for Medium, Small and Micro Enterprises (MSMEs) – allocation at Rs. 3794 crore
Target of Rs.3 lakh crore for lending under MUDRA Yojana
70 lakh formal jobs to be created this year
Govt to make 12% contribution of new employees in the EPF for all the sectors for 3 years
Outlay of Rs.7148 crore for the textile sector
Increase budgetary allocation on infrastructure for at Rs.5.97 lakh crore
To develop 10 prominent tourist sites into Iconic Tourism destinations
35000 kms road construction in Phase-I at an estimated cost of Rs.5,35,000 crore

Railways

Railways Capital Expenditure pegged at Rs.1,48,528 crore
4000 kilometers of electrified railway network slated for commissioning
Work on Eastern and Western, dedicated freight corridors
Over 3600 km of track renewal targeted in current fiscal
Redevelopment of 600 major railway stations
Mumbai’s local train network to have 90 kilometers of double line tracks at Rs.11,000 crore cost
150 km of additional suburban network planned for Mumbai
Suburban network of 160 km at for Bengaluru metropolis

Air Transport

To expand airport capacity more than five times to handle a billion trips a year
Regional connectivity – 56 unserved airports and 31 unserved helipads to be connected
To establish unified authority for regulating all financial services

Digital Economy

NITI Aayog to initiate a national program to direct efforts in artificial intelligence
Department of Science & Technology to launch Mission on Cyber-Physical Systems
Allocation doubled on Digital India programme to Rs 3073 crore
To set up 5 lakh wifi hotspots to provide net-connectivity to five crore rural citizens
Rs. 10000 crore for creation and augmentation of telecom infrastructure

Defence

Development of two defence industrial production corridors.
Allocation of Rs 2.95 lakh crore to defence sector.

Emoluments

To revise emoluments to Rs.5 lakh for the President
Rs 4 lakhs for the Vice President
Rs.3.5 lakh per month to Governor
Pay for Members of Parliament – law for automatic revision of emoluments every 5 years
150th Birth Anniversary of Mahatma Gandhi- Rs.150 crore for commemoration programme

Fiscal Management

Budget Revised Estimates for Expenditure at Rs.21.57 lakh crore
Revised Fiscal Deficit estimates at 3.5% of GDP
To bring down Central Government’s Debt to GDP ratio to 40%

Jaitley announces ‘world’s largest healthcare programme’

Finance Minister Arun Jaitley announced two new initiatives under the Ayushman Bharat Programme in the Union Budget 2018.

Under the programme, Mr. Jaitley announced a new flagship National Health Protection Scheme, providing a health insurance cover of ₹5 lakh a family per annum.
The scheme will cover 10 crore vulnerable families, with approximately 50 crore beneficiaries.
Mr. Jaitley also announced the creation of health and wellness centres, which will “bring healthcare closer to home”.
These centres, 1.5 lakh in number, will provide free essential drugs and diagnostic services. A sum of Rs. 1200 crore had been allocated for this.

· Thirty Second Surajkund International Crafts Mela Begins

The 32nd Surajkund International CraftsMela begun in Faridabad, Haryana.
The Mela is organized by the Surajkund Mela Authority and Haryana Tourism in collaboration with Union Ministries of Tourism, Textiles, Culture and External Affairs.

The 17-day cultural extravaganza will see a spectacular showcase of regional and international crafts, handlooms, traditions along with some mouth-watering multi-cuisine food for the visitors.

This year Uttar Pradesh is the theme state and Kyrgyzstan is the Partner Nation.

Export Import (EXIM) Policy of India

December 21, 2016October 21, 2024 by rawan239

Export Import Policy or Exim Policy or Foreign Trade Policy is a set of guidelines and instructions related to the import and export of goods.

Various Objectives of Exim Policy are :-

To facilitate sustained growth in exports from India and import in India.
To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, consumables and capital goods scheme required for augmenting production and providing services.
To enhance the technological strength and efficiency of Industry Agriculture industry and services, thereby improving their competitive strength while generating new employment opportunities, and to encourage the attainment of internationally accepted standards of quality.
To provide clients with high-quality goods and services at globally competitive rates. Canalization is an important feature of Exim Policy under which certain goods can be imported only by designated agencies. For an example, an item like gold, in bulk, can be imported only by specified banks like SBI and some foreign banks or designated agencies.

The new five year Foreign Trade Policy, 2015-2020 provides 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 our Hon’blc Prime Minister. The focus of the government is to support both the manufacturing and services sectors, with a special emphasis on improving the ‘ease of doing business’.

Merchandise Exports from India Scheme (MEIS):-To offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are of India’s export interest and have the capability to generate employment and enhance India’s competitiveness in the world market.With the aim in making India’s products more competitive in the global markets, the scheme provides incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties.

Service Exports from India Scheme (SEIS) :-Service Provider of eligible services shall be entitled to Duty Credit Scrips at notified rates.

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty.

Other Specific steps taken for the developement of international trade are:-

Trade Facilitation & Ease Of Doing Business
DGFT as a facilitator of exports/imports
Niryat Bandhu – Hand Holding Scheme for new export / import entrepreneurs
Online Complaint Registration and Citizen’s Charter
Monitoring System
Issue of e-IEC (Electronic-Importer Exporter Code)
e-BRC
MoU with State Governments for sharing of e-BRC data
Exporter Importer Profile
Reduction in mandatory documents required for Export and Import
Online Inter-ministerial consultation
Facility of online filing of applications
Facility to upload documents by Chartered Accountant / Company Secretary / Cost Accountant
Electronic Data Interchange (EDI)
Message Exchange with Community partners
(a) Message Exchange with Customs
(b) Message Exchange with eBiz
(c) Message Exchange with Banks
(d) Message Exchange with EPCs
Encouraging development of Third Party API
Forthcoming e-Governance Initiatives
Free passage of Export consignment
No seizure of export related Stock
24 X 7 Customs clearance
Single Window in Customs
Self-Assessment of Customs Duty
Authorised Economic Operator (AEO) Programme
Prior filing facility for Shipping Bills
Cutting down delay in filing of Export General Manifest (EGM) for duty drawback
Facility of Common Bond / LUT against authorizations issued under different EP Schemes
Exemption from Service Tax on Services received abroad
Export of perishable agricultural Products
Time Release Study (TRS)
Towns of Export Excellence (TEE)

Impact of Liberalisation

March 19, 2016October 18, 2024 by rawan239

The leading economists of the country differ in their opinion about the socioeconomic and ecological consequences of the policy of liberalisation.Liberalization has led to several positive and negative effects on Indian economy and society. Some of the consequences of liberalisation have been briefly described here:

1. Increase in the Direct Foreign Investment: The policy of liberalisation has resulted in a tremendous increase in the direct foreign investment in the industrial and infrastructural sector (roads and electricity).

2. Enhancement in the Growth of GDP: There is a significant growth in the Gross Domestic Product (GDP). Prior to the liberalisation, the growth rate of GDP was around 4 per cent which rose to around 10 per cent in 2006-07.

3. Reduction in Industrial Recession: The industrial sector of India was passing through a period of recession prior to the policy of liberalisation. The foreign and private investment has checked the recession trend. This happened because of the massive investment in modernisation, expansion, and setting up of many new projects. Industries like automobiles, auto-components, coal-mining, consumer electronics, chemicals, food-processing, metal, petrochemicals, software, sport-goods, and textiles have undergone a growth rate of about 25 per cent. In addition to these, other industries, like crude-oil, construction, fertilisers, and power generation have shown an increase of about 15 per cent.

4. Employment: The heavy investments in industries and infrastructure by the Indian and foreign investors have generated great employment opportunities for the professionals, and skilled and unskilled workers.

5. Development of Infrastructure: Prior to the liberalisation, the infrastructure (roads and electricity) were in a bad shape affecting the industrial growth and economic development of the country adversely. Heavy investment in infrastructure has improved the efficiency of the industrial sector significantly.

6. Rise in Export: There is a phenomenal increase in export after liberalisation. Simultaneously India is importing raw materials, machinery, and finished products. Despite heavy imports, there has been a tangible improvement in the balance of payment.

7-Increase in Regional Disparities:The policy of liberalisation and New Industrial Policy (1991) could not reduce the regional inequalities in economic development. In fact, investments by the Indians and foreign investors have been made in the states of Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, and West Bengal. The states like Bihar, Himachal Pradesh, Jammu and Kashmir, Kerala, Meghalaya, Mizoram, Nagaland, Orissa, Tripura, Uttar Pradesh, and Uttarakhand are lagging behind. This has accentuated the regional imbalance and has lead to north south devide. The maximum investment so far has been done in Maharashtra, Gujarat, Andhra Pradesh, West Bengal, and Tamil Nadu. This uneven industrial development has resulted into many socioeconomic and political problems. The Naxal Movement, ULFA, and political turmoil in Jammu and Kashmir may be partly explained as being caused due to the less industrial and economic development of the regions.
8. Damage to Cottage and Small Scale Industries:Liberalisation in a country like India has adversely affected the traditional cottage and small scale industries which are unable to compete with the large-scale industries established by the multinationals. The cottage and small scale industries need protection in the form of subsidies, technology, technical access, funds, and network to export their products, Indian traditional workers such as silk workers of bihar are threatened by the imported synthetic silk.

9.Sophisticated Technology: The latest technology, being sophisticated, replaces labour and thus results in unemployment. This may be counter productive and detrimental to our industrial structure.

10. Comparatively Little Direct Investment: The foreign investors are more inclined to portfolio investment rather than direct investment. The former may be withdrawn at will at the slightest of hurdles giving a jolt to the economy of the country and it may create instability to Indian economy.

11. Investment in Selected Industries: Most of the foreign investment comes to white-goods and not to wage-good sector. Hence, it may be fruitful in improving the high priority sector and bringing in the latest technology. This will be counter productive. India is blessed with demographic dividend and the selective investment has failed to harness it.

12. Economic and Political Freedoms are at Stake: The over-enthusiasm of liberalisation to attract more investors and foreign exchange might lead to gradual handling over of the whole economy to the multinationals. This will affect adversely our economic and political freedom.

13. Inflation: Since the new industrial policy and liberalisations, the rate of inflation is continuously increasing. A section of the society is becoming more rich and adopting the lifestyle of consumerism. As opposed to this, the absolute number below the poverty line is also increasing. The gulf between the rich and the poor may be the cause of numerous social problems resulting in social tension.

Fishing in Meghalaya

January 15, 2018October 17, 2024 by rawan239

Fishing in Meghalaya

Meghalaya, with its vast inland fishery resources in the form of rivers, reservoirs, lakes and ponds and an average rainfall of 1200 mm, offers tremendous scope for developing the fisheries sector, but lags behind in harnessing the potential of these natural resources. The available land in most parts of Meghalaya is uneven in terrain which makes it somewhat difficult to develop fisheries on commercial lines. However, rain water can be impounded in small ponds for the production of fish and inland fisheries therefore, offering a potential that can be successfully exploited by the people of the state. Furthermore, creation of additional water area for fish culture will lead to a transformation in the rural economy and improve the livelihoods of the poor tremendously.

The Government of Meghalaya has identified fisheries as a key sector and decided to assist the people to develop fish ponds. It has launched the Meghalaya State Aquaculture Mission (MSAM) co-terminus with the Twelfth Five Year Plan period (20 12-13 to 20 16-17).

Meghalaya State Aquaculture Mission (MSAM)

The Aquaculture Mission is divided into six Mini Missions for better focus and ease of implementation. Mini Mission I is related to “Area and Productivity Expansion”, which will be achieved through four sub components, viz., individual pond construction, community pond construction, development of marshy and swampy areas and bheels and reservoir fishery development. Mini Mission II is for “Critical infrastructure development”, which has five components: fish seed production, fish feed production, fish disease management, pre and post harvesting infrastructure and creation and strengthening of fishery and multi-purpose cooperatives. Fish seed production will be achieved through Government and private hatcheries and utilizing FRP technology as also inducting Israeli technology.

Establishing sanctuaries for conserving indigenous and endemic species of fish is the focus of Mini Mission III. Surveys for identifying the endangered species, orientation workshops and media campaigns will be organised under the Mission. The Mission will collaborate with the Department of Tourism for boosting the objectives and targets of the Mission related to Mahaseer and other native species conservation. Mini Mission IV is for “Capacity Building” of farmers as well as officials, programme managers, multi-service providers, co-operators, etc. Mass mobilization campaigns and skill trainings for unemployed youth will be organised under this mini mission. Mini Mission V is titled “Mass media campaigns, documentation and outreach”, which will take care of two important activities, viz., awareness building about the Mission and publicity among the public and process documentation of the implementation and preparation of success stories.

Mini Mission VI deals with “Emerging opportunities in the fisheries sector”, which is an exclusive visionary component envisaged for tapping the emerging opportunities and addressing them with scientific backstopping. Ornamental fisheries, trout farming, introduction of freshwater prawn culture and new table species of fish and aqua tourism/ aqua parks/ sport fisheries will be the components under this mini mission.

Other Initiatives

Water development

The Department of agriculture has given emphasis in utilizing micro-watershed irrigation projects towards development of fisheries to optimize production of fishes from such rain water harvesting projects. Training and demonstration has been disseminated at the fisheries training institute to villagers 12 Small Reservoirs Multipurpose Development Projects and other communities who own these watershed project for utilizing modern technologies and identification of fish species which are suitable for culturing in these small reservoir. Fishing in Meghalaya

Sustainable diversification

Fish species diversification is a common practice by the fish farmer of the state and has been carried out in an extensive way with or without any assistance from the Government. It has been noted that this has helped the farmer particularly in Ri Bhoi District and in Garo hills District having the favourable climatic condition that culture of Air breathing fishes as other minor carps like Labio Gonious, Labio Bata, Cirhinus Cirhosa and others have improved the livelihood condition of the farmer in these regions.

Seeds

Seeds are the major requirement by the fish farmer of the state. Since time immemorial the state is dependent on neighbouring state of Assam and West Bengal and this is a major drawback as the seeds supplied are not upto the desired quality. Looking into this sector with serious concern the state fisheries Department during the 12th Plan period has established 12 nos. of Circular Eco-Hatcheries and 14 nos. of FRP hatcheries to augment fish seed production and to supply good quality seeds to the fish farmers. These hatcheries have been established in the private sector with 60% subsidy to the total unit cost. Further, under the funding of RKVY and NFDB schemes the Department is able to upgrade several Departmental fish farms which will serve the purpose of producing quality seeds in the state. The problem encountered in this field is the high mortality during fry stage which ultimately leads to low production of fingerling stage.

Livestock and fishery

The state has so far developed an approximate area of about 2500 hectare to support fish culture and production form individual as well as community fishery project. An approximate 8000 MT of fishes is being locally produced and consumed. Apart from this the state also has various fishery resources in the form of rivers and lakes which offers tremendous scope for developing the fishery sector but harnessing the potential of these natural resources is a major problem. The topography of the region makes it somewhat difficult to develop fishery on a commercial line. However rain water is being impounded through development of Rain water harvesting structures and small ponds for the production of fishes in the state. There are number of bheels and wetland in the plain areas of Garo Hills that have great potentiality for increasing the fish production.

Research and Extension

The State Department has one Research and Training Institute which carries out Extension and Training to Fish farmers as well as Fishery Supervisors and Demonstrators. However, various problems arise due to the absence of advance instruments in detecting and to carry out research in fish diseases. It is suggested that the State should have mobile laboratories so that analysis of water and soil may be carried out at the village level to upgrade and to standardize fish culture for optimum growth and production. One laboratory is also required for Fish disease management and Research and Analysis Unit for identification of Fish Genetics.