Category: ECONOMY-2

Context India must curb intellectual property rights violations in order to become an innovation hub. What are intellectual property rights? Intellectual Property Rights (IPRs) are legal rights, which result from intellectual invention, innovation and discovery in the industrial, scientific, literary and artistic fields. These rights entitle an individual or group to the moral and economic… Continue reading Why India needs Innovation and IP rights: An overview

Context: India has rejected fresh efforts by a clutch of countries led by the European Union (EU), Japan, Canada and Australia to negotiate new global e-commerce rules under the aegis of the World Trade Organization (WTO). Introduction: India fears that the new global e-commerce rules could provide unfair market access to foreign online retail firms,… Continue reading India opposes negotiating new global e-commerce rules

Context: India is the fastest growing large economy in the world despite this fact job creation is   very low in the country. Introduction: The labour bureau data shows that job creation could be at the lowest in eight years. According to Labour bureau statistics, job creation or job growth for 2015 and 2016 (April-December) stood… Continue reading The challenge of Job creation in India

Context The Prices of the pulses in India have always been an issue. On an average, the peaks have hovered 40 percentage points above the “zero” level. Somewhat predictably, pulses have seen an average annual inflation rate of 12%—the highest among food crops—in the past 12 years. Pulses in India Pulses are annual leguminous crops… Continue reading The Vagaries of Pulse Prices

Context Recently, the NITI Aayog released the Action Agenda for the government, a roadmap for reforming various sectors of the economy including agriculture. Introduction: NITI Aayog’s Action Agenda forms a part of larger Vision Document which spans a seven year strategy and a 15 years vision till fiscal year 2031-32. NITI Aayog’s Three Year Action… Continue reading NITI Aayog’s roadmap for reforming Agriculture sector

Context While 99.5 per cent of India’s villages are considered electrified, a fifth of the country’s population still awaits an electricity connection and many more suffer due to poor power supply. Hence, the government has moved beyond village electrification to 24×7 power for all by 2022. What is the new plan? The central government has… Continue reading India’s Power Generation

Context: The Cell for IPR Promotion and Management (CIPAM) under the aegis of the Department of Industrial Policy and Promotion (DIPP), launched a social media campaign to promote Geographical Indications (GIs). What are Intellectual Property Rights? Intellectual Property Rights (IPRs) are legal rights, which result from intellectual invention, innovation and discovery in the industrial, scientific,… Continue reading Protection of Geographical Indications from infringement

Context Urgency on bank consolidation is priority today but it must not distract from the bad loans mess, or problems of governance. What is Bank merging? A bank merger occurs when banks join to become one. The merging of Banks is a step forward towards development in the banking sector. Recent mergers and talk of… Continue reading Merging of Banks on an urgent basis

Context: As a part of the Goods and Services Tax (GST) reform, a new levy called the “GST Compensation Cess” has been introduced by the government in order to compensate the loss of the manufacturing States in the first five years of GST implementation. Introduction: The Cess has been introduced through the GST (Compensation to… Continue reading GST and its far reaching impacts

Reasons and implications of Rising oil prices Context There has been a sharp hike in the prices of petrol and diesel, since the “dynamic” daily pricing model for these fuels was introduced in India. What has been the trend in fuel prices? In the year 2014, the Brent crude price was $ 108.6 per barrel,… Continue reading Reasons and implications of Rising oil prices

Context To achieve inclusive growth in India, there is a need to shift the workers from informal employment to formal employment. What is informal employment? The informal economy is the diversified set of economic activities, enterprises, jobs, and workers that are not regulated or protected by the state. Some of the characteristic features of informal… Continue reading Inclusive growth: Why is it indispensable for India?

Context: The Ministry of Corporate Affairs (MoCA) has identified 1.06 lakh directors of ‘shell companies’ for disqualification under the relevant provisions of the Companies Act, 2013. Why is it done? To break the network of ‘shell companies’ and the fight against black money/money laundering activities. The move is pursuant to the MoCA’s action of cancellation… Continue reading Crackdown on Shell Companies

Context: According to a research paper by renowned economists Thomas Piketty and Lucas Chancel, income inequality in India is at its highest level since 1922. What is income inequality? Income inequality is the unequal distribution of household or individual income across the different participants in the economy. What are the key findings of the paper?… Continue reading The Widening Gap between India’s Rich and Poor

Context: India GDP growth rate slowed to 5.7% in Q1 of 2017-18 on the back of destocking ahead of GST implementation and the lingering impact of demonetization. What is the current status of Indian economy? According to the latest report of World Bank’s ease of doing business index for the year 2017, India has been… Continue reading A troubling roadmap for Indian economy

Context India will be raising concerns regarding the slow pace of negotiations on services trade liberalization in the region at the forthcoming ministerial-level meeting on the proposed Free Trade Agreement (FTA) involving 16 Asia-Pacific nations. What is RCEP? The Regional Comprehensive Economic Partnership (RCEP) is a proposed mega-regional Free Trade Agreement (FTA) between 16 Asia-Pacific… Continue reading India to raise important concerns this RCEP meet

Context: Niti Aayog recently launched the Ease of doing business report based on an enterprise survey of 3,500 manufacturing firms across the nation. Introduction: The report, ‘Ease of Doing business — An enterprise survey of Indian states’,said starting a business in India took longer than that estimated by the World Bank. The report sharply delineates… Continue reading A troubling roadmap for Indian manufacturing sector

Context Need to re-imagine the country’s natural ecosystems as its ‘natural capital’ Natural capital, if managed suitably can maximize the benefits of economic growth and development for any Nation. What is natural capital? Natural capital is world’s stocks of natural assets which include geology, soil, air, water and all living things. Natural capital provide for… Continue reading Natural capital and sustainable development

Context: The Reserve Bank of India’s (RBI) Annual Report reveals that almost all demonetized notes have been returned to the central bank. Introduction: The RBI, in its annual report said that as on June 30, 2017, banks had received Rs 15.28 lakh crore, out of the total Rs 15.44 lakh crore worth of old Rs… Continue reading RBI’s Demonetization data report

Context: In an Ease of Business report NITI Aayog said that the government should reform labour laws and make them more flexible to make it easier to do business in the country. Introduction: The report was jointly prepared by NITI Aayog and IDFC Institute. The report was based on an enterprise survey of 3,276 manufacturing… Continue reading Labour reforms in India

Context: The Union Cabinet has approved the setting up of panel of ministers, to decide on consolidation proposals for Public sector banks Introduction: The Finance Ministry is ready to provide capital support for facilitating consolidation among state-owned banks, which are reeling under mounting bad loans With this, the government seeks to consolidate 21 state-owned banks… Continue reading Issue of bank Mergers

Context: The recent report of the Justice B.N. Srikrishna committee, constituted to prepare a road map to make India a hub of international arbitration Introduction: The committee has recommended many changes in Indian arbitration law and institutional mechanisms to promote arbitration in India. The committee has also recommended on bilateral investment treaty (BIT) arbitration. The… Continue reading India plans to re-calibrate the Indian Arbitration Law

Context: The ongoing military stand-off with China in the Himalayan mountain range has once again brought the issue of trade imbalances with that country to the fore. Introduction: A bilateral trade deficit should not be a worry in normal circumstances. What really matters is the overall trade balance rather than its individual components. China is… Continue reading India China Trade deficit triggers uneasiness

Context: NITI Aayog has recently issued a set of three documents which give us a fair idea about where national economic policy is headed in the coming years. Introduction: NITI Aayog has come up with action plan on three sectors – trade, industry and services for creating a well paid jobs. NITI Aayog, after making… Continue reading Niti Ayog to issue blueprint for India’s economic policy

Context: Discussions are at a ‘well-advanced’ stage for Australia’s uranium sale to India, to fuel nuclear power plants to achive energy security in India. Introduction: Australia will start uranium exports to India as soon as possible,  to fuel a long-standing demand from Asia’s third largest economy. India is   looking at environment friendly fuels to power… Continue reading Uranium sale talks at final stage

Context: To ensure large-scale job creation, the freedom to create jobs must be on a par with other freedoms guaranteed by the Constitution. Introduction: The idea of job creation has become a perennial segment of concern for both the general public as well as the policy makers of India.  With the nation’s economy leaping in… Continue reading Freedom to create jobs must be on par with other freedoms

Context: The Government had tasked NITI Aayog to draft the National Energy Policy (NEP) which would reflect the priorities of the Government and also capture the opportunities that have emerged both in energy technologies and markets across the globe Introduction: The National Energy Policy (NEP) aims to chart the way forward to meet the Government’s… Continue reading India continues to pursue its ambitious renewable energy policy

Context: Providing food to the poor or targeted groups at subsidized prices is fully WTO compatible Background It was believed that India and other developing countries were likely to exceed or had already exceeded the 10% subsidy threshold in 2013. The G-33 group of developing countries under the leadership of India submitted a proposal in… Continue reading WTO policies and its impact on food security

Context: The exit of Vishal Sikka as the chief of multinational IT giant Infosys brings forth the issue of corporate governance once again Introduction: Recently, SEBI has constituted a committee on corporate governance under the chairmanship of Uday Kotak last month The committee is expected to submit its report within four months. The SEBI’s norms… Continue reading SEBI formed committee on Corporate Governance

Context: The Sahara Group’s case calls for a thorough probe to reveal all its money laundering dimensions. Introduction: It has been about five years since the Supreme Court ordered the Sahara Group, led by Subrata Roy, to refund money that it borrowed investors without sufficient regulatory clearance. The Securities and Exchange Board of India, was… Continue reading Controlling Money Laundering in India

Context: The government has made public-private partnership (PPP) component mandatory for availing central assistance for new metro projects. Introduction: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday, approved a new metro policy for expanding and regulating metro rail services in cities across India Public private partnership (PPP): Public Private Partnership is a… Continue reading India’s PPP model can revive public investment

Context: The Securities and Exchange Board of India has imposed trading restrictions on 162 listed entities indentified as shell companies. Introduction Recently, SEBI named 331 listed companies as suspected “shell companies” that exist for the purpose of financial manoeuvring. The SEBI, in its upcoming meeting on September 18, is likely to have a detailed discussion… Continue reading Crackdown on Shell Companies

Context: The Union Cabinet chaired by Prime Minister Narendra Modi approved a new metro policy for expanding and regulating metro rail services in cities across India. Introduction: This is the first such policy prepared by the union since metro rail operations began in Delhi in 2002 Presently, metro projects with a total length of 370… Continue reading New Metro Rail Policy gets Cabinet nod

Context: The Centre on Wednesday approved the setting up of single corpus fund, in which all proceeds of secondary and higher education cess will be credited. Introduction: The HRD Ministry will be the nodal agency responsible for the administration and maintenance of the non-lapsable pool that will be known as “Madhyamik and Uchchtar Shiksha Kosh”(MUSK).… Continue reading Cabinet approves corpus fund for education cess proceedings

Context: As India marks 50 years of the Green Revolution this year, the Indian farmers are still facing crisis Introduction: Farming is the most important enterprise in India and farmers are an integral part of our country. To address the agrarian crisis and farmer’s unrest across the country, the government needs to take steps to… Continue reading The challenges of doubling Indian farmers’ incomes in India

Context The Ministry of Defence (MoD) has gone back on its demand for a non-lapsable capital fund for defence procurements. Report The Parliamentary Standing Committee (PSC) on Defense asked the Ministry of Finance to work out the modalities for the creation of such a fund in consultation with the MoD. The Committee would like the… Continue reading Ministry of Finance to work out the modalities for the creation of Defense procurement

Context: Cross-LoC trade continues to be a key confidence building measure between India and Pakistan Introduction: Of late, cross-LoC, trade has been in focus after the National Investigation Agency (NIA) began probing the funding patterns of traders. In October, cross-LoC trade will complete nine years. Irrespective of the negative perception around it, trade continues to… Continue reading Recent trends in India-Pakistan trade

  Context: Services are being more urbanized than manufacturing sector raises immense possibilities of their being a growth driver that can promote inclusive growth in India. Introduction: Service sector is the single largest and fastest growing sector in India contributing more to output and employment. In India, the service sector has developed manifolds since 1991… Continue reading Service sector as an engine for inclusive growth in India

Context: Recently, the Supreme Court has asked the Centre to ensure that States implement key aspects of the Food Security Act. Introduction: Several state governments have not met key requirements in the food security legislation which empower common man in securing subsidized food. Food Ministry data presented to Parliament show that the present system does… Continue reading Connecting food and nutrition security

Context: The Logistics Data Bank (LDB) project, unveiled in July 2016 to make India’s logistics sector more efficient through the use of Information Technology, will soon expand operations to the country’s southern region.  Introduction: The project so far, had covered only the western logistics corridor. The project covers the entire movement of containers through rail… Continue reading Indian logistics industry is at the turning point of its development

Context: The agricultural education system needs to be redefined in India. Introduction: Agricultural education is the teaching of agriculture, natural resources, and land management. The Indian Council of Agriculture Research (ICAR) is the apex body for agriculture education, research and farm extension in India. Need for agriculture education: Education increases knowledge or information and it… Continue reading Redefining agricultural education in changed scenario

Context: The Union government is mulling a revision in the formula to calculate minimum wages that may increase income levels of workers across the country. Introduction: The Central Advisory Committee on Minimum Wages, headed by Labour and Employment Minister  Bandaru Dattatreya, decided to constitute a committee to deliberate the proposed changes in the calculations of… Continue reading Labour ministry forms panel to relook at minimum wage fixation formula

Context: Advancing rights of women farmers can revolutionize the rural ecosystem. Most importantly, if female farmers are provided security of land tenure, they will be officially recognized as farmers and will result in increased productivity and improve household food security and nutrition.  Current Status of Women in Indian Agriculture: The stereotypical image of an Indian… Continue reading A new image for the “Indian farmer”

Context: The government has started framing a new telecom policy by the end of December, 2017. The Centre will consider including a ‘one-nation one-license’ regime in the new telecom policy. India’s telecommunication network: India’s telecommunication network is the second largest in the world by number of telephone users (both fixed and mobile phone). Major sectors of the… Continue reading ‘One Nation, One License’: Center sets for a fresh policy

There have been many instances of turf wars among direct regulators and bodies across the industries in India. For example, the ongoing turf war between the Competition Commission of India (CCI) and the TRAI (Telecom Regulatory Authority of India). Who are the regulatory bodies? A competition regulator or regulator is a government agency, typically a… Continue reading Competition among the regulators

Context NITI Aayog to formulate a roadmap for transition to methanol made from coal, based on the alternative fuel’s use in China Introduction: The Road Transport and Highways Minister Nitin Gadkari on Monday held a high-level stakeholders meeting to deliberate upon a strategy to use methanol as an alternative fuel in automobiles. At a high… Continue reading India towards a methanol economy

Context: Recently, the Ministry of Housing flagged off a new index-The National Housing Bank Residex, designed to track housing price trends in 50 cities across India. Introduction: NHB Residex that captures movements in the prices of residential real estate prices revealed that prices during January-March, 2017 have increased over that of October-December, 2016, in about… Continue reading NHB Residex shows increase in housing prices

Context The report of the Financial Intelligence Unit (FIU), stated that fake notes and cross-border fund transfers in the country’s economic channels doubled in the last fiscal year, leading to the unearthing of over Rs. 560 crore in black money. Finding of the report The report of the FIU, the premier technical investigation wing under… Continue reading The Detection and reporting of suspicious transactions by FIU

Context: India’s financial sector regulators should stop hindering ideas in the financial technology sector and instead opt for a regulatory sandbox approach to nurture innovative financial technology applications, Niti Aayog CEO Amitabh Kant said recently. Financial sector of India – An overview Financial sector is the backbone of any economy and it plays a crucial… Continue reading Financial sector regulator in India

Context A performance audit of India’s private hospitals has revealed that a majority of the institutions is evading tax. The Report The report by the Comptroller and Auditor General (CAG), pointed out that data on ‘non-filers’ of income tax was available only in three states — West Bengal, Assam and Gujarat. The auditors found that… Continue reading Tax Evasion in India

Patent term extension in India Context: A proposal to extend the already 20-year-long patent term for pharmaceuticals is on the negotiation table of the Regional Comprehensive Economic Partnership (RCEP). Introduction: This week, officials from 16 countries gathered in Hyderabad for negotiations related to an expansive trade deal that endangers hard –won public health safeguards in… Continue reading Patent term extension in India