The PLI plan for our automotive sector can accelerate its success

Synopsis: The new PLI scheme will incentivize the industry to move into higher-value-added technologies and thus spur sectoral growth Introduction The Union Cabinet has decided on a major new production-linked incentive (PLI) scheme aimed at reviving and transforming the automotive sector in India. The planned outlay of government funds for the scheme is in excess… Continue reading The PLI plan for our automotive sector can accelerate its success

Reforms in jewellery sector to help achieve export target: Minister

What is the News? The recent reforms in the gems and jewellery industry would help it achieve the $43.75 billion exports target for this fiscal year. About the performance of Gems and Jewellery Sector Gems & Jewellery sector is one of the important sectors of Indian Economy with a contribution of around 7% to GDP,… Continue reading Reforms in jewellery sector to help achieve export target: Minister

Cabinet approves major Reforms in Telecom Sector

Synopsis: Govt has introduced a range of reforms for improving the ailing telecom sector. These reforms were much needed in light of the recent Vodafone Idea crisis resulting in a likely duopoly of Airtel and Jio in India’s telecom space. Introduction The Union Cabinet approved a number of structural and process reforms to rescue the… Continue reading Cabinet approves major Reforms in Telecom Sector

Cabinet clears PLI for auto sector to spur ‘green’, high-tech

What is the News? Government of India has approved Production Linked Incentive (PLI) Scheme for Auto Industry and Drone Components. About PLI Scheme for Auto Industry Aim: To overcome the cost disabilities to the industry for the manufacture of Advanced Automotive Technology products in India.  Eligibility: The scheme is open to existing automotive companies as… Continue reading Cabinet clears PLI for auto sector to spur ‘green’, high-tech

Faltering on privatisation

Synopsis: Despite ambitious disinvestment targets, the pace on this front has ben slow. Govt has tweaked tax laws to change that, but the government needs to approach disinvestment more strategically. Just modifying tax laws would not be enough.  Introduction  Recently government released new policy on strategic disinvestment in central public sector enterprises (CPSEs). The policy intends… Continue reading Faltering on privatisation

Powering ahead in the future

Synopsis: Electric vehicles show great future. But the sellers of two-wheeler are showing reluctance in implementing electric vehicles module. We need to identify and overcome the problems.  Introduction  Regarding two-wheeler electrification in India, things are in the right direction. And their sales in India are likely to at least double in 2021 compared with 2020… Continue reading Powering ahead in the future

Big Lesson From Small Nation: On import substitution

Synopsis: Import substitution cannot deliver “Make in India for the World”. Lessons from Vietnam. Introduction In 2015, India decided to promote mobile phone industry through import substitution. The eventual goal was to make a success of “Make in India for the World”. Though, there has been a significant expansion of domestic production of telephones since… Continue reading Big Lesson From Small Nation: On import substitution

Criticism of the IBC’s recovery record is unwarranted

Synopsis: The Insolvency and Bankruptcy Code (IBC), which was promoted as a panacea to the problem of bad loans, has been attacked as being ineffective at best and counterproductive at worst. It requires a more nuanced debate. Introduction In recent months, a landmark economic reform of the last decade has come under criticism from various… Continue reading Criticism of the IBC’s recovery record is unwarranted

SC urges company law tribunals to clear IBC cases fast

What is the News? The Supreme Court has said that the “judicial delay” was the main reason for the failure of the insolvency regime in India prior to the Insolvency and Bankruptcy Code (IBC),2016 came into force. Hence, it has urged the company law tribunals to “strictly adhere” to the timelines under the IBC and… Continue reading SC urges company law tribunals to clear IBC cases fast

Why Global Automakers are exiting India? – Explained, pointwise

For 7PM Editorial Archives click HERE → Introduction To add to the problems of the Indian automotive industry, another big automaker has announced its exit from India. Ford has decided to stop manufacturing cars in India after failing to find a sustainable path forward. The exit is the latest in the series, after Harley-Davidson announced its withdrawal in Sep… Continue reading Why Global Automakers are exiting India? – Explained, pointwise

The success of the PLI is likely to hinge on how entrepreneurs weigh the risk-reward equation

What is the news? Recently, Cabinet gave approval of a Production Linked Incentive (PLI) scheme for the textile sector that is expressly targeted at the man-made fibre (MMF) and technical textiles segments. In the global level, there was a shift in the consumer preferences and fashion trends which saw MMF surpass cotton as the fibre… Continue reading The success of the PLI is likely to hinge on how entrepreneurs weigh the risk-reward equation

Government approves Production Linked Incentive (PLI) Scheme for Textiles

What is the News? The government of India has approved the Production Linked Incentive (PLI) Scheme for Textiles. Must Read: About Production-Linked Incentive(PLI) Schemes About the PLI Scheme for textiles Objective:  To ​​attract investments in the production of in-demand textile products like man-made fibre (MMF) fabric, garments and technical textiles. To make Indian textiles more… Continue reading Government approves Production Linked Incentive (PLI) Scheme for Textiles

Decoding asset monetisation

Synopsis: Govt recently launched its NMP project. The article throws light on what NMP exactly is and what it is not. Introduction The National Monetisation Pipeline (NMP) is a bold initiative. But we should first understand what the NMP is and what it is not. The NMP is not about the sale of government-owned assets.… Continue reading Decoding asset monetisation

Making them pay: About the regulation of Big techs

Synopsis: A law to regulate app store operators is key to check Big Tech’s monopolising nature. Introduction Recently, South Korea made an amendment to its Telecommunications Business Act. The Act aims to prevent app store operators, such as Google and Apple, from forcing app developers to use their in-store payment systems. It will also check… Continue reading Making them pay: About the regulation of Big techs

The long and the short of the NMP

Synopsis: Pertinent questions, in the light of the recently announced NMP, have been raised in the article. Questions are related to the impact of NMP on ordinary citizens, whether NMP was the only option before the govt, and whether public sector enterprises are actually inefficient. Background Read here: National Monetisation Pipeline (NMP) project – Explained… Continue reading The long and the short of the NMP

Public sector banks and corporate governance

Synopsis: Issues that are hampering the performance of PSBs, consequences and the way forward. What are the issues affecting the performance of PSBs? Delay in appointments of CEO’s and MD’s of PSSBs: In the recent past, after the MD and CEO of Bank of Baroda stepped down, his successor took charge after 100 days. Whereas,… Continue reading Public sector banks and corporate governance

Another IBC fix? (On a Code of Conduct for CoC)

Synopsis: Regulator’s proposal for code of conduct for the Committee of Creditors (CoC) deserves scrutiny. Introduction The Insolvency and Bankruptcy Board of India (IBBI) has issued a discussion paper on the corporate insolvency resolution process and invited comments on its suggestions. What is the issue? CoC is unregulated, since the members of the CoC are… Continue reading Another IBC fix? (On a Code of Conduct for CoC)

National monetization pipeline betrays narrow outlook

Synopsis: Monetisation of assets to generate value is a step in the right direction, but the underlying problems and challenges that led to underutilization of these assets need to be ascertained too. Proper execution of NMP based on a policy which is refined gradually as per the feedback received is the way forward. Background Read… Continue reading National monetization pipeline betrays narrow outlook

Govt sets exports target for textile industry at $100 bn, up from $33 bn

What is the News? The Union Minister for Textiles has asked the textile industry to set an aim to increase textiles exports three times from the present export value of $33 billion to $100 billion of textiles exports. India’s Textile and Apparel Industry:  India is among the world’s largest producers of Textiles and Apparel. The… Continue reading Govt sets exports target for textile industry at $100 bn, up from $33 bn

From Legs to Minds – ” On Software industry in India”

Synopsis: Regulatory simplicity allowed Indian software services and start-up ecosystems to flourish. Hence, to grow, India needs to cut regulatory cholesterol and spend the next 25 years unleashing the entrepreneurial energies of 1.3 billion Indians. Introduction In 1893, during a sea journey to attend the World Parliament of Religions and a Technology Expo, Swami Vivekananda convinced Jamsetji… Continue reading From Legs to Minds – ” On Software industry in India”

Digitalize all supply chains to unlock trade efficiencies

Synopsis: India has risen on the World Bank’s Ease of Doing Business Index from 77 in 2018 to 63 in 2019 across 190 countries. Its 68th rank in “trading across borders” can be improved upon through digitalization. Introduction In the age of the fourth industrial revolution, India must digitalize supply chains to reduce inefficiencies, improve… Continue reading Digitalize all supply chains to unlock trade efficiencies

Chipped & vulnerable: GoI must make public investments to encourage private manufacturing in strategic semiconductor industry

Synopsis: There is an urgent need for India to scale up the manufacturing of semiconductors. Introduction India’s automobile industry is facing a major shortage of semiconductors. The supply situation isn’t expected to ease any time soon. That’s mainly because chip manufacturing is concentrated in a few countries. Why there is a shortage of semiconductors? The… Continue reading Chipped & vulnerable: GoI must make public investments to encourage private manufacturing in strategic semiconductor industry

Our export efforts hold the key to growth in the quarters ahead

Synopsis: India’s growth hope in the immediate future is dependent heavily on exports. What are the challenges that impact export promotion? Issues in remission of duties and taxes on exported products (RODTEP) scheme structuring: Under RODTEP, Steel, pharma, and chemicals get no rebate at all, although many products using these inputs do. This kind of… Continue reading Our export efforts hold the key to growth in the quarters ahead

Is monetising public assets a good idea?

Synopsis: Two experts, viz. Montek Singh Ahluwalia (MS) and Professor Ajay Shah (AS), share their views over Asset Monetisation programme of the government. Background Read here: National Monetisation Pipeline (NMP) project – Explained How can govt go about monetising operational assets? Both experts mention ways in which govt can pursue monetisation of assets: MS AS… Continue reading Is monetising public assets a good idea?

ADIF aims to rank India startup ecosystem in Top 3 globally by 2030

What is the News? The Alliance of Digital India Foundation(ADIF) plans to rank India’s startup ecosystem among the Top 3 globally by 2030, with a focus on finding the right policy framework to drive growth. India’s Startup Ecosystem: India is the third-largest startup ecosystem in the world after the US and China in terms of… Continue reading ADIF aims to rank India startup ecosystem in Top 3 globally by 2030

Integrity of insolvency processes: A tough ask

Source: This post is based on the article “Integrity of insolvency processes: A tough ask” published in Live Mint on 2nd September 2021. Syllabus: GS3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment Relevance:  Role of Insolvency bankruptcy code in maintaining the health of financial institutions. Synopsis: Issues hampering the… Continue reading Integrity of insolvency processes: A tough ask

The truth about asset monetisation

Source: This post is based on the article “The truth about asset monetisation” published in Indian Express on 1st September 2021. Relevance: Resource mobilisation and Investment in Infrastructure Synopsis: Criticism of the government’s plans to lease out assets to private players, raise resources for public investment, is baseless. Criticism of NMP is baseless Arguments have… Continue reading The truth about asset monetisation

Policy harmonization will help our MSMEs create jobs

Source: This post is based on the article “Policy harmonization will help our MSMEs create jobs” published in Business Standard on 1st September 2021. Relevance: e-commerce in India, Flaws in GST structure, challenges faced by MSMEs Synopsis: India’s indirect taxation needs immediate harmonization to put offline and online business transactions on par. Context Only 27%… Continue reading Policy harmonization will help our MSMEs create jobs

What are the new BH series registration plates for vehicles?

Source: This post is based on the article “New BH series registration plates for vehicles” published in Indian Express on 1st September 2021. What is the News? The Ministry of Road Transport and Highways has notified Bharat series of “BH” series of registration to ensure seamless transfer of vehicles across states. What is the Existing system?… Continue reading What are the new BH series registration plates for vehicles?

Making NMP work

Source: This post is based on the following articles published on 31st August 2021: Asset monetization mustn’t end up as a Potemkin show – Livemint A monetization move that doesn’t tick most boxes – The Hindu Making NMP work – Business standard  Relevance: Resource Mobilisation  Synopsis: Challenges in the Implementation of National Monetisation Pipeline (NMP) and suggestions to overcome those challenges.  Is asset… Continue reading Making NMP work

India warns arms cos of action for default in offset commitments

Source: Times of India What is the news? The Government of India has started taking action against foreign armament majors for failure to fulfill their offsets obligations in defence deals. It has threatened to ban a US company and put another 11 firms on watchlist for imposition of penalties. What are offset obligations? In defence… Continue reading India warns arms cos of action for default in offset commitments

It makes sense to extract value from underutilized public assets (On Asset monetisation)

Source: Live Mint Relevance: Resource Mobilisation Synopsis: National Monetisation Pipeline (NMP), should be welcomed. Background Read here: National Monetisation Pipeline Project – Explained, pointwise The Rationale behind Asset Monetisation Additional Fiscal resources for states: Public assets like roadside parking slots, municipal grounds and advertising surfaces and parade grounds of police and defence services remain unused… Continue reading It makes sense to extract value from underutilized public assets (On Asset monetisation)

GoI Plus India Inc (On lack of trust b/w govt & businesses)

Source: Times of India Relevance: Industry-Government partnership Synopsis: No nation became prosperous without trust between government and business. A look at some such events that indicate lack of trust. Context In the past few weeks, a series of events have raised the question of trust between government and business. It brought back unhappy memories of… Continue reading GoI Plus India Inc (On lack of trust b/w govt & businesses)

Government introduces a new registration mark for new vehicles “Bharat series (BH-series)” to facilitate seamless transfer of vehicles

Source: This post is based on the article “Government introduces a new registration mark for new vehicles “Bharat series (BH-series)” to facilitate seamless transfer of vehicles” published in PIB on 28th August 2021. What is the News? The Ministry of Road Transport and Highways has introduced a new registration mark for new vehicles called the Bharat… Continue reading Government introduces a new registration mark for new vehicles “Bharat series (BH-series)” to facilitate seamless transfer of vehicles

NITI Aayog caught in e-com cross hairs

Source: Business Standard What is the news? Confederation of All India Traders (CAIT) has criticized NITI Aayog on its opposition to some of the e-commerce policy rules. In June, the consumer affairs ministry had proposed a range of amendments under the Consumer Protection (E-Commerce) Rules, 2020, to ‘’protect the interests of consumers and encourage fair… Continue reading NITI Aayog caught in e-com cross hairs

Duopoly in telcom will hurt both consumers and govt

Source: Business Standard What is the news? The government is reportedly looking at a relief package for the stressed telecom sector while also exploring ways to allow operators to pay their dues linked to adjusted gross revenue (AGR) over 20 years rather than 10 years currently. Must Read: Two is too few – Issues with telecom sector Preventing a… Continue reading Duopoly in telcom will hurt both consumers and govt

Government prepares plan to hive off surplus land of PSUs (On NMP project)

Source: The Hindu, TOI What is the news? After unveiling the Rs 6-lakh-crore asset monetization program, the government has accelerated efforts to separate surplus land. The government will soon seek Cabinet approval for setting up a specialized entity (special purpose vehicle, or SPV) to undertake such transactions for state-run companies, ministries and departments. The entity… Continue reading Government prepares plan to hive off surplus land of PSUs (On NMP project)

India pips US to rank second in list of most attractive manufacturing hub globally; China first

Source: Indian Express What is the News? The Global Manufacturing Risk Index 2021 has been released. About Global Manufacturing Risk Index: Released by: US-based property consultant Cushman & Wakefield Purpose: To assess and rank the most advantageous locations for global manufacturing among 47 countries in Europe, the Americas and Asia-Pacific (APAC). Parameters: The ranking is… Continue reading India pips US to rank second in list of most attractive manufacturing hub globally; China first

Don’t let the new e-commerce rules ruin innovation

Source: Livemint Relevance: Implications of Consumer Protection (E-Commerce) Rules, 2020. Synopsis: Small internet outlets have flourished lately, but may find their operations hampered by compliance burden under the Consumer Protection (E-Commerce) Rules, 2020.. A brief look at some problematic provisions. Background Read here: Draft ecommerce rules – Explained, pointwise Reason behind increase in online businesses… Continue reading Don’t let the new e-commerce rules ruin innovation

Telcos need three more bold decisions

Source: Business Standard Relevance: Resolving issues plaguing the telecom sector in India Synopsis: Undoing the retrospective tax amendment affecting Vodafone Group and Cairn Energy among others was an excellent move, and proves what the government can do. These moves must now be followed by further policy changes. A brief look at some of them.  Problems that… Continue reading Telcos need three more bold decisions

India remains a very difficult country for dying companies

Source: Live Mint Relevance: Insolvency bankruptcy code and corporate failure Synopsis: The failure of Insolvency bankruptcy code to achieve its intended objectives is dubbed as ‘isomorphic mimicry’ by developmental scholars. What is ‘isomorphic mimicry’? It is the tendency of governments to mimic (copy) other governments’ successes, replicating processes, systems, and even products of the “best… Continue reading India remains a very difficult country for dying companies

India needs an ecosystem that’s conducive to MSME expansion

Source: Live Mint Relevance: Issues related to the growth of MSMEs in India Synopsis: We must adapt our policy settings to favor new opportunities for small businesses if we want them to play a big role in job creation. Context With 65% of India’s population below the age of 35, job generation by micro, small… Continue reading India needs an ecosystem that’s conducive to MSME expansion

What it’ll take to achieve goods exports of $400 billion?

Source: Livemint Relevance: Doubling India’s exports Synopsis: The blueprint for doubling India’s exports has already been crafted 10 years ago. It needs to be adapted to the modern times by incorporating suitable changes. A brief look at some factors that merit attention. Context India has set a target of merchandise exports of $450 billion in… Continue reading What it’ll take to achieve goods exports of $400 billion?

An unworthy Chinese example that India ought not to emulate

Source: Live Mint Relevance: Economic policies of India Synopsis: India shouldn’t become too much restrictive to business by trying to copy recent policy actions of Chinese government. Background China’s crackdown on businesses has been going on steadily and continually. Initially, it was felt that the target was Jack Ma because he dared to challenge the system… Continue reading An unworthy Chinese example that India ought not to emulate

Finance Minister launches the National Monetisation Pipeline

Source: The Hindu, Indian Express, Livemint and PIB What is the News? The Union Minister for Finance has launched the National Monetisation Pipeline. About National Monetisation Pipeline: Prepared by: It was prepared by NITI Aayog in consultation with infrastructure line ministries, based on the mandate for ‘Asset Monetisation’ under Union Budget 2021-22.  Note: Asset monetisation… Continue reading Finance Minister launches the National Monetisation Pipeline

Our flawed e-com policy sends out awful signals

Source: Livemint Relevance: Regulatory regime in India and issues related to it. Synopsis:  India’s regulatory framework for e-commerce needs to be market-friendly because its failure to pass this test will go against long-term economic interests. Introduction: As a developing economy, India’s regulatory ambitions fall short of what defines ‘regulation’. For Further read – Draft e-commerce… Continue reading Our flawed e-com policy sends out awful signals

Govt announces incentive for mills exporting sugar, diverting it to ethanol

Source: PIB Introduction The Government of India is taking proactive measures to boost the export of surplus sugar & diversion of sugar to ethanol. The move is to ensure timely payment of cane dues of sugarcane farmers and to boost the agricultural economy. Measures taken by Government for Sugar Industry: India is the world’s second-largest… Continue reading Govt announces incentive for mills exporting sugar, diverting it to ethanol

How can  the new rebate scheme help exporters? (On RoDTEP scheme)

Source: Livemint What is the news? Recently, the Commerce Ministry released details of new scheme RoDTEP scheme to help exporters to stay competitive and increase exports at a time when there is an increase in demand from developed economies. Background Read here: Govt notifies RoDTEP rates, guidelines How does the new scheme work? The refund… Continue reading How can  the new rebate scheme help exporters? (On RoDTEP scheme)

HAS IBC DELIVERED ON ITS LOFTY PROMISE?

Source: Live Mint Relevance: IBC process is one of the most important aspects of industrial growth. Synopsis: IBC Process has been a mixed bag of achievements and challenges. This article highlights issues and achievements of, and ways to improve the IBC process. Recently, the chairperson of the standing committee on finance, Jayant Sinha informed parliament… Continue reading HAS IBC DELIVERED ON ITS LOFTY PROMISE?

A delayed intervention (On need to exports)

Source: The Hindu What is the news? After delaying by 8 months, the Government has notified the rules and rates under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Based on these, exporters can claim rebates on the taxes paid on their exported items. Must read: RoDTEP scheme Current scenario India is looking… Continue reading A delayed intervention (On need to exports)