Economic Survey (2012-2013)

Mrunal [Economic Survey Ch1] Introduction, GDP FC MC relation ...
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[Economic Survey Ch1] Introduction, GDP FC MC relation (part 1 of 3)

1. 2. 3. 4. 5. 6. 7. 8.
Introduction Why Economic Survey = Boring? Timeframe Link between GDP FC/MC? Why India cant bounce back easily? Crude oil prices Forex Reserve Mock questions
Introduction
Finally economic survey is released. (free download English click me for Hindi click me) For UPSC, economic survey is important, because just like yearbook, this one also provides you with truckload of facts for MCQs, and fodder for descriptive/essay/interview. Even for SBI PO, this is important, because lot of MCQs come from current based economy + fodder necessary for GDPI stage.
Why Economic Survey = Boring?

On HBO, Star movies, they show movie for 15-20 minutes and advertisement for 5 minutes. But on Zee Cinema, 9x etc. channels, they show advertisements for 20 minutes and movie for 5 minutes.= movie is shown in between advertizements. (advertisements are not shown in between movies.) Thats the first reason why economic survey is boring, because it gives facts/fodder in between useless numbers and data. Second reason why economic survey is boring, because the authors assume that youre already aware of the basic economic terms, concepts and the connections in between. Therefore, to enjoy the first chapter, make sure you already know following terms and concepts, if not click on the given links Current Account Deficit Fiscal consolidation Fiscal stimulus http://mrunal.org/2012/05/economy-current-account-deficithow-to.html http://mrunal.org/2012/09/economy-fiscal-deficit-fiscalconsolidation-kelkar.html http://mrunal.org/2011/04/economy-q-fiscal-stimuluspackage.html
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http://mrunal.org/2012/11/economy-fiscal-cliff-meaningFiscal cliff, Sub prime reasons-implications-on-us-and-indian-economycrisis explained.html http://mrunal.org/2012/02/economy-iip-indexGDP calculation of-industrial.html GDP @market price http://mrunal.org/2011/04/economy-q-gdp-at-factor-cost-andand Factor cost market.html http://mrunal.org/2012/08/economy-inflation-demandInflation pull.html Now lets start with the gist of first chapter from Economic Survey. (Ive further subdivided it into three articles, else itll lead to information overload= boredom + frustration.)
Timeframe
2007 Sub prime crisis in USA. Impact felt across the globe. Government of India injects fiscal stimulus. Leads to boost in consumption. Government of India partially withdraws the fiscal stimulus. Because Government wanted to start fiscal consolidation. + rise in global crude prices etc. leads to inflation. RBI increases rates = Interest on EMI / Loans increased = demand for consumer goods decreased. Businessmen find it hard to get loans. + global prices of crude high as usual. Thanks to inflation, People start investing in gold. = less money for business investment + crude price high = CAD = rupees value declines. Economic survey is released. When there was global financial crisis, Government of India and RBI gave monetary and fiscal stimulus (e.g. giving tax-soaps to industries, higher depreciation on commercial vehicles, lowered interest on loans etc.) This lead to increase in consumption. => later inflation. Now to curb the inflation, RBI sharply raised the borrowing rates = again problem, it slowed down the demand.
2008-10
2010-11
2011-12
Feb 2013
Link between GDP FC/MC?

GDP at factor cost (FC)= GDP at market prices MINUS indirect taxes PLUS subsidies. GDP (FC)=GDP(MP) indirect taxes + subsidies.
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in years of sharply higher growth, GDP growth @MP >> GDP at FC. In the years of slowdown, GDP @MP << GDP @FC. Why? Because when there is slowdown, indirect taxes falldown and subsidy burden on Government increases.
Why India cant bounce back easily?

Few years back, America faced the sub-prime crisis and recession. But now it seems to be slowly getting back on track. But if we look @India, it seems as if inflation and slowdown is going to continue forever! Why cant India bounce back quickly? Reasons are following First, International investors and their risk taking. Compared to American Economy, the Indian economy is more exposed this shifts of foreign investors. (the whole GAAR, Vodafone controversy, retrospective taxation, policy paralysis, environmental clearances ruined the mood of foreign investors.) If they pump in money, Indian economy quickly improves, when they pull out money suddenly, our rupee weakens against dollar = crude oil becomes costly.
Second, Indias import bill is strongly tied to the price of oil.
Third, because of ongoing inflation, people prefer to invest in gold. Gold import= CAD = rupee weakens = crude oil import becomes expensive =even more problems.
Rupee weakening?
Suppose on Jan 2012: $1= Rs.50 And on Feb 2012: $1=Rs.60
That means rupee has weakened and dollar has strengthened. But is it good or bad? Theoretically, for Importers = bad. Because now theyve to pay more money to import same quantity of goods. And for Exporters, call centers= good. Because they get more rupee.(even if theyre paid same amount of dollars.) Ok so Rupee weakens = good for exporters. But here is the problem: US, EU still not fully recovered from slowdown, so the demand of Indian goods and services, is not as high as it was few years back. So export sector isnt really doing great. On the other hand, imports are getting more and more expensive, especially crude oil => petrol diesel become expensive= inflation.
Crude oil prices

In the global market, the price of crude oil have increased last year. It could be because of two things 1. The demand of petroleum has increased globally. In a way this is good, because it shows the economy of USA/EU etc slowly getting better. (otherwise they wouldnot be importing so much). So in a few months, the demand of indian exports should increase. = this is a good Development. 2. The crude oil price has increased due to geopolitical reasons (Iran blockade, Libya crisis etc.) If this is the main reason for rise in crude oil price= this is a bad Development. Bottomline is that India cannot take the external environment (recovery of US/EU economies, crude oil politics of middle east) for granted.
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Forex Reserve
Indias foreign exchange reserve, is made up of following components 1. Foreign currency assets 2. Gold 3. SDR and RTP in IMF. As per Economic Survey, Forex reserve is: March 2012 $294.4 January 2013$295.5 As you can see, there is hardly any increase in Forex reserve during this time. Why? One reason is current account deficit (esp. gold+petroleum) second is that foreign investors are not pumping enough money due to policy bottlenecks.
Mock questions
Q1. Which of the following is correct formula? a. b. c. d. GDP (Market Price)=GDP(Factor Cost) + indirect taxes + subsidies. GDP (Market Price)=GDP(Factor Cost) indirect taxes subsidies. GDP (Factor Cost)=GDP(Market Price) + indirect taxes subsidies. GDP (Factor Cost)=GDP(Market Price) indirect taxes + subsidies.
Q2. Which of the following is correct statement? 1. In the period of high growth, GDP (Market Price) is greater than GDP (Factor Cost) 2. During economic slowdown, GDP (Market Price) is less than GDP (Factor Cost) Choice a. b. c. d. Only 1 Only 2 Both None
Q3. Which of the following is/are not a component of Foreign Exchange reserve of India? 1. 2. 3. 4. Gold Foreign currency assets Special drawing rights in IMF Diamonds
Choice
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a. b. c. d.
Only 1 and 3 Only 2 and 2 Only 3 and 4 Only 4
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Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...
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[Economic Survey Ch1] Investment, Savings, Gold Rush, Inflation Indexed Bonds (Part 2 of 3)
1. INVESTMENT
#1: Tight monetary policy #2: Exports declined #3: Policy bottlenecks #4: investment in Valuables DOMESTIC SAVINGS Decline in share-debentures GOLD RUSH Why do people invest in gold? Gold -Current Account Deficit (CAD) How to stop gold rush? Inflation indexed bonds Mock Questions
2. 3. 4.
5.
INVESTMENT
The private sector is the major source of investment in the country. Within the private sector there are two categories of investors 1. Private corporate sector 2. Households (aam aadmi) From both type of investors, less investment is coming. (according to Economic Survey). Why? There are four reasons:
#1: Tight monetary policy

Monetary policy = steps taken by RBI to control money supply. Repo rate = RBI gives short-term loans to its clients (mostly banks) @this rate. So when repo rate =increased= cost of borrowing increased for the banks. And they transfer this cost by increases the final interest rate on car / home / business loans. Between 2010 and 2011 period, the RBI raised the repo rate by 375 basis points (bps). cost of borrowing increased = less people borrowing money to invest in business. Due to this tight monetary policy (+inflation), the Production of consumer durables declined significantly. Because inflation is high. So a familys most income goes in buying milk, petrol, gas, schooling, house rent, electricity etc. Given RBIs tight monetary policy (=increasing repo rate), so home/car loan
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EMI and interest rates also increased.= bike/car purchases decreased.
#2: Exports declined

In the first world countries (US, UK etc.) the impact of recession is still present. So their consumers have less money to spend (compared to previous years.) therefore, demand of indian products in internation market = decreased. This is second reason for lower private investment. (if businessman is not getting export-demand, then he has no rason to invest more money in expanding his operation, buying new warehouse, factories, machinaries etc.) The World Economic Outlook (WEO) Update released by the IMF, says Indias trading partners (US/EU etc.) are growing at low rate, hence Indian exports also declined
#3: Policy bottlenecks

Business projects worth thousands of crores are delayed because Environmental clearance Land acquisition, farmers agitations. municipal permission supply of raw materials Because of ^these, large number of projects are stalled / pending file approvals especially in the projects related to electricity, roads, telecommunication services, steel, real estate, and mining. This reduces IIP. This also discourages new investment. = less incoming dollars = rupee weakens indirectly. This also increases non-performing assets (NPAs). Particularly in textiles, chemicals, iron and steel, food processing, construction, and telecommunications.
#4: investment in Valuables

Due to inflation, sharemarket volatility = nowadays, people invest in valuables. Valuables = Paintings, precious metals, gold, diamond, silver and jewellery carved out of such metals and stones. These are called non-productive investment. (because it just stays in your bank locker / home locker. Money should remain in circulation : from aam-aadmi to bank to businessmen/loans.) So, Overall investment is slowed down because nowadays people are investing in such non-productive investment: mostly in gold.
DOMESTIC SAVINGS
Domestic savings, come from three sources 1. Households 2. private corporate sector
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3. public sector.
Savings Rate
Savings rate = Gross domestic savings divided by GDP @Market price. If we look at the savings rate, Era Domestic Savings rate % 80 and 90s 18-23% Since 2004 onwards>30% Household (aam-aadmi)s savings can be subdivided into
1.Financial savings
1. 2. 3. 4.
2.Physical assets
bank deposits (most of the money saved here) life insurance funds Building, Farmhouse etc. pension and provident funds shares and debentures Usually, most of the household savings go into bank deposits. And Pension provides funds dont get much. However, there has been some upward movement in the share of pension and provident funds during 2008-9 and 2009-10. Why? Because 6th Pay Commission implementation = disposable income of government servants increased. And theyre the significant contributors to these pension / provident funds
Decline in share-debentures
If you look at the data, you can see a trend: Household savings going into sharemarket Era (approx.) 80s 8% 90s 13% 2000s5% So why did it increase in 90s and then suddenly declined? Because in 90s, the sharemarket was less volatile (=it did not go up and down very frequently). And if you invested money, you could get around 20% return on it, per year. Fastforward to 2000s: now share market is very volatile and you get barely 10% return on investment= not good. Thus a combination of lower returns + higher volatility= less savings going into sharemarket.
Implication?
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When you combine above phenomenon with inflation = it is not very attractive to invest in share market. + bank deposits not giving enough returns. So people fall back to the safe investment = gold.
Gold Rush
Demand for gold has been rising worldwide gold prices in international market are calculated in US$. And these gold prices have doubled since 2008. India has traditionally been a major absorber of world gold. Gold has been a combination of investment tool and status symbol in India Gold imports are positively correlated with inflation. (meaning, if inflation increases then gold imports will definitely increase.)
Why do people invest in gold?

1. Share market is volatile (fluctuates a lot). And it doesnt offer attractive return at the moment. 2. To invest in share market / mutual funds, you need PAN CARD + DEMAT Account. Many people still dont have it. = With limited access to financial instruments, financial markets, especially in the rural areas. 3. Rural people dont have awareness about Mutual funds, pension-provident funds etc. 4. Inflation is high. So the profit (return) offered on back savings, fixed deposits, pension-insurance funds = not attractive. 5. When you combine these factors: most people prefer to invest in gold / silver. Thus, rising demand for gold is only a symptom of more fundamental problems in the economy (inflation, lack of financial awareness etc.) Anyways, whats the big deal? let the people invest in gold, after all its their money! The big deal is, if people had invested money in banking / finance sector, then that money could be given to some needy businessmen, hell open / expand his factory = more employment + more production =good for economy. But if people just purchase gold/ silver = that money stops moving. It just sits in their locker = bad for economy. Another problem => gold rush = high CAD.
Gold -Current Account Deficit (CAD)

High CAD = bad, because it weakens the rupee. There are two main villains responsible for Indias current account deficit: 1) gold import 2) crude oil import. Given the energy requirements, we cannot stop / reduce the crude oil import, else itll badly affect economy. Then solution is obviously: reduce gold import. But how?
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How to stop gold rush?

One solution = increase duty on gold import. But problem= people will start smuggling. Then Government will not get any import duty at all. Therefore, Economy survey suggests following things 1. Underlying motive for gold rush = high inflation. So first, Government should curb the inflation. 2. Second problem is lack of financial instruments available to the average citizen, especially in the rural areas. (they dont have PAN card, DEMAT account or knowledge of how to invest in sharemarket/ mutual funds etc.). So Government should take initiatives to increase the financial awareness, financial inclusion. 3. Government should introduce inflation indexed bonds. (then it is more attractive to invest in bonds, otherwise 9% return is not good, if there is 11% inflation!)
Inflation indexed bonds

Normal bonds work in this fashion: 10%, 2017 Meaning you give me Rs.100 right now. Ill pay you Rs.10 as interest every year until 2017 and then Ill return the principle (Rs.100). Ok but what if there get so high inflation in 2017 that even cheapest ballpoint pen costs Rs.500! Then getting back the Rs.100 principle hardly benefits you. Because of this reason, nowadays people prefer to invest in gold rather than in shares/ bonds/ mutual funds etc. But in inflation indexed bonds, the principle is linked with Inflation index. So, if from 2013 to 2017, inflation increased by 30% then you get 30% more principle (=100 original + 30) =Rs.130. this is good because your investment is protected from inflation.
Mock Questions
Q1. Correct statement about Indian economy? a. b. c. d. Gold imports are negatively correlated with inflation Gold imports are inversely correlated with inflation Gold imports are positively correlated with inflation Gold imports are not correlated with inflation.
Q2. Which of the following is/are responsible for excessive gold consumption in India? 1. 2. 3. 4. Inflation. Lack of access or awareness about financial markets. High Volatility in share market. High rate of returns on investment in share market.
Choice a. Only 1 and 2
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b. Only 1, 2 and 3 c. Only 1, 2 and 4 d. All of above. Q3. The Economic Survey suggested that Inflation indexed bonds should be introduced in India. What will be the primary benefit of such bonds? a. b. c. d. Itll help curbing the fiscal deficit. Itll help reducing the NPAs of public sector banks. Itll help decreasing the excessive gold consumption. None of above.
Q4. Incorrect statements about savings in India? a. It comes from three sources: households, private corporate sector and public sector. b. Savings rate has been above 30% in recent years. c. bank deposits, life insurance funds, pension and provident funds, shares and debentures are examples of physical savings. d. None of above.
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Mrunal [Economic Survey Ch1] Agriculture challanges, tax to GDP, ...
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[Economic Survey Ch1] Agriculture challanges, tax to GDP, steps by Government (part 3 of 3)
1. 2. 3. 4. 5. 6. 7. 8.
AGRO and Food Management Agriculture: Problem areas? #1: Land holding #2: Nutritional security #3: Supply Chain Management Kelkar Tax to GDP ratio? Steps Taken by Government
AGRO and Food Management

Agro + allied industries Approx. number Share in Indias GDP 14% (2011-12) Share in total employment58% (2001) The declining share of the agriculture and allied sector in the countrys GDP= this is characteristic of any fast growing economy but that doesnt mean we should ignore agro and pay more attention to manufacturing / service sector. Because fast agricultural growth = vital for jobs, incomes, food security, + curbing food inflation. 11th Five year plan has led to improvement in agricultural performance. Even states that were traditionally not procuring sufficient foodgrains, e.g. Bihar, Madhya Pradesh, Bihar, Chhattisgarh, and West Bengal have showed significant increase.
Agriculture: Problem areas? #1: Land holding

Indian agricultural sector is the domination of small farmers with small sized landholdings. = they cannot afford sophisticated tractors, thrashers, irrigation system etc. Therefore, per hectare Agricultural yields or productivity= very low Government should carry out land reforms, land consolidation, promote cooperative farming etc. to reduced these small sized farms.
#2: Nutritional security

Food security =everybody should get food. But doesnt mean nutritional security. For example, you can feed a poor-child with cheap quality wheat / rice. But for healthy growth of body and mind, you also need various vitamins, fruits,
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vegetables, milk, protein, oil, etc. nutritional items. Malnutrition is a big problem in India. So we dont just need food security, we also need nutritional security. For ensuring nutritional security, Government has to arrange the right amounts of food items in the food basket of the common man. So, Government must give a thrust on horticulture products and protein-rich items, apart from the regular wheat, maize, rice and foodgrains. + invest more money in agricultural research.
#3: Supply Chain Management

Another critical issue is supply-chain management in agricultural marketing in India. Lot of agro-produce gets wasted due to infra problem (bad roads, no cold storage, electricity etc.) Government needs to link wholesale processing, logistics, and retailing with farm-production activitie. Recently the government allowed FDI in multi-retail, = Itll bring for investment in new technology, storage, processing and marketing of agro produce.= less spoilage, better prices for farmers.
Other problems:
soil erosion, soil salinity, waterlogging, excessive use of fertilizers and pesticides overexploitation of groundwater for irrigation. Still dependent on the vagaries of monsoon.
Kelkar
The government appointed a committee headed by Dr Vijay Kelkar to chalk out a roadmap for fiscal consolidation. We already discussed his recommendations in detail. click me Target: Reduce fiscal deficit to 3.0 per cent of GDP in 2016-17. But how? Government will have to control the Expenditure on subsidies. Government will need to increase the domestic prices of petrol, diesel, LPG as per the prevailing in international markets. Government has capped the number of subsidized gas cylinders to nine. ^this will decrease the outgoing money for Government. But that alone, cannot solve the fiscal deficit problem. Government also needs to increase the incoming money.
Tax to GDP ratio?

As the name suggest: It is the Ratio of tax collection against the national gross domestic product.
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From Governments point of view, higher tax to GDP ratio= incoming money is more. Time Tax to GDP ratio% 2007-0811.9 2011-12 9.9 Therefore, if Government wants to achieve fiscal consolidation, it must raise the tax-GDP ratio to above the 11 per cent level. But how? Of course, one way is increase the tax rate like 75% income tax for rich people, 25% income tax for middle class. But then people will feel more compelled to evade tax and / or relocate to some other country where tax rates are low. So, instead of raising the taxes very much, better try to broaden the base and improve the tax collection mechanism. There are two ways to do it 1)GST (for indirect taxes) 2) Direct tax code (direct tax)
Steps Taken by Government

(list not exhaustive) 1. Government has setup CCI: Cabinet Committee on Investments. This Committee is headed by Mohan. Itll fast-track projects more than Rs.1,000 crore. 2. Cabinet has cleared the Land Acquisition and Rehabilitation and Resettlement (LARR) Bill. already discussed click me 3. Government has increased FDI in a number of areas including multibrand retail, power exchanges, and civil aviation. 4. Government is increasing investment in irrigation, storage and cold storage networks = less farm produce wasted during transport. 5. Government has passed The Banking Laws (Amendment) Act 2012. This will strengthen RBI and make way for entry of new banks. (we already saw this in detail. click me). 6. Financial Sector Legislative Reforms Commission is formed. This Commission is examining the laws governing the financial sector and suggest ways of modernizing those laws. 7. Government introduced new External Commercial Borrowing (ECB) scheme for companies in the manufacturing and infrastructure sector. So they can get cheap loans from abroad.
HUMAN DEVELOPMENT
In 12th FYP>> social sector Expenditure, Government aims to spend lot of money on education + health. Nevertheless, Indias expenditure on health as a per cent of GDP is lower than in many other emerging and developed countries.
Poverty removal
As per Tendulkar Committee, the percentage of people living below the poverty line in the country has declined
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Year Approx. population living BPL 2004 37% 2009-1029% In the last few years public expenditure on social programmes increased dramatically. In the Eleventh Plan period nearly 7 lakh crore has been spent on the 15 major flagship programmes. To secure the rights of people, Government made many laws in recent years Act Right to information Act Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) Forest rights act Right to education act Beneficiary? Everybody. Poor rural households. Tribals Children (mostly poor).
But the main problem is: Government money isnot reaching the targeted beneficiaries. There is lot of corruption. Government has come up with solution: Direct benefit transfer (DBT) with the help of the Unique Identification (UID). This concludes the gist of Chapter 1 of Economic Survey. Next chapter, next time. For more articles on economy, visit the Archive @ Mrunal.org/economy
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Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...
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[Economic Survey Ch2] Demographic Dividend, Employment, Labour reforms, gist of

1. Demographic Dividend? 2. Why jobs are not created? 3. Problem#1: MSME
Problem: Bureaucratic procedures Problem: Infra bottlenecks Problem: Getting finance Problems in Debt (borrow) method Problem in Equity (partnership, IPO, shares) finance Labour laws Case#1: downsizing Case #2: Shifting business Rigid Labour laws: Implications? Pro-Worker or Pro-employer? Apprentices Apprentice: Indian scenario Education School Governance Education: recommendations CONSEQUENCES AND CONCLUSION Approach #1: Business as usual Approach #2: Pro-active, Reformist Approach #3: Populist, Anti-risk Mock questions
4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
15.
Demographic Dividend?
In next 35 years, around 70 percent of Indias population will be between the working age of 15 and 59. By 2050Employable people (crores) India 100 Europe 45 USA 27 It means, India will have more number of people in the productive age groups= more incomes=more demand of products= more growth=high GDP. Seems plausible in theory. But hard to do in practice. A larger workforce translates into more GDP only if there are productive jobs for it. If people are given work of digging up wells and ponds (MNREGA), theyre employed but that doesnt lead to significant rise in GDP (compared to if same number of people were given some skill training and job in manufacturing or service sector). So If you really want to tap the demographic dividend, then labour force must go through following transitions: 1. 2. 3. 4. From agriculture to non-agriculture (manufacturing / service sector). from rural to urban from the unorganized sector to the organized. from subsistence self-employment to wage employment.
Why jobs are not created? Problem#1: MSME
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MSME= micro, small, and medium enterprises. MSME is defined as per investment in plant and machinery. Sector-> Goods Services Micro Upto 25 lakh 10 lakh Small 25 lakh to 5 crore.10lakh-2cr Medimum5-10 crore. 2cr-5cr MSME sector employ 80+ million people in 30+ million units across the country. But in the MSME group, most of the firms are small, there are hardly any medium enterprises. Why? Because The regulatory environment plays an important role in the lifecyclebirth, growth, and death of MSMEs Small scale firms more receive tax benefits from various Government schemes. For example If your firm has less than annual 10 lakh Revenue= you dont need to pay service tax. Similarly, less than 1.5 crore annual turnover= you dont have to pay Central excise duty. While medium scale firms have to pay more taxes, have to obey more regulations on pollution, social security of employees etc. For more, check this Table:
That means, if your firm grows from small to medium size = Government benefits reduced but Government regulation increased. So most of the small scale firms dont buy expensive machinery for production. In the short run: owner makes decent profit because there is less investment (in machines) + contract laborers are cheap. In the long run: their productivity remains very low (compared to Chinese or American firms of same size.) Low productivity gives them little incentive to grow, completing the vicious circle.
Problem: Bureaucratic procedures
According to the World Banks Doing Business 2013 data, India ranks 132 out of 185 countries in ease of doing business. Entrepreneurs have to obtain a number of clearances when applying for building/occupancy permits
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and utility connections (gas, electricity, water, pollution control). Theyve to separately visits to various Government offices and applications are not approved without bribes.
Problem: Infra bottlenecks

Lack of quality infrastructure (roads, railways, telecom-internet-electricity connectivity etc.) Big firms are less impacted by such bottlenecks, because they have the cash to create alternatives. For example, if electricity is gone, a big company can install huge diesel generator/ its own thermal plant. So, absence of quality infrastructure increases transaction costs disproportionately for small and medium sized firm. Ok so solution = Government should create quality infrastructure. But there is a problem there too:= land acquisition. However it doesnt mean, Government is not doing anything to improve infrastructure. One of the prominent project is Delhi-Mumbai Industrial Corridor (DMIC). DMIC project worth 90 billion dollars, covering about 17 percent population and 14 percent land in India It extends over seven states and two union territories, viz. Delhi, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Daman and Diu, and Dadra and Nagar Haveli The project goals are to double employment potential in 7 years, triple industrial output in 9 years, quadruple exports from the region in 8-9 years skill-building strategy in DMIC is based on a hub-and-spoke model. There will be one Skill Development Centre in every state with subsidiary institutions linked to it. Curricula will be based on the types of industries located in the region and identified regional strengths. Other infrastructure plans include logistic hubs, feeder roads, power generation facilities, up-gradation of existing ports and airports, developing greenfield ports, environment protection mechanisms, and social infrastructure.
Problem: Getting finance

Suppose you finished cooking/catering course and you wish to start a restaurant/cafeteria. For that, you need initial investment of lets say 30 lakh rupees. But you dont have a single penny in your pocket. So you decide, Ill not borrow even a single rupee from anyone. first Ill work in some other persons hotel/restaurant. Save money and once Ive 30 lakh, Ill open my own restaurant. Problem?= well, depending on your salary (+family expenses), Itll 5-6-15 years to save that much money and by then inflation would have increased (property rents, electricity, milk, vegetables, tea, coffee etc.) so at that time, 30 lakh wont be sufficient to start a restaurant, youll need 50 or 70 lakhs! Thus, most of the time you cant start business by âbove approach. Youve arrange finance from someone else. And we already know there are two ways arrange cash/finance to start a business: first is debt and second is equity. Click me For small scale firms, arranging finance by either way (debt or equity) = headache. Because
Problems in Debt (borrow) method

1. Many small firms have defaulted on loans in the past. Therefore bank officers are often reluctant to approve their loan applications. 2. To prevent ^risk of loan-default, bank might ask for collateral (e.g. property/valuables that bank can attach if you dont pay EMIs) but most small scale entrepreneurs dont have such collateral. Loan application procedures are bureaucratic in nature: theyd ask you lot of documentary proofs (like income tax returns, account books, property papers and so on). But most small scale firms run business informally without maintain lot of paper records.
Problem in Equity (partnership, IPO, shares)

1. Launching IPO = requires lot of paper work, team of CAs, finance experts, lawyers etc. = small scale firms dont have it. 2. In India, Angel investors, venture funds are at a nascent stage and small compared to America. (Their meaning / functions already explained in Debt-Equity article.)
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3. The Indian angle investors and Venture funds prefer to invest in technology and e-commerce related business. So small scale firms (mostly concentrated in manufacturing sector) dont get finance from them either.
Solutions?
A vibrant corporate bond market could help. Even though the MSMEs will typically not be able to issue bonds But large firms and infrastructure projects will be able to access (typically cheaper) bond financing for their long-term projects. So banks will get that much less loan takers from upper end of the pyramid= banks will have more spare cash lying around. Then theyll be tempted to loan that money to small and medium sized firm to earn some profit (interest).
Labour laws
Indias labour regulations have been criticized on many grounds including sheer size and scope. There are 45 different national- and state-level labour legislation in India. Labor laws in India = very rigid. As the size of a factory grows, it increasingly becomes subject to more and more outdated laws. This has hindered the growth of large-scale manufacturing industry. Lets understand this with an example: Suppose youre running a firm with 500 employees, exporting diamond jewelry to USA. But due to recession in USA, the demand of your diamond jewelry has decreased.
Case#1: downsizing
Demand of your companys products is decreased, and there is no way you can increase demand because Americans dont have money, so no matter how much you spend on advertisement, they wont buy more diamond jewelry. On the other hand, Indian consumers prefer gold jewelry instead of diamond. So you cannot increase the demand, then you have to reduce your input costs, else youll start making losses. One way to reduce input cost is downsizing=lay off a few workers, so youve to spent less money on wages. But according to Industrial Disputes Act (IDA), if a firm with more than 100 workers, wants lay off workers, it must get permission of state governments (via Labour Commissioner). While the Industrial dispute act does not prohibit laying off workers but State Governments are often unwilling to grant permission because opposition parties will make an issue out of it saying This Government is anti-worker, anti-poor.
Case #2: Shifting business

Since you cannot lay off workers easily (case#1), you decide to shift the business and use those workers. Instead of diamond jewelry, you decide to make gold jewelry, stop the export oriented business, and concentrate on domestic Indian consumers. But according to the same Industrial disputes Act, if the employer (boss) wants to change the terms and conditions /salary/ job description of workers or if he wants to move workers from one plant to another, then he must get (written) consent of workers. This again increases rigidity. The trade union type leaders will blackmail the employer, Give xyz amount of money else we will not sign the consent papers.
Rigid Labour laws: Implications?

Because of the rigid labor laws, It is very difficult for the sick industry to either shut down, downsize or shift business arena. So Indian businessmen try to bypass such laws by buying some expensive machinery to do to the production. =Industries turn capital intensive rather than labour intensive= less jobs created.
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hiring contractual labour without doing paper work (so industrial disputes act doesnt apply in the first place!) and if there is any raid, theyll simply bribe the officials. + outsourcing non-core activities to even smaller firm and those smaller firms also hire contractual labour without doing paper work. Ultimately these things lead to Roughly 85 per cent of the workforce is engaged in the informal sector. = They dont receive social security benefits, pension, insurance, provident fund disability /maternity benefits, paid leave etc. informal workers are also more vulnerable to violations of basic human rights such as reasonable working conditions and safety at work. With little job security and limited access to safety nets, most of the informally employed remain extremely vulnerable to shocks such as illnesses and loss of income. Workers in informal sector are usually poor and hence they have neither the time, money or knowledge to approach courts to seek justice. Thus informality and poverty are directly linked with each other.
Pro-Worker or Pro-employer?
From above examples, it is clear the Government needs to make labour laws flexible. But when Government tries to reform labour laws, opposition parties and trade unions create lot of hue and cry. Besides, there is always some state Government election after every few months so the ruling party in union Government doesnt want to lose any vote bank. Thats why labour reforms are always put on backburner. Anyways, if and when Government decides to reform labour laws, what should be its form? should it be pro-worker or should it be pro-employer? In most countries, there is a middle path in labour laws= not too pro-worker and not too pro-employer either. Such laws provide for 1. Employer can terminate a worker in case of business distress or for poor worker performance. 2. At the same workers are provided a redressal mechanisms if theyre fired without cause 3. Compensation for severance and unemployment benefits.
Apprentices
Apprentice = Someone who works for an expert in order to learn a trade. For example hawala operator, cricket bookie, running your own liquor and gambling dens etc. Such trades cannot be learned by reading theory from books. Youve to work under a master for many months and years to learn the actual skills. That is called Apprenticeship. The syllabus taught in Indian schools, colleges and polytechnics =outdated. The present Indian education system doesnt produce Work-ready labour force. That gap is filled by the system of Apprenticeship. Apprenticeships are an effective way of ensuring that entry-level workers have the skills required to join the formal workforce by learning on the job and even earning while learning. Several countries have benefited greatly from focused programmes Apprenticeship. For example Japan, US, UK, and Germany. Germany, in particular, has a well-known dual education system that combines classroom/online courses at a vocational school with workplace experience at a company. More than 75 per cent of Germans below the age of 22 have attended an apprenticeship programme.
Apprentice: Indian scenario

Years ago, Government had enacted Apprenticeship Act. But it is outdated and rigid from both employers and workers point of view.
Problem#1: Apprentice ratio

The statutory limit on (regular) worker : apprentice ratio is very strict. Implication: suppose the rules say for a drug company, worker : apprentice ratio cannot be more than 20:1. You recently finished final year exam and now you need an apprenticeship certificate otherwise university wont give you degree for B.Pharm. But the factory nearest to your home already got another apprentice and factory owner cannot take you because his quota is over according to that ratio.
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Ratios are strict because Government feared that businessmen will show their regular workers as apprentice on paper, in order to pay them very low salary. Even for small violations of Apprentice rules, the penalty provisions for companies, are very severe. So no matter how much you beg or request, the factory owner wont take you as apprentice once his quota is over. Thus the whole purpose of apprenticeship system is defeated because of that outdated law.
Problem#2: coverage
Apprentices are only allowed in specified trades: for example Pharmacist, Engineers etc. But majority of graduates are not currently covered under formal Apprenticeships.
Some recommendations
Simpler regulation: A single window mechanism is needed to clear company applications for pan-India apprenticeship programmes. Wider reach: Add more graduation fields in Apprentice Act. company-led apprenticeship programmes, that place employers at the heart of education, can play a powerful role in imparting job-relevant skills and also repairing, preparing, and upgrading the labour force. For example, the duration of apprenticeship training can be allowed to vary across trades and companies. Short-duration programmes (less than 12 months) can be freed from much of the oversight provided they pay minimum wages. Relaxing the rigid requirements on the ratio of apprentices to workers could also accelerate capacity creation Dual system of training: Partnerships between companies and educational institutions should be encouraged Active exchanges: There should be active exchanges and portals, matching prospective apprentices to employers.
Education
Government measures its success in education sector mainly by two numbers: 1. School enrollment. 2. Money spent in mid-day meal scheme If we just look at those two numbers, then everything looks hunky-dory. But does it mean all Indian children are getting quality education? But does it mean all Indian children are getting quality education?
According to ASER Survey-2012 (by NGO Pratham)

1. Among all children enrolled in Std. 8, only 47% could read English sentences. And Of those who could read English words or sentences, barely 60% could convey its meaning in their own language. 2. In class 5, more than 50% students cannot read a class 2 level textbook. 3. In class 5, almost 50% students cannot solve two-digit substraction (e.g. 49-23) 4. In class 5, almost 75% students cannot do division. In rural India as a whole, 75% of kids cannot do simple division. (e.g. 25/5) Interestingly, Mohan has declared the year 2012 as the National Year Of Mathematics to mark the birth anniversary of Indian mathematical genius Srinivasa Ramanujan. Anyways, point is Indian children are bad at maths, English and comprehension (especially in Government school). But There are no bad students, only bad teachers. (says Jackie Chan in Karate Kid) There is no positive relationship between teachers possessing formal teacher training credentials (B.Ed, M.Ed) vs. their teaching caliber. Besides, State Governments treat teachers as contract laborers, paying extremely low salaries to those teaching assistants / vidhya sahayak. Hence there is no incentive for teachers to pour their hearts and minds into child-education. On the other hand, since money is low, it doesnt attract brilliant minds into teaching profession in
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Government schools.
Pedagogy
The default Indian pedagogy (method of teaching) = complete the syllabus of textbook. But it does not reflect the learning levels of children in the classroom, who are considerably further behind where the textbook expects them to be.
School Governance
In Government run schools, there is high rate of teacher absence . The fiscal cost of teacher absence was estimated at around Rs 7,500 crore per year. There is evidence that even modest improvements in governance can yield significant returns.
Education: recommendations
1. If Government improves the monitoring and supervision of its schools, then teacher absence will reduce significantly. 2. Government should make learning outcomes an explicit goal of primary education policy (rather than finishing textbook syllabus). 3. Government should invest in regular and independent high-quality measurement of learning outcomes. 4. Government should motivate teachers by rewarding good performance. 5. Government should Launch a national campaign of supplemental instruction targeted to the current level of learning of children (as opposed to teaching to the textbook) delivered by locally hired teacher assistants, with a goal of reaching minimum absolute standards of learning for all children: There is urgent need for a mission-like focus on delivering universal functional literacy and numeracy that allow children to read to learn. 6. Government should pay urgent attention to issues of teacher attendance, teacher performance measurement, better monitoring and supervision.
CONSEQUENCES AND CONCLUSION

Recent economic history is replete with examples of economies that were supposed to have great potential but ultimately did not achieve rapid economic growth and improvements in standards of living. India could become the next example of it. In India reforms are typically implemented only after there is really big crisis (for example 26/11, or Delhi rape). And that too after long debate and after some sort of political consensus is reached on them. Lets check the possible scenarios:
Approach #1: Business as usual

If Government continues on the current path then effects on Indian society and economy will be as following 1. Some improvement in infrastructure but only slow improvement in education, and no change in institutional structure such as business regulation and labour laws. 2. Some movement from agriculture to low skill services such as construction and household work, but very few quality jobs. 3. GDP growth settles into a comfortable 6-7 per cent, the new normal. Achieving 9-10% will be impossible.
Approach #2: Pro-active, Reformist

If Government seriously implements the necessary reforms then effects on Indian society and economy will be as following 1. The manufacturing sector becomes a training ground for workers, absorbing more students with a middle or high school education.
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2. India moves into niches vacated by China such as semi-skilled manufacturing, even while enhancing its advantage in skilled manufacturing and services 3. India experiences faster and more equitable growth. 4. Social frictions are minimized as both agriculture and manufacturing create better livelihoods.
Approach #3: Populist, Anti-risk

In order to win election, if Government spends all money on populist schemes. It doesnt implement reforms for the fear of opposition (like FDI, labour laws, land acquisition etc.) then effects on Indian society and economy will be as following 1. There will be no improvement in infrastructure, education, or institutions 2. Very few jobs are created outside of agriculture. 3. ^because of that, more people stay in agriculture= Pressure on land will increase + Per capita income will decrease. 4. Small agricultural plots do not provide enough income, nor can they be leased out. 5. When things go really worse (a point is reached where monsoon is bad, farmplots are become extremely small, heavy inflation)villagers will start large-scale migration to overburdened cities. (=problems of slums=unhygienic living conditions=outbreak of some contagious disease, increase in crime etc.) 6. Then Government will come up with some scheme to prevent this large scale migration e.g. Rajiv Gandhi Village mein raho yojana under this scheme, whoever goes back to live in village, will be given monthly Rs.500 and 5 kilos of wheat. Thus strain on government finances increases. (=fiscal deficit=even more problems.) 7. The Income inequality between good service jobs in cities and marginal agricultural jobs in rural areas increases tremendously= rich and poor divide grows even further=social unrest, breeding ground for Naxal elements.
Mock questions
Q1. Which of the following are correct about ASER Survey-2012? 1. It is related to status of University education in India. 2. It is an official survey conducted by Ministry of Human resources and Development. a. b. c. d. Only 1 Only 2 Both None
Q2. Governments classification for Micro, Small or medium enterprise (MSME) is based on: a. b. c. d. Number of workers employed in a firm. Annual profit earned by a firm. Annual taxes paid to Government. Investment in plant and machinery.
Mains
GS1 GS2
Discuss the contribution of workers and trade unions in freedom struggle.
1. Write a note on National Child Labour Policy. 2. Write a note on National Policy on Skill Development
GS3 Examine the need for labour reforms in India. EssayTapping the demographic dividend
Interview
1. ASER survey has highlighted the pathetic status of Indian primary school education. As a district collector, what will you do to improve the situation? 2. Suppose youre the PM of a country whose demographic dividend phase has passed (number of
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people in working age are very low compared to aged). So what new policies, laws will you launch to keep your economy booming? 3. What do you understand by the term Industrial unrest. Can you cite any recent examples of Industrial unrest? 4. Last year a Maruti General manager died following a labour unrest at the factory. Some company decided to leave operations due to labour unrest in Kolkata Port Trust. should trade unions be banned to prevent recurrence of such episodes?
URL to article: http://mrunal.org/2013/03/economic-survey-ch2-demographic-dividend-employmentlabour-reforms-gist-of.html
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Mrunal [Economic Survey Ch3] Fiscal Marksmanship, Tax Buoyancy...
http://mrunal.org/2013/03/economic-survey-ch3-fiscal-marksmanship-...
[Economic Survey Ch3] Fiscal Marksmanship, Tax Buoyancy, 14th Finance Commission
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
Overview What Is Fiscal Marksmanship? Why Poor Fiscal Marksmanship? Steps taken in Budget 2012-13 #3: GAAR (but delayed) #4: SERVICE TAX: negative approach Issues: Tax Buoyancy Issue: COLLECTION RATES Issue: Non-Tax Revenue Issue: SUBSIDIES Public debt 14th finance commission Background: why finance Commission? Finance Commission: structure Terms of reference Way ahead? Mock questions
Overview
We know that when Government spends more money than it earns= leads to fiscal deficit and high level of fiscal deficit = bad for economy. For more details, read the earlier Vijay Kelkar article click me Chapter 3 of economic survey, deals with these issues of public finances and deficits.
What Is Fiscal Marksmanship?

This is a new term introduced by Economic survey. Marksman= an expert shooter. Suppose Government decided that for the given year, 1. 2. 3. 4. our direct tax collection target is xyz cr., our indirect tax collection target is xyz cr., our subsidy bill will be xyz cr., our fiscal deficit will be xyz cr.these are all targets set by Government.
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For the moment, lets concentrate on the fiscal deficit target. From the earlier articles, you know that high level of fiscal deficit is bad for economy. So in 2003, Government had enacted an act called fiscal responsibility and budget Management (FRBM) Act This FRBM act stipulated that Government will reduce its fiscal deficit. The original target was that fiscal deficit should be only 3% of the GDP for the year 2008-09. And similarly Revenue deficit should be 0% of the GDP for the year 2008-09. But actually for 2008-09 the fiscal deficit around 6% of the GDP! (instead of the target of 3%) That means, Governments gunman (finance minister) fired a bullet but instead of hitting 3%, it hit 6%. That means Governments fiscal marksmanship was poor (because they cant hit the target precisely). Now the question comes in mind.
Why Poor Fiscal Marksmanship?

How can Government overshoot the (fiscal deficit) target? Well, fiscal deficit will happen when Governments outgoing money is more than its incoming money. Recall that in 2007, subprime crisis happened in USA and its shocks were felt on every country, including India: export declined, business activity declined.So, Government had to take some initiative to protect Indian
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economy from further damage. Therefore Government decreased excise duty, decreased the service tax + offered many tax incentives to businessmen, to boost demand of Indian products and services within India and abroad. (=incoming money of Government reduced). Thus, Government missed the Revenue collection target (first proof of poor fiscal marksmanship.) On the other hand outgoing money was high because 1. MNREGA and other welfare schemes. (+ the lot of that money didnot go to actual poor people. so such schemes didnot show the desired positive result on the economy.) 2. Subsidies on petrol, diesel, LPG, Urea etc. 3. Since 2009s general election was coming, so Government wanted to woo the farmers. So it gave debt waiver to farmers = again outgoing money increased. Government increased minimum support prices (MSP) to farmers for sugar, wheat etc. In other words, Government overshot (missed) the expenditure target (second proof of poor fiscal marksmanship.) And since Government already missed the first two targets (Revenue collection and Expenditure) so obviously third target (fiscal deficit) was going to be missed. Thus in 2008-09 Government could not show its sharp / precise / accurate fiscal marksmanship. To put this concept in refined words= Government overshot the deficit targets in 2008-09 to obviate the adverse impact of the global financial crisis and to give largesse on the eve of the 2009 general elections. Anyways ^that was the story of 2008-09, but even in 2011-12, Government was showing signs of poor fiscal marksmanship because 1. Policy paralysis in last two years. Combine this with slowdown in Europe=our (export) sector is not performing good, GDP is going down, low IIP=> low tax collection. 2. Disinvestment targets could not be met because markets response was lukewarm. (Meaning Government wanted to sell its shares of some PSU but private players were not interested in buying them @high price). 3. Inflation continued to be above 7 per cent=again higher subsidy payments, lower tax collection. 4. high inflation = people opting for gold-purchase as safe-investment + high crude oil price= CAD increased = rupee weakened against dollar= even more inflation= profit of businessmen declined = less tax collection. 5. In earlier years, Government could make truckload of money through proper auctioning of spectrum and coal mine licenses, but both were ridden with scams and corruption. So when Government tried to auction 2G again in the late 2012 (after supreme courts order), private players werent much interested. 6. Controversies surrounding Vodafone case and GAAR implementation = foreign players felt less confident investing in India. Lately Government has woken up and started firefighting: the increasing of petroldiesel prices, decreasing number of subsidized LPG cylinders, increasing FDI limits in multibrand retail, insurance, aviation, increasing the railway ticket prices, direct cash
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transferthese are all measures to decrease the fiscal deficit (=achieving fiscal consolidation). anyways back to the story:
Steps taken in Budget 2012-13

1. In Budget 2012-13, FM announced that Government will restrict expenditure on central subsidies to under 2 per cent of GDP. (meaning if Indias GDP was 100 billion rupees, then Government will only spend 2 billion or less on various central subsidies on petrol, diesel, urea, PDS). 2. FM introduced the concept of effective Revenue deficit. = Revenue deficit MINUS grants given to states for creation of capital assets. (this means technically, on paper, Governments Revenue deficit will look smaller!)
#3: GAAR (but delayed)

GAAR was already discussed in earlier article, click me This was #EPICFAIL, because led to huge protests from business lobby. Government setup Shome Panel to look into GAAR. Shome says, delay GAAR implementation till 2016. Chindu agrees.
#4: SERVICE TAX: negative approach

Usual approach is: Government would say the service tax on xyz item is xyz%. But in 2012-13: Government introduced a new approach negative list. Here, Government would say xyz items are exempted from service tax payment(e.g. doctor, lawyer)= It means service tax applies on all the remaining services that are mentioned in the Negative list. Service tax=12%* on all services that are not included in the negative list. (rate is same for both 2012 and 2013s budget) Government also implemented service tax on railways (first class or an air conditioned coach) from 1st October 2012. *By the way service tax is 12% but some books/material/websites might say service tax is 12.36%. WHY? Because they include cess on the service tax. Service tax 12.00% 2% educational cess. Meaning tax on tax = 2% of 12%+0.24 1% Senior & Higher Education Cess= 1% of 12% +0.12 Effective service tax =12.36%
#5: IT in IT
To increase the tax collection, Government is making extensive use of information technology is continuing, viz. along with e-filing of income tax returns, various forms, audit reports, and statements of tax deduction at source have been made compatible with electronic filing and computerized centralized processing. This helps checking tax evasion and black money.
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Issues: Tax Buoyancy

A tax is buoyant when revenues increase by more than 1 per cent for a 1 per cent increase in GDP. After the FRBM act, both direct and indirect taxes remained buoyant except in the crisis years (2008-9 and 2009-10). But in 2011-12, the tax buoyancy declined sharply in corporate tax sector. Because high level of inflation decreased the actual profits of corporate sector.
Issue: COLLECTION RATES

It is the ratio of revenue collected from imported items vs the value of imports in a year. Collection rates have decreased last year because 1. petroleum, oil, and lubricants (POL) are expensive in terms of value but Government is levying lower levels of duties on them. 2. Tax exemptions are given on various imported items.
Issue: Non-Tax Revenue

Last year, Government couldnt get sufficient incoming money from non-tax Revenue sources because Market gave lukewarm response to disinvestment. Government was expecting to auctions of telecom spectrum and phase III FM Radio for around 15,000 cr. But it did not work out. As the 2G telecom spectrum auction elicited lukewarm response on account of the high reserve price.
Issue: SUBSIDIES
The Budget for 2011-12 had estimated total expenditure to be contained at 14.0 per cent of GDP but Government also overshot this target due to high global oil prices and subsequent increase of subsidy bill (for oil and fertilizers) = another example of poor fiscal marksmanship. Government should give priority to food subsidy due to extent of malnutrition in the country. The government aims to do this via National Food Security Act. But there is also need to reduce leakages involved in subsidy delivery= Government aims to do this via Direct benefit transfer (DBT) / direct cash transfer.
Public debt
It is further classified into internal (domestic) and external debt Internal debt makes up around 91 per cent of public debt. State governments are not allowed to directly borrow externally hence their entire debt is domestic.
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14th finance commission Background: why finance Commission?

India is a quasi-federal country. Weve union Government, weve state Government. Both have their De Jure heads (President vs Governor), Both have their De Facto (Real) heads (PM vs CM) Both have their separate administrative machinery (central service employees vs state service employees) Both have their taxation powers and so on Point is: Taxation power of state Governments is limited. Majority of taxes paid by the public goes to the Union Government via income tax, corporate tax, service tax, excise duty. So if the Union did not give even single paisa from its pocket to the states, then state Governments cannot survive. (because state Government also need to pay salary to staff, public amnesties and interest on previous borrowings.) Therefore, Constitution of India mandates that Union has to share some of its taxes with the states. But who will decide how much tax money must be shared between union and the states? Ans. Finance Commission. (for more, read financial relations on pg 13.8 to 13.13 in Laxmikanth). Under art. 280, President sets up this Commission every 5 year. Finance CommissionChairman Vijay Kelkar 13th 14th Year 2010-15
Y.V.Reddy, Former RBI Governor2015-20
Finance Commission: structure

1 chairman + 4 members. 1 Chairman = experience of public affairs 4 members need to have following qualifications 1. Serving or retired judges of High Court, or someone who is qualified to become one 2. knowledge of Government finances or accounts, or 3. experience in administration and finance. 4. Special knowledge of economics.
Terms of reference
The 14th finance Commission will look into following matters 1. Distribution of certain taxes between union and state. 2. What principles should Union follow while paying grants-in-aid to states? (from the consolidated fund of India)
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3. What measures should be taken to augment the Consolidated Fund of a states so they can help the panchayats and municipalities. 4. Review the state of finances, deficit, and debt levels of the union and states 5. Give suggestion to maintain a good fiscal environment and equitable growth. 6. Give suggestions to amend the FRBM Act. 7. How much money should be spent for the maintenance of capital assets 8. How to monitoring ^such expenditure? 9. Should Government insulate the pricing of public utility services like drinking water, irrigation, power ,and public transport via through laws? 10. How to make public-sector enterprises competitive and market oriented; 11. Matters related to Disinvestment 12. Should Government giveup non-priority enterprises? 13. Climate change, sustainable economic development 14. What will be the impact of the proposed goods and services tax (GST) on Centre and State? 15. Will GST implementation lead to Revenue loss to States? If yes, then how to compensate that loss? 16. How to arrange money for disaster Management related activities?
Way ahead?
Prolonged fiscal deficit leads to 1. higher real and nominal interest rates, 2. slower growth in capital formation 3. potentially lower the rate of output growth. Therefore Government must stick to the fiscal targets. Although, Government cannot rapidly reduce its outgoing money (expenditure) because 1. Government has to pay interest on earlier borrowings 2. Continued payments on defense, civil service pay and pensions, etc. Thus the annual budget has to maintain a delicate balance between 1. Non-developmental Expenditure that is necessary. 2. development expenditure for inclusive growth.
Mock questions
Q1. What is the correct equation of effective revenue deficit? a. b. c. d. Revenue deficit MINUS grants for creation of capital assets. Revenue deficit PLUS grants for creation of capital assets. Primary deficit plus fiscal deficit. Fiscal deficit MINUS Revenue deficit.
Q2. Find Incorrect statement(s) about service tax? a. The service tax rate was 12% for 2012-13 and increased to 12.36% for 2013-14. b. Railways is exempted from service tax.
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c. Service tax is levied on the items listed in the negative list. d. All of above. Q3. Find Incorrect statement(s) about Finance Commission a. b. c. d. The time frame for 14th finance Commission is from 2010-15 It has 1 chairman and 3 members. One of the member must be a serving or retired judge of Supreme Court. All of above.
Q4. Find Correct statements 1. Major portion of Indias public debt is financed from external sources. 2. The debt of all state Governments is internal. Choice a. b. c. d. Only 1 Only 2 Both None
URL to article: http://mrunal.org/2013/03/economic-survey-ch3-fiscalmarksmanship-tax-buoyancy-14th-finance-commission.html
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Mrunal [Economic Survey Ch4] Inflation, WPI, CPI, monetary polic...
http://mrunal.org/2013/03/economic-survey-ch4-inflation-wpi-cpi-mon...
[Economic Survey Ch4] Inflation, WPI, CPI, monetary policy, RESIDEX gist of
1. Prerequisite 2. How to measure inflation?
WPI CPI WPI vs CPI difference? GDP deflator Steps taken by Government to curb inflation Via import Via bans / coercive measures Via schemes Via Policy/Act Why Govt could not control inflation? Export bans = uncertainty Export bans = CAD Black money and gold purchase FDI and infra= No quick results Environmental clearances Steps taken by RBI to curb inflation CRR rates SLR rates Why RBI couldnt control inflation? Way ahead RESIDEX Mock questions
3.
4.
5.
6. 7. 8.
Prerequisite
To understand this article better, first go through earlier articles on following topics (click on the topic name) 1. WPI calculation 2. GDP deflator 3. CRR, SLR, Repo, reverse repo, LAF and MSF
How to measure inflation?

There are three ways 1. WPI 2. CPI 3. GDP deflator
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WPI
Wholesale price index Compiled by Office of Economic Adviser ->Ministry of Commerce and Industry. Base year 2004 Doesnt cover services. Items are classified into three categories 1. Primary articles 2. Fuel, power, light, lubricants 3. Manufactured products. Earlier Government used to give weekly primary and food inflation data based on the Wholesale Price Index. But this practice has been discontinued since 2012.
CPI
Consumer price index In 2012, the CPI system was reformed Before 2012 There were four subtypes of CPI 1. 2. 3. 4. Agricultural Labourer (AL) Rural Labourer (RL) Industrial Workers (IW) Urban Non-Manual Employees (UNME) First three subtypes of CPI were prepared by Labour Bureau -> Ministry of Labour and Employment Last subtype was prepared by Central Statistical Organisation (CSO) -> Ministry of Statistics and Programme Implementation. Different years for different subtypes. 1. 2. 3. 4. Agri labour=1986 rural labour=1986 Industrial workers=2001 Urban non-manual=1984 Common base year ( 2010) for all three subtypes. After Now only three subtypes of CPI 1. Entire urban population 2. Entire rural population 3. Urban + Rural (consolidate from above two)
Subtypes
Prepared by
All prepared by Central Statistical Organisation (CSO) -> Ministry of Statistics and Programme Implementation
Baseyear
WPI vs CPI difference?
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WPI Compiled by Ministry Includes services? Baseyear Items included Known as Headline inflation? Importance Economic advisor Commerce ministry No 2004 676 Yes
CPI (reformed in 2012) CSO Statistics ministry Yes 2010 200 no
When RBI and Government make policies, they Not much mainly pay attention to this number.
GDP deflator
How and why GDP deflator is calculated? Already explained in earlier article, click me So not going into details in the current article. GDP deflator is calculated by Central Statistical Organisation (CSO)-> Ministry of Statistics and program implementation. GDP deflator =GDP @current price divided by GDP @constant price GDP deflator is the most comprehensive number to measure inflation, but RBI /Government doesnt use it much for policy making because GDP deflator data comes quarterly (and not weekly/monthly basis).
Measures to contain inflation

By How? GovernmentTaxation, Expenditure, export bans etc. RBI Repo, SLR, CRR
Steps taken by Government to curb inflation

Via import
1. Govt reduced import duties for wheat, onions, pulses, and crude palmolein were reduced to zero 2. Govt. allowed duty-free import of white/raw sugar. 3. Govt. imported pulses and edible oils and distributed them at subsidized rate.
Via bans / coercive measures

4. Govt. put ban on onion export for short periods of time whenever required 5. Govt. suspended futures trading in rice, urad, tur, guar gum and guar seed. 6. Govt. banned exports of edible oils (except coconut oil and forest-based oil) and edible oils. 7. Govt. imposed stock limits on certain essential commodities such as pulses, edible oil, and edible oilseeds and rice. 8. Increased excise duty on gold.
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Via schemes
9. Govt. has been giving rice and wheat to poor families at very cheap rate under the Antodyaya Anna Yojana. 10. Govt. allocated huge amount of foodgrain under the targeted PDS (TPDS). 11. government has allocated rice and wheat under the Open Market Sales Scheme (OMSS) 12. direct cash transfer. 13. Introduced Rajiv Gandhi Equity Saving scheme (with tax benefits) to make people invest money in it, rather than in gold.
Via Policy/Act
14. Recently the government permitted FDI in multi-brand retail trading. This will improve logistical facilities connecting farmers with the final consumers and cut down the middlemen. 15. The States of Madhya Pradesh and West Bengal have recently waived the market fee on fruits and vegetables. Such waivers are expected to promote investment private sector in the infrastructure necessary for transports and processing of fruits and vegetables. 16. Budgetary provisions for improving storage and warehousing facilities, creating infrastructure for aquaculture etc.
Why Govt could not control inflation?

From above points, it seems Government did lot of things to reduce inflation. Then why are we not seeing any good results?
Export bans = uncertainty

Because, to fight food inflation, govt. started imposing ban on exporting some food commodities, increased and decreased the duties on import/export as necessary. While this may look a good solution for the short term but in long term, this creates uncertainty for businessmen, farmers. It reduces their incentive to produce more, because theyre not certain whether govt. will allow them to export or not? (for example Sugarcane->sugar, onion etc.) So indirectly, this affects employment and income of people => leads to more inflation.
Export bans = CAD

When Government puts ban on export of xyz item, that means India receives that much less foreign exchange (dollars). So this increases the Current Account deficit (CAD). When CAD increases = rupee weakens against dollar = crude oil become expensive for us = inflation in everything.
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Black money and gold purchase

All Government schemes = leakage, corruption. And corruption =black money. And black money is mostly invested in gold and real estate. So demand of gold forever high= high current account deficit = rupee weakens against dollar= crude oil price increases = petrol/diesel price increases = even more inflation. Government did try to hike excise duty, make PAN cards mandatory for high value gold purchase and even thought of putting bans on gold import. But these moves have been heavily opposed by the jeweler lobby, hence Government has shied away from doing anything radical to stop the gold consumption. Besides a small hike of 2-3% in gold excise duty doesnt prevent those bad guys with black money from buying gold! And Government hasnt done much to stop the Black money / corruption either.
FDI and infra= No quick results

You have read and heard this ten thousand times that FDI in multibrand retail = no middlemen = less inflation in food. And similarly cold storage, and food processing infrastructure= less wastage. But, suppose Government allows wallmart on Monday, that doesnt mean from Tuesday Wallmart will start running and from Wednesday inflation will be gone. All these things take months and years to get file permission, construction, hiring and training employees, setting up supply lines etc.
Environmental clearances
Many coal and mining projects are not cleared due to environmental issues. This has affected the electricity and raw material supply = input cost increased in manufacturing sector=inflation.
Fiscal consolidation
Government is on the path of fiscal consolidation so it increased the prices of petrol, diesel and reduced the number of subsidized LPG cylinders. These moves have increased the inflation.
Steps taken by RBI to curb inflation

Lets do a recap: from SBI manangers point of view CRR SLR Repo Reverse Repo Ive to keep this much cash aside. I cannot loan it to people. I donot earn any interest on this. Ive to invest this much cash in govt. securities, gold and reliable corporate bonds. Ive to pay this much interest rate, IF I take short term loans from RBI. I earn this much interest rate, IF I deposit my money in RBI for short term.
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So what will be the impact on liquidity when RBI changes these rates? Rate When rate is increasedWhen rate is decreased CRR Liquidity decreases Liquidity increases SLR Liquidity decreases Liquidity increases Repo RateLiquidity decreases Liquidity increases Note: RBI doesnt need to change reverse repo rate, because they automatically keep it 1% less than repo rate. (1%= 100 basis points). In winter, the supply of green vegetables is high so their price goes down. But in summer, their supply is low, so price goes high. Same is the link between liquidity and interest rates. When liquidity increases = loan interest rate decreases. When liquidity decreases = loan interest rate increases = harder to get loans for home, car, bike, business. RBI focused its monetary policy on two objectives 1. Control inflation. 2. Facilitate growth. But It has been very difficult to do both these things at the same time. Because if RBI wants to control inflation, then it needed to reduce the liquidity= RBI had to increase repo rate, CRR. But this type of tight monetary policy badly affects both producers (businessmen) and consumers. Why? But when repo rate is increased= liquidity decreased= difficult to get loans for home, car, bike etc.= demand down + difficult for businessmen to get loans = this hurts the businessman and whatever hurts the businessmen also hurt the GDP and employment. To put this in refined words: the tight monetary policy of RBI decreased the flow of credit (loan) to productive sectors of Economy and hence negatively affected the growth. But due to inflationary pressures, RBI followed tight monetary policy during 2010-11. During this period, RBI raised policy rate (repo rate) by 3.75%= repo rate was increased from 4.75 per cent to 8.5 per cent. Check the following chart.
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But this move has backfired: global economy was progressing slow (due to problems in EU, and USA not yet fully recovered) => so, this tight monetary policy actually contributed to a sharper slowdown of Indian economy than anticipated. GDP growth rate fell down from good 9+% to around 5-6%.
CRR rates
Check the chart
As you can see, between 2010-11, here too, RBI kept increasing CRR rates to curb
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inflation. But from 2012 onwards, RBI has started decreasing the CRR.
SLR rates
As you can see, RBI hasnt changed SLR much in last three years.
Why RBI couldnt control inflation?

Were facing inflation because there is mismatch between supply and demand. Supply (of food, gold, houses, everything) is low While demand of those items (particularly food) is high (because population is high, the income levels of public has increased). Now think about this: What can RBI do? It can only increase the interest rates. While increased interest rates may decrease the demand of houses, cars, bikes but it cannot directly decrease the demand of food, milk and other essential commodities. In other words, Interest rates cannot change the dietary habits of people, not at least in the short term. Besides, high interest rates make it difficult for businessmen to borrow = less new projects = less new employment, less GDP. Therefore primary solution to fight Indias inflation =Increase the supply of food items. But this will requie thorough revision of the way govt. treats agriculture, allied activities, food processing and infrastructure. Small farms, disguised unemployment, heavy reliance on monsoon : all these issues must be addressed in comprehensive manner.
Way ahead
For RBI
World Banks report (January 2013) says prices of most of the global commodity prices are expected decrease in 2013 and 14 (except for metals.) However, as per the assessment of RBI, global economic and financial
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conditions are still fragile. So theyre not providing any growth stimulus to the economy. (for example, if situation in Europe and America was good, theyd have been importing a lot more goods and services from India= Indias GDP could increase.) So in that context, even if RBI drastically reduces repo or CRR, that wont do much good to economy.
For Government
tackling the supply side bottlenecks take months and years. So in the mean time poor people must be protected from the inflation. Thats why govt. needs to continue giving welfare schemes and subsidies. But such support must be targeted to the right beneficiaries: thats where UID/Aadhar, Direct cash transfer comes into picture. Other than that, Government needs to continue pushing for fiscal consolidation, deregulation of sugar pricing (as per Rangarajans recommendations), and other policy initiatives. On a side note:
RESIDEX
Rural to urban migration is an inevitable part of economic growth. But when people migrate from rural areas to urban areas, it creates pressure on civic amenities and housing (slums). Year % of Indian population living in Urban areas 195117 2011 30 204050 (expected) Until recently, we did not have an index to capture the prices of residential buildings in urban areas. Hence Residex index was launched in 2007. This index records the changes in the prices of residential buildings. According to the RESIDEX, the housing prices have declined in Hyderabad, Banglore and Jaipur (from 2007 to 2012) but they have increased by more than 100% in Pune, Bhopal and Chennai.
Mock questions
1. Correct statements about WPI? a. It is released by finance ministry b. It classifies items into three categories 1) primary 2) fuel and fodder 3) Manufactured products and services. c. It is calculated using Laspeyres formula. d. None of above 2. Incorrect statements about CPI a. The base year is 2004-05 b. It is calculated by Labour Bureau with the help of NSSO
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3.
4.
5.
6.
7.
c. Both A and B d. Neither A or B. Correct statements a. CPI measures price change in both goods and services. b. WPI measures price change in only in goods but not in services. c. Both A and B d. Neither A or B. What is the formula for GDP deflator? a. GDP at constant price divided by current price b. GDP at current price divided by annual WPI c. WPI divided by CPI d. GDP at current price divided by constant price What is RESIDEX? a. It is a drug to combat swine flu. b. It is a new vaccine for rabies. c. It is an index to capture the prices of residential buildings in urban areas. d. It is an index to capture the prices of residential buildings in both rural and urban areas. Between March 2011 to March 2013, what was the highest Repo rate? a. 9.00 b. 7.25 c. 8.50 d. None of Above Which of the following can be used to measure inflation directly? a. Current Account deficit b. GDP deflator c. Fiscal deficit d. Purchasing power parity
for more articles on economy: visit Mrunal.org/economy
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Mrunal [Economic Survey Ch5] Financial Intermediaries: Capital M...
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- Mrunal - http://mrunal.org -
[Economic Survey Ch5] Financial Intermediaries: Capital Market: External Commercial Borrowing (ECB), AIF, QFI, FII, FDI, FSDC (part 2 of 3)
1. Financial market 2. Primary market: importance? 3. Reform: ECB
What is ECB? Who can borrow? Reforms in ECB? Reform: IDR fungibility What is ADR? What is IDR? IDR: Two way fungibility? Reform: FDI vs FII definition FII inflow increased FII reform? FDI reform? QFI What is Alternative Investment fund (AIF)? 3 types of AIF Why Fin literacy and RGESS? Rajiv Gandhi Equity Savings Scheme (RGESS) FSDC Misc. Reforms MCX-SX CDS IRDA-repo Electronic voting SCOREs Mock Questions
4.
5.
6. 7. 8. 9. 10.
How does an Indian company arrange for money to start new business / expand existing business? Ans. Via debt or equity. From Where can Indian company arrange for money? Ans. Within India 1. Short term funds= Money market 2. Long term funds= Capital market Outside India
ADR, GDR, External commercial borrowing (ECB), foreign currency convertible bonds (FCCB) etc.
For the moment, lets concentrate within India.
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Financial market
Two subtypes
Money market
Capital market
For arranging Short term fundsLong term fund Apart from that, financial market also includes: forex market, commodity market, derivative market, insurance market. But lets pay attention to only capital market for the moment. Within, Capital market: again two subtypes.
Capital market (long term) Primary Market Secondary Market

In common parlance this is known as Share-market. New securities are issued here. The securities issued in primary market, are sold and repurchased here.
This is like a showroom for brand This is like a Mela (fair) for used cars. new cars. Both are controlled by SEBI.
Primary market: importance?
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Primary market helps businessmen (and Government) arrange money for their projects. It also helps investors earn profit on it via interest / dividend. Financial intermediaries come into picture here: they act as middlemen and help investor lend money to borrower (and earn Commission in between). If lot of money in invested in primary market (especially for corporate sector), that means economy is booming. But as per the Economic Survey, Compared to 2011, companies raised less money from primary market via debt and equity in 2012. It means companies are not doing as many new projects / business expansion like they did in 2011. Why? 1) policy paralyses, 2) inflation =less demand of products within India 3) Slowdown in US, EU = less demand of products abroad Now lets take a look at the reforms taken. From abroad Within India IDR fungibility FII, FDI, QFI Financial literacy, REGSS Misc.
External commercial borrowing (ECB)
Reform: ECB What is ECB?

External commercial borrowing As the name suggest: ECB= when Indian company borrows money from external (non-Indian / foreign) sources. Money is borrowed from non-resident lenders. Via bank loans, fixed rate bonds, non-convertible shares, optionally convertible or partially convertible preference shares etc. For minimum average 3 years.
Who can borrow?

Hotel, infra, IT, hospital sector. (But company must have registered itself under Companies Act 1956, in India). Micro Finance Institutions (MFI) can borrow via ECB NGOs, NBFCs, Companies can borrow via ECB, if theyre involved in Microfinance activity. SEZ units
ECB money cannot be used for?

share market or real-estate speculation. Acquiring another company
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ECB: Pros and Cons Pro Today, American and European economy is not performing well, their banks and lenders are not finding local borrowers even at dirt cheap interest rate. So in this scenario, If an Indian company can borrow money from abroad, at a lower interest rate than in India, then whats the harm? Let them do it. Anti
In ECB, the borrower has to repay in foreign currency (usually dollar). So If Rupee sharply weakens dollar (e.g. from 1$=Rs.50 to 1$=Rs.60), then Indian borrower will have to more amount of rupees to repay the same amount of loan he previously took. (because first hell need to convert his Indian rupee income/profit into dollar then repay the loan).
Reforms in ECB?
Government has liberalization in External Commercial Borrowings Policy during 2012-13 Main Beneficiaries of this liberalization = infra companies, SIDBI and NHB. Infrastructure companies can borrow in Chinese currency (Renminbi/RMB) Infrastructure companies can use 25% of the money borrowed via ECB for repaying their previous rupee debts IF they invest 75% of the ECB borrowed money to start new infrastructure projects. Banks as such, are not allowed to borrow via ECB route. But Small Industries Development Bank (SIDBI) can borrow via ECB route and lend that money to micro, small, and medium enterprises (MSME) sector subject to certain conditions. National Housing Bank (NHB)/ Housing Finance Companies can also borrow via ECB and use that money on low cost / affordable housing units.
Infrastructure companies
SIDBI
National housing bank
This list of ECB reform is not exhaustive but for exam oriented preparation- youve to draw a line somewhere hahaha.
Reform: IDR fungibility

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Before going into that, lets look at:
What is ADR?
American Depository receipt. Already explained, just copy pasting from my old article Suppose, Indian Co. wants to raise money from America, by issuing shares in American stock exchange. But then Indian co. will have to maintain accounts according to American standards. To prevent this problem, Indian company gives its shares to American bank. American bank gives that Indian company receipts (called ADR) in return of those shares. Then Indian Co. can trade those ADR receipts in American share market, to raise money. Sound good? Yes, but then Indian company will have to pay dividends to those investors in Dollar currency. Similarly GDR= Global depository receipt
What is IDR?
ADR= American depository receipt = from Americas point of view, it allows a foreign company (e.g. Indian) to raise money from American financial market. Similarly, IDR= Indian depository receipt= from Indias point of view, it allows a foreign company (e.g. American, British) to raise money from Indian financial market.
IDR: Two way fungibility?

First what is fungibility?= ability for mutual substitution. For example, if you borrow Rs.1000 rupee note from someone, you can repay it using two Rs.500 notes or 10 notes of Rs.100. because currency notes are fungible. Similarly, One gold bar weighing 100 gms. Vs. 10 gold bars weighing 10 gms. = easily fungible IF all of them are 24-carat gold, because weight and price wise both sides are same. But gold bars of 22 carat vs 24 carat = not easily fungible because theyll have different price. ADR is two way fungible. Meaning, if youve ADR, you can convert it into the underlying shares of that (foreign) company. As part of financial reforms, Now IDR (Indian depository receipts) are also made Two way fungible.
Reform: FDI vs FII definition

Chindu proposed in Budget speech that We need to remove the ambiguity on what is FDI and what is FII, I propose to follow the international practice:
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if an investor has a stake of 10 per cent or less in a company, it will be treated as FII and, if more than 10%= FDI. Later Chindu formed a panel under Arvind Mayaram for giving clear definitions to FDI and FII.
FII inflow increased

FIIs invest in Indian securities markets based on their perception how much money will I mae? Their perception is influenced by prevailing macroeconomic environment of India The growth potential of the Indian economy Performance of corporate sector in competing countries (such as Brazil, South Africa.) In 2012, FII inflows were around 30 billion dollar. Much of these FII inflows went into equity segment. The increase in FII inflow indicates their confidence in the performance of the Indian economy and Indian market. Compared to previous years, the turnover in share market has increased and volatility has decreased. The economic and political developments in the Euro zone area and United States had their impact on markets around the world including India. fiscal cliff in the US had been resolved, and had a positive impact on the market worldwide including in India. Further, the reform measures recently initiated by the government have been well received by the markets.
FII reform?
In 2012, FII limit for investment in G-Secs (government securities) and corporate bonds =was increased. FII limit (US Billion dollars) G-Sec 25 Corporate bonds51
FDI reform?
Cabinet has approved increase in FDI for Multibrand retail, pension, insurance, aviation, power and broadcasting.
QFI
To put this in crude terms: QFI is a guy who Doesnt live in India Is not an FII
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Doesnt have a sub-account under FII Is not a Foreign Venture Capital Investor.
Year
2011
Reforms taken
Initially this QFI guy was allowed to invest in Indian mutual funds, IF he met the Know your customers norm (KYC). QFI was allowed to directly invest in Indian equity market. (provided theyre from member countries of Financial Action Task Force (FATF).) QFIs from Gulf Cooperation Council (GCC) and European Commission were also allowed to Invest. QFIs have been permitted to invest in debt market, with a total overall ceiling of US$ 1 billion.
2012
What is Alternative Investment fund (AIF)?

An entity that collects money from people, and invests it. But unlike the regular mutual funds, they donot usually involve in the conventional debt-equity share market type investment. And Theyre not covered under SEBIs regulations for mutual funds and collective investment schemes. Such funds / entities are called Alternative Investment fund.
3 types of AIF
SEBI has notified new regulations covering alternate investment funds (AIFs) under three broad categories CategoryNote These funds have positive spillover effects on the economy. E.g. venture capital funds, small and medium enterprises (SME) funds, social venture funds, and infrastructure funds SEBI and Government might give them incentives or concessions. Funds that dont fall under category 1 or 3. They can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day SEBI/Government will not give any specific incentive or concession to them. Funds that have negative externality. They only work to get short-term benefits/speculation.
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E.g Hedge funds. All the alternative investment funds have to register with SEBI.
Why Fin literacy and RGESS?

Government wants to make people buy less gold. Because when Indians buy a lot of gold, it increases our current account deficit> our rupee weakens against dollar >weve to pay more for importing crude oil =petro-diesel price increase= inflation (+bad election publicity for Government). Therefore, Government wants to increase financial literacy among (particularly) middle class and lower middle class folks, make them invest in share market, mutual funds etc. and move away from gold-purchase. So Government needs to generate awareness that investment in capital market is safe and gives you good returns. => Financial literacy / awareness needed. For this, CBSE already included financial literacy related courses in the syllabus. Financial Stability and Development Council (FSDC) also working on forming national policy for financial literacy. But just by making people aware, wont make them invest in capital market. Government needs to offer some carrot to lure them. Thats why Government introduced Rajiv Gandhi Equity Savings scheme- it provides tax benefits and assured returns to FIRST TIME INVESTORS in the equities.
Rajiv Gandhi Equity Savings Scheme (RGESS)

It is a new tax saving scheme. This was announced in Budget 2012. Main purpose of this scheme: attract more (middle class and lower middle class) people to invest in securities market. (and divert them from investing money in gold, which increases current account deficit and creates more problems for Indian economy). Your annual income must be below 10 lakh. This must be your first investment in securities market. E.g. if youve been already investing in sharemarket / Mutual funds, then you dont get tax benefit in this scheme Lock in period of three years. (meaning you cannot take out your money before that). You must purchase approved shares/mutual funds only. For investment upto Rs.50000, you get 50% deduction in income tax. You can invest money in installments. No need to invest Rs.50000 in on go. You dont have to pay tax on dividends paid by the company.
Conditions
Benefit?
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issue/problem in RGESS? To invest in any type of securities (debt or equity), you first need two things 1) PAN card and 2) DEMAT account. Most of the Indians dont have either PAN card or DEMAT account.
FSDC
Government has set up Financial Stability and Development Council (FSDC) in 2010.
Org of FSCD
FM = chairman Heads of financial-sector regulatory authorities (RBI, SEBI etc), Finance Secretary and a few other departments Chief Economic Adviser
What does FSCD Do?

Promote financial literacy (their sub Committee has made draft National Strategy on Financial Education). Promote financial inclusion (get people in banking, pension, insurance net) Increase financial stability Increase inter-regulatory coordination (between RBI, SEBI, IRDA etc) Promoting financial-sector development
Misc. Reforms MCX-SX

SEBI permitted MCX-SX to operate as a full-fledged stock exchange (just like BSE/NSE). Now MCX-SX will directly compete with BSE and NSE, and itll lead to better services, lesser costs for the investors.
CDS
Credit default swap (more explained earlier click me) Mutual funds and Insurance companies can now participate in CDS as users. This will increase liquidity in the corporate bond markets.
IRDA-repo
Insurance Regulatory and Development Authority (IRDA) has permitted insurance companies to participate in the repo market.
Electronic voting
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A public limited company has shareholders. And the company needs to take votes of the shareholders before merger-acquisition, election of new board of directors etc. Earlier this was done through postal ballot. But in 2012, SEBI made rule: voting must be done through electronic means. (this reduces any mischief or foul play and brings more transparency). At the moment, SEBI has made electronic voting is made Compulsory for the top 500 listed companies and more companies will be included soon.
SCOREs
SEBI complaints redress system It is a web portal, where you can file online-complaints to SEBI.
Mock Questions
1. Capital market is madeup of a. Only Primary and Money market b. Only primary and secondary market c. Only money, primary and secondary market d. None of above. 2. New securities are first issued in a. Primary market b. secondary market c. Both A and B d. None of above 3. Correct Statements about ECB? a. Infrastructure companies can borrow money only in dollar currency. b. SIDBI and NHB are allowed to borrow money via ECB route. c. Both A and B d. Neither A or B 4. What is the purpose of ADR? a. Help an American company raise money from within USA b. Help an American company raise money from outside of USA c. Help foreign company raise money from American financial market. d. None of Above 5. What is the function of IDR? a. Help an Indian company raise money from within Indian financial market b. Help a Foreign company raise money from within Indian financial market c. Help an Indian company raise money from abroad. d. None of Above 6. Which of the following Depository receipt has two-way fungibility a. ADR b. IDR c. Neither A or B d. Both A and B 7. Arvind Mayaram panel is associated with a. GAAR b. Fiscal deficit
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8.
9.
10.
11.
12.
c. FDI, FII definitions d. PPP project finance Correct statement about QFI a. It is a sub-account under FII b. Theyre not required to have PAN card c. An Investors from Gulf cooperation council cannot register themselves as QFI d. None of above Correct statement about Alternative Investment Fund (AIF) a. It is regulated under SEBIs mutual fund regulations. b. SEBI classifies AIF into four categories. c. Every AIF is required to get itself registered with RBI d. None of Above Correct Statement about Rajiv Gandhi Equity savings scheme? a. It offers tax deduction to any investor whose income is below Rs.10 lakh b. Dividend income under RGESS is taxable. c. For investment upto Rs.50,000, it provides 100% income tax deduction. d. None of Above Which of the following is a function of Financial Stability and Development Council (FSDC)? a. Controls FDI approvals. b. An organization that aims to increase inter-regulatory coordination and financial literacy. c. Controls external commercial borrowing and current account deficit. d. None of above. SCORES an online portal to register complaints with a. IRDA b. PFRDA c. SEBI d. None of Above
Mains
1. 2 markers a. SCORES b. AIF c. ECB d. IDR 2. 5 markers a. RGESS b. FSDC 3. 12 markers a. Write a note on the recent reforms in the Indian capital market b. What do you understand by External Commercial Borrowing? Briefly discuss the recent liberalization in Indias in External Commercial Borrowings Policy.
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Mrunal [Economic Survey Ch6] Balance of Payments, Forex Reserve...
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[Economic Survey Ch6] Balance of Payments, Forex Reserves, Currency Exchange, NEER, REER
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
What is Balance of Payment? Why BoP = 0 in theory? Convertibility Rupee-Dollar Exchange rate Building up Foreign Exchange Reserves FOREIGN EXCHANGE RESERVES FOREX Reserve: India vs other Why volatility in rupee? How did rupee recover? Exchange Rate of Other Emerging Economies NEER and REER Why is REER important? External Debt FDI Restrictiveness Index (FRI) FDI: defense offset CHALLENGES AND OUTLOOK Mock Question
What is Balance of Payment?

If you want to see a companys incoming and outgoing cash, youve to check its account book. Similarly Balance of Payment (BoP) is the summary / account sheet that shows the cash flow between India and rest of the world. BoP is made up of two parts: Current account and capital account. (As per IMF definition, three parts: Current Account + Capital account+ financial account). Without getting into technical details, just a brief over view: Balance of Payment
Current Account
1. Import, Export (always negative, because we export less and import more oil n gold, hence weve trade deficit.) 2. Income from abroad (interest, dividends paid on Indian investors FDI, FII in USA etc.) 3. Transfer (gift, remittances from NRI to
Capital (and financial) Account

1. Foreign investment in India (FDI, FII, ADR, direct purchase of land, assets). 2. External commercial borrowing, external assistance etc.
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their families etc. always positive for India because of large Diaspora abroad.) Note: current account can be calculated using Visible and invisibles, that was explained in old article on current account deficit click me. Since we want to track the flow of cash, so, whenever American invest in India (via FDI, FII, ADR etc) we add it as (+), and when Indians invest in USA (via FDI, FII, IDR etc.) we add it as (-) and then get the final figure for Foreign investment. Same goes for everything in balance of payment (remittances, External commercial borrowing whatever.) In short, BoP= we are tracking the incoming and outgoing money. For India, current account has been in deficit (negative number) and capital account has been in surplus (positive number). The BoP accounting system is similar to double entry book-keeping. Therefore theoretically, balance in current account and balance in capital account should be same (ignoring the +/- signs). In other words, if there is deficit in current account, there has to be equal surplus in capital account. Why?
Why BoP = 0 in theory?

Assume there are only two countries India (rupees) and USA (dollars). And there are no forex agents or middlemen, taxation, regulation, cricketers, politicians, saah-bahu serials nothing Now Indian importer buys Apple6 phones worth 10 billion US$ from American exporter. Since there is no forex agent, the Indian importer will pay 500 billion Indian rupees to that American exporter. (assuming 1$=50 Rs.) Means that much Rupee currency is gone from Indian system via current account. But that American exporter has no use of Indian rupees! He lives in USA, he cannot even buy a burger from local McDonalds shop using Indian rupees. So what can he do? 1. He can import something else from India (e.g. raw material, steel and plastic for further production of Apple6) = our rupee currency comes back to India via current account. 2. He can invest that Indian currency to setup some factory or joint venture in India (=our rupee currency comes back to India via capital account) 3. He can buy some shares or bonds in India. Again our rupee currency comes back. 4. He can find a 2nd American who wants to import something from India / wants to invest in India. Apple6 guy can sell his rupee currency to that third American fellow @Rs.50=1$ or Rs.49=1$ or Rs.99=1$ (depending on the desperation of that 2nd American fellow). In short, if rupee goes out, it has to come back. (same for dollar, from American point of view). Therefore, current account + capital account = ZERO (balance of Payment), atleast in theory. But in reality, RBI or tax authorities never have complete details of all financial
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transactions and currency exchange rates keep fluctuating. Hence there will be statistical discrepancies, errors and omissions and. So, BoP is expressed as: Current Account + Capital account + Net errors and omissions = 0 (Balance of Payment). In IMF definition, we can express this as Current Account + Capital account + Financial account + balancing item = 0 Ok then does it mean a country can never have surplus (or deficit) in Balance of payment? Well, a country can have TEMPORARY surplus or deficit in BoP. Because, BoP is calculated on quarterly and yearly basis. There is a good chance, that American Apple6 exporter may not invest back all those 500 billion Indian rupees in India within that time-frame. Secondly, Indian Government may put some FDI/FII restrictions so Apple6 exporter (or that third American guy) cannot re-invest in India even if he wants to. But in the long run, system will balance itself. for example Apple exporter will find some fourth American importer and convince him to pay Indian exporter in rupee currency and thus apple guy will get rid of his 500 billion Rupees by exchanging it with that American importers dollar Or the apple exporter will find some NRI living in USA. This NRI wants to send money (dollar earned by working in USA) to his family back in India, (preferably in Indian currency ) so this NRI will be willing to exchange his dollar savings with that Apple exporters rupees. There are many other possibilities and combinations but the point is, in BoP, whatever currency goes out of the country, will come back to the country.
Convertibility
Suppose you want to import a dell computer from USA. And American exporter accepts only payments dollars. If you can easily convert your rupee into dollars, that means Rupee is fully convertible. And rupee is fully convertible as far as Current account transactions are concerned (e.g. import, export, interest, dividends). But rupee is partially convertible for capital account transection. (In crude terms it means, if an Indian wants to buy assets abroad or invest via FDI/FII OR borrow via External commericial borrowing (ECB) he cannot do it beyond the limits prescribed by RBI. (And vice versa e.g. American wants to convert his dollars to rupees to invest in India, then also RBIs limits have to be followed). RBI gets power to do ^this, via FERA and FEMA Acts. 1973: Foreign Exchange Regulations Act, 1973 (FERA). 1997: Tarapore Committee (of RBI), had recommended that India should have full capital account convertibility. (Meaning anyone should be allowed to freely move from local currency into foreign currency and back, without any restrictions by Government or RBI.)
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2002: Government replaced FERA with Foreign Exchange Management Act (FEMA). Although full capital account convertibility is yet not given. Full capital account convertibility has both pros and cons. But thatd require another article. Lets get back to the topic, we are seeing the 6th chapter of Economic Survey: Balance of Payment, exchange rates etc.
Rupee-Dollar Exchange rate

How does Fixed Exchange Rate system work? and how does market based exchange rate system work? = explained in the Bretton woods article. Click me Anyways, lets construct a bogus technically incorrect model to understand the market based exchange rate system, once again: Assume following things There are only two countries in the world India and America. India has rupee currency. Indian farmers dont grow Onions. America doesnt have any currency, they trade using onions. The rate being 1kg onion=Rs.50 First situation: American investor thinks that Indian economy is rising. If we invest in India (FDI/FII), well make good profit. So theyre more eager to convert their onions to Indian rupee currency. So theyd even agree to sell 1kg onions =Rs.45. (and then buy Indian shares/bonds worth Rs.45) Result =Rupee strengthened against onion (dollar). During this time, RBI governor also buys 300 billion kilo onions from the forex and stores these onions in his refrigerator. (Why? Because onions are selling cheap! And why onions are selling cheap? Because there is surge in capital investment in India by American investors.) Ok everything is going nice and smooth. Now add third country to our bogus model: UAE. Second situation: UAE has increased crude oil prices, and they dont accept rupee currency. They also want payment in onions. 1 barrel of crude oil costs 132kg of Onions. India is eager/desperate for oil, because if we dont have crude oil, we cant get petrol, diesel= whole economy will collapse. So India would agree to buy 1kg onion even for Rs.55 (from American or forex agent or whoever is willing to sell his onions). Then India can give that onions to some Sheikh of UAE and import crude oil. Third situation: The Sheikh of UAE gets even greedier, he demands 200kg onions for 1 barrel of crude oil. Now 1kg onion sells for Rs.59, Because those with onion surplus (vendors) know that India likes it or not, itll have to buy onions to pay for the crude oil! Thus, Rupee has weakened against onion (Dollar.) If such situation continues, then there will be huge inflation in India (because crude oil expensive=petrol/diesel expensive = transport expensive= milk/vegetables and everything else transported using petrol/diesel becomes expensive.) Now RBI governor decides to become the hero and save the fall of rupee against onion. So, He loads a few tonnes of onions in his truck and drive it to the forex market. Result: onion supply has increased, price should go down.
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Now onions get little cheaper: 1kg onion =53 Rs. Thus RBIs intervention in the forex market has led to recovery of rupee.
Ok so what do we get from this story?

1. RBIs intervention to buy Foreign exchange during surge in capital investment= leads to build-up of (foreign exchange) reserves, which provides self-insurance against external vulnerability of rupee. 2. When RBI sells its foreign exchange reserves, it stems (halts) the fall of rupee. 3. Higher foreign exchange reserve levels restore investor confidence and may lead to an increase in foreign direct and indirect investment flows= boost in growth and helps bridge the current account deficit.
Building up Foreign Exchange Reserves

Prior to 1991, India followed License-quota-inspector (and suitcase) raj and import substitution strategy. (Beautifully explained class 11 NCERT textbook.) During that era, foreign companies couldnt invest in India. Imported products such as radio / camera/ wristwatches attracted heavy custom duty. (And that led to rise of smugglers and mafias, and the Bollywood movies that romanticized their criminal lives.) On the other hand, thanks to the license-quota-inspector (and suitcase) raj, the private Indian companies werent big or efficient enough to compete in international market so export was also low. Result: during that time incoming money (via export, investment) was very low. Hence RBI couldnt build up huge forex reserve. (when onion supply is low, its prices will be high) Ultimately in 1991, the Forex reverses of India were about to exhaust. Finally India had to pledge its gold to IMF and get loans. Then India had to open up its economy for private and foreign sector investment. Remove the license-quota-inspector raj etc. to boost the incoming flow of dollars and other foreign currencies..all those LPG reforms. (Although suitcase raj still continues, because the Mohans in the system are blinded by totally awesome people like A.Raja.) fast-forward: now weve a trillion dollar economy, our software and automobile companies are globally recognized blah blah blah. But the lesson learnt: RBI should have good foreign exchange reserve. Hence post LPG reforms, RBI has been buying dollars, pound yen etc. from the currency market, whenever FII/FDI inflow is high. Because during such situation, the foreign investors are more eager to get their dollars converted to rupee currency hence rupee is trading at higher rate e.g. 1$=Rs.49 But after global financial crisis, RBI has stopped building forex reserves actively. Nowadays RBI intervenes in the forex market, only to stop the excess volatility (fluctuation) in rupee exchange rate. However, there was a sharp decline in rupee in 2011-12. Then RBI had to sell foreign exchange worth 20 billion dollars. (so demand of foreign currency would decrease and rupee would stop). Similarly in 2012 also RBI had to sell its foreign exchange reserve worth 3
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billion dollars to prevent the fall of rupee. (in June 2012, Rupee had became very weak: 1$=around 57 Rupees. Thanks to RBI and Governments interventions, it came back to the normal 53-54 level at the end of 2012.)
FOREIGN EXCHANGE RESERVES

Indias foreign exchange reserves is made up of 1. Foreign currency assets (FCA) (US dollar, euro, pound sterling, Canadian dollar, Australian dollar and Japanese yen etc.) 2. gold, 3. special drawing rights (SDRs) of IMF 4. Reserve tranche position (RTP) in the International Monetary Fund (IMF) The level of forex reserve is expressed in US dollars. Hence Indias forex reserve declines when US dollar appreciates against major international currencies and vice versa. RBI gains Foreign exchange reserves by buying foreign currency (via intervention in the foreign exchange market Funding from the International Bank for Reconstruction and Development (IBRD), Asian Development Bank (ADB), International Development Association (IDA) etc. aid receipts, interest receipts
FOREX Reserve: India vs other

Country wide- China has the largest forex reserve (3300+ billion USD). India is 8th position (close to 300 Billion USD).
Countries with largest Forex reserves

1. 2. 3. 4. 5. 6. 7. 8. China Japan Russia Switzerland Brazil South Korea Hong Kong India
Why volatility in rupee?

Volatility = Variation in something over the given time. if today SENSEX is 12000 points, tomorrow it goes up by 200 points and day after it goes down by 300 points etc..they we say market is volatile. If morning shifts SSC paper is too easy but evening shifts SSC paper is too damn difficult then we can say SSC paper is volatile.
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Similarly, if there is too much fluctuation in Dollar to rupee exchange rate, we say rupee is volatile. In 2012, the rupee has experienced unusually high volatility. Why?
#1: import-export
Demand for Indian goods and services has declined due to Euro-zone crisis + America hasnt fully recovered. On the other hand, cost of import= very high due to oil and heavy gold import (due to high inflation). Similarly high inflation = raw material / services become costly for the export. If he raises the prices, then his export product becomes less competitive than Cheap China made stuff.
#2: FII
In the total foreign investment in India, majority comes from FII (and not from FDI). FII money is hot, it leaves quickly whenever FII investors feels that Indias market is not giving good returns and or some other xyz countrys market is giving better returns. There are week-to-week variation in such FII inflows and outflows. Hence it leads to changes in rupee-dollar exchange rate.
#3: Dollar is strengthened

US treasury bonds are consider the safest investment. During the peak of Eurozone, Greece crisis, the big investors started pulling out money from Europe and investing it in US treasury bonds. = demand of dollar increased. So other currencies would automatically weaken against dollar.
#4: policy paralysis

For past few years, Indian Government was lazy regarding environmental project clearances, land acquisition, FDI in retail, pension, insurance etc. that has led to foreign investors losing faith in Indian economy= slowdown in FII inflows. (besides Government did not allow more FDI in pension / insurance / retail etc. so FDI inflow did not increase either).
#5: Risk On / Risk off

From the earlier article on debt vs equity, Government bonds = safer than equities (shares). But when an investment is safe= it doesnt offer good returns. When foreign investors feel confident, they display risk on behavior =they invest more in equities, particularly in developing countries. (which are risky but offer more profit). But when foreign investors are not feeling confident, they display risk off behavior, = they usually fall back to investing in US treasury bonds or gold. In India, majority of foreign investment comes from FII (and not FDI)
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and FII investors are more prone to displaying this risk-on/risk-off behavior. They plug in their money quickly, they pull out their money quickly. Thus, Indian rupees exchange rate becomes volatile against Dollar. Therefore, Indian Government needs to inspire and sustain the confidence of foreign investors, to prevent the fall of rupee. RBI intervention in forex market, cannot help beyond a level.
How did rupee recover?

Rupee is weakening against dollar, it means demand of rupee is less than the demand for dollars. So how did RBI and Government fix it?
RBI
Govt.
Govt. allowed FIIs to invest more money in govt.and corporate bonds. Govt. eased the FDI policy for pension, insurance, aviation, multi-brand retail etc. Govt. offered subsidies and tax benefits to exporters.
During 2012, RBI sold around 3 billion dollars from its forex reserves. Oct-12, Rupee recovers, 1$=around 51 rupees. RBI allowed Indian banks to give more interest on Foreign Currency Non-Resident (FCNR) bank accounts. (thus attracting more NRIs to save their dollars in Indian banks).
Exchange Rate of Other Emerging Economies

In 2012, Rupee wasnot the only currency that weakened against dollar. The currencies of other emerging economies, such as Brazilian real, Argentina peso, Russian rouble, and South Africas rand also depreciated against the US dollar. It means dollars demand has increased. In the wake of sovereign debt crisis in the euro zone and due to uncertain global economic environment, more and more investors are preferring to buy US treasury bonds and other securities in USA.
NEER and REER

We keep reading bad headlines that rupee weakened against dollarrupee all time low against dollarand so on. Does it mean, Indian rupee is a really bogus weak and fragile currency? Nope. Because we dont trade only with USA. We dont trade only in terms of Rupee to Dollar exchange. We also trade with many other countries in many other forms of currency. Therefore, if we want to objectively measure Rupees volatility, weve to compare its price fluctuations with multiple currencies (Euro, Yen, Pound etc.) and not just against single Dollar currency. Secondly: 1$=Rs.50 or 1$=Rs.40 that alone doesnt decide the demand of goods
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and services between India and America. This demand also depends on the inflation (both in India and in USA.) NEER and REER index (calculated by RBI), help us here get a clear picture here. First youve to calculate NEER. Then using NEERs, you calculate REER. NEER Nominal Effective Exchange Rate The weighted average of bilateral nominal exchange rates of the home currency in terms of foreign currencies. REER Real Effective Exchange Rate (REER) weighted average of nominal exchange rates, adjusted for inflation.
Why is REER important?

REER captures inflation differentials between India and its major trading partners. REER reflects the degree of external competitiveness of Indian products REER captures movements in cross-currency exchange rates. RBI calculates two REER indices: REER-6 Here Indian rupee is measured against 6 big currencies viz. 1. 2. 3. 4. 5. 6. Dollar Hong Kong dollar Euro Pound sterling Japanese Yen Chinese Renminbi REER-36
As the name suggest, 36 currencies.
Now Indian rupees vs. other currencies (Dec. 2012 data) Just for reference: 1 unit of foreign currency Indonesian Rupiah S.Korean Won Pakistan Rupee Yen Thailand Baht Mexican Peso Chinese Renminbi Brazilian Real Turkish LIRA Worth Rs. 0.006 0.05 0.56 0.65 1.78 4.25 8 26 30
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US Dollar Canadian Dollar Euro SDR of IMF Pound
54 55 71 84 88
External Debt
World Bank has released International Debt Statistics, 2013 It contains the debt numbers for the year 2011. According to those statistics, in 2011 India was in fourth position in terms of absolute external debt stock after China, the Russian Federation and Brazil. At the end of March 2012, Indias external debt stock = 345 billion (near to 17 lakh crore rupees.)
Indias external debt is high because of

Higher NRI deposits (since NRIs are not getting much return on their dollar savings in American banks, they prefer to invest it in India). External Commercial borrowings (by Indian corporates) Corporate borrowers in India and other emerging economies are keen to borrow in foreign currency (dollar and Euro). Because in US/EU right now the market is down, not many loan domestic taker businessmen, hence their banks/ investors dont mind giving loans to foreigners (that is Indian / other Asian businessmen) at very low interest rate and longer EMIs. But such borrowings however, are not always helpful, especially in times of high currency volatility. For example, if Indian businessman had borrowed loans from USA when 1$=49 rupees but after some years, if 1$=57 rupee, then hell have to repay more. This will badly affect not just him but to Indias BoP as well.
FDI Restrictiveness Index (FRI)

Prepared by OECD. A score of 1 indicates a closed economy and 0 indicates openness. China is ranked #1 (=it is the most restrictive country) India is ranked fourth Foreign Direct Investment (FDI) is preferred to the foreign portfolio investments primarily because FDI is expected to bring modern technology, managerial practices and is long term in nature investment. The Government has liberalized FDI norms overtime. As a result, only a handful of sensitive sectors now fall in the prohibited zone and FDI is allowed fully or partially in the rest of the sectors.
FDI: defense offset

At present, 26% FDI is allowed in Indian defense sector. It also requires FIPB approval licensing under Industries (Development & Regulation) Act, 1951 has to follow guidelines on FDI in production of arms & ammunition.
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India needs to open up the defense production sector to get access and ensure transfer of technology. The existing FDI policy for defence sector provides for offsets policy. (meaning the foreign company has to buy or outsource some of its work to local /domestic players. E.g. FDI in multibrand retail, mandates that foreign company must buy 30 percent of the from small-scale industries.) Such offset policy soften the balance of payments impact and/or develop local technical capability. Recently Government revised the offsets policy for defense sector. But still, it has shown no visible direct or indirect benefits h on the domestic Indian defence industry.
CHALLENGES AND OUTLOOK

while capital inflows in India, were sufficient to finance the CAD safely. But majority of the capital flows are via FII (hence volatile)= this has led to financial fragility and is reflected in rupee exchange rate volatility. We cannot significantly increase our exports in the short run because they are dependent upon the recovery and growth of partner countries (US, EU). And this may take time. Therefore our main focus has to be on curbing imports, mainly by making oil prices more market determined (=expensive), and curbing imports of gold. We should put greater emphasis on FDI including opening up sectors further. Finally, external commercial borrowing needs to be monitored carefully.
Misc. facts
Three top countries from where FDI comes to India: Mauritius, Singapore and UK Global Economic Prospects= this report is published by world bank.
Mock Question
1. Which of the following, is not a part of Capital account a. FDI b. FII c. Remittances d. External commercial borrowing 2. Which of the following is not a part of Current account? a. Import b. Export c. External commercial borrowing d. Interest, dividends paid on FII 3. India has deficit in a. Current account b. Capital account c. Both d. None 4. India has surplus in
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5.
6.
7.
8.
9.
10.
11.
12.
13.
a. Current account b. Capital account c. Both d. None Indias official forex reserve doesnt include a. Foreign currency assets (FCA) (US dollar, euro, pound sterling, Canadian dollar, Australian dollar and Japanese yen etc.) b. Gold c. Silver d. Special drawing rights (SDRs) How can RBI build its foreign exchange reserve? a. By Buying foreign currency b. via funding from World Bank, ADB etc. c. Both d. None Which of the following country has second largest forex reserves in the world? a. India b. France c. Japan d. USA Among the countries with largest forex reserves, India ranks a. second b. third c. fifth d. eighth Rupee will strengthen against dollar when a. Government eases FDI policy b. Government raises the ceiling on FII investment c. Both d. None Correct statement a. NEER is calculated by RBI b. REER is calculated by Finance ministry c. both d. none REER captures a. difference in inflation between India and its trading partners b. external competitiveness of Indian products c. Both d. none Which of the following currency is not part of REER-6 calculation? a. Hong Kong Dollar b. Japanese Yen c. Pound Sterling d. Canadian Dollar Incorrect Match a. S.Korea: won b. Mexico: Peso c. Argentina: Peso
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d. S.Africa: Baht 14. Which of the following is not released by World Bank? a. International Debt Statistics, 2013 b. FDI Restrictiveness Index c. Global Economic Prospects d. All of Above 15. FDI Restrictiveness Index is released by a. IMF b. ADB c. OECD d. World Bank 16. Majority of FDI to India, comes from a. Mauritius b. Germany c. USA d. None of above
URL to article: http://mrunal.org/2013/04/economic-survey-ch6-balanceof-payments-forex-reserves-currency-exchange-neer-reer.html Posted By Mrunal On 23/04/2013 @ 23:48 In the category Economy
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Mrunal [Economic Survey Ch7] International Trade, FTA, PTA, AS...
http://mrunal.org/2013/04/economic-survey-ch7-international-trade-fta...
[Economic Survey Ch7] International Trade, FTA, PTA, ASIDE, E-BRC, CEPA vs CECA Difference Explained
1. 2. 3. 4. 5. 6. 7.
Baltic Dry Index (BDI) Indias Chief import exports Market Diversification Top three trading partners Trade surplus / deficit? WTO Negotiations and India Trade agreements 1. PTA 2. FTA 3. Customs Union 4. Common Market 5. Economic union 6. CEPA vs CECA Indias trade agreements Trade agreements: Recent development 1. Problem Areas: Export 2. Problem Areas: Ease of Doing business Measures to improve trade? 1. Foreign Trade Policy annual supplement 2013 2. Salient Features FTP Annual Supplement 2013 3. E-BRC 4. ASIDE scheme 5. Towns of Export Excellence 6. Interest Subvention 7. Special Economic Zones 8. VKGuy 9. RBIs measures 10. Anti-Dumping Chindus budget speech (2013): Foreign Trade 1. CAD worrysome 2. To boost trade 3. Taxation: Export 4. Coal dependence 5. IT What is countervailing duty (CVD)? Conclusion Important Summits Trade Blocs/ Regional Groups Mock Question
8. 9.
10.
11.
12. 13. 14. 15. 16.
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Baltic Dry Index (BDI)

London based Baltic Exchange, releases this index number on daily basis. It measures changes the cost to transport raw materials by sea. If Baltic Dry index number increases = more raw material is getting shipped= world economy is doing good (and will do good). If Baltic Dry index number decreases = there is decrease in export of raw material / pre-production items= something bad is about to happen with world economy. In the recent times, BDI was highest in 2008 and then started falling. There was a small rise in BDI index during Nov.2012, but still it is nowhere near to the high level of 2008. Meaning, world economy hasnt yet recovered from the fallout in US and EU.
Indias Chief import exports

Import 1. 2. 3. 4. 5. Petroleum Gold Electronic goods Pearls, precious stones Machinery except electronics Export 1. 2. 3. 4. Petroleum (crude and products) Gems and jewelry Transport equipment, machinery Drugs, pharmaceuticals, chemicals
Âs per Commerce chapter India 2013 (Yearbook.) Compositional changes in Indias export basket have been taking place over the years. The share of manufacturing exports fell drastically, mainly due to the fall in shares of traditional items like textiles and leather and leather manufactures even though the share of engineering goods and chemicals and related products increased. The rise or fall in Indias export depends mainly on following factors World growth Trading partners growth Exchange rates
Market Diversification
India has been fairly successful in diversifying its export markets from developed countries like the US and Europe to Asia and Africa This has helped us get reduce the damage from global crisis of 2008 and the recent global slowdown. Region-wise, while Indias exports to Europe and America have declined, its exports to Asia and Africa have increased
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Top three trading partners

In recent years, the top three trading partners of India = US, UAE, China (whoever their rank /position keeps changing like in the game of musical chairs). For 2011-12: first is China, second is UAE and third is USA. (2012-13 data yet to come)
Trade surplus / deficit?

Indias trade deficit = 10% of GDP. This is one of the highest in the world, and hence very disturbing. As per 2011-12 data, Countrywide, India has Trade surplus with 1. UAE (this turned negative in 2012 though) 2. USA, 3. Singapore 4. Hong Kong. Trade deficit with
1. China 2. Switzerland (mainly due to gold imports)
WTO Negotiations and India

Basics of WTO explained: http://mrunal.org/2012/05/wto-doha-made-easy.html Pascal Lamy= Chief of WTO.(update: Roberto Azevedo, a top Brazilian trade diplomat, will replace Pascal Lamy as the head of the WTO in September 2013) In 2001, WTO started Doha Round of trade negotiations. (Doha is the capital and chief port of Qatar) Doha negotiations are still unfinished due to differences among members on various issues. Since multilateral trade negotiations (WTO) are stalled/pending, the regional trading agreements are on rise.
Trade agreements
What? Preferential trade agreements lower customs duty on the products originating from the member countries. Level of integration
PTA
shallow
FTA
Free Trade Agreements It is a special case of PTA where all tariff and non-tariff barriers are abolished Shallow free access is allowed to the products of member countries.
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Example NAFTA (among Mexico, US and Canada). A Customs Union moves beyond a free trade area by establishing a common external tariff on all trade between, members and non-members. Shallow Customs Unions typically contain mechanisms to redistribute tariff revenue among members Example: Mercosur free flow labour, capital, and output (goods/services) among the members. Example, SICA (in Central America) members share a common currency and macro-economic policies (Example European Union). Example, European Union.
Customs Union
Common Market
Deep
Economic union CEPA vs CECA
deep
Both are examples of Free trade agreements.
CECA
Comprehensive Economic Cooperation Agreement Reduce the tariffs (custom/import duties). Countries sign CECA first and then gradually move towards CEPA like agreement. Example, India has CECA with 1. Malaysia 2. Singapore 3. ASEAN (under negotiation)
CEPA
Comprehensive Economic partnership Agreement Reduce tariffs + cooperation in trade in services, investment. = wider scope. Example, India has CEPA With 1. Japan 2. South Korea 3. Sri Lanka (under negotiation)
Indias trade agreements

So far, India has signed 10 free trade agreements (FTAs) and 5 preferential trade agreements (PTAs) and these FTAs/PTAs are already in force.
FTA/PTA: Already concluded
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10 FTA with
1. Sri lanka 2. SAFTA (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and Maldives) 3. Nepal 4. Bhutan 5. Thailand, + early harvest Scheme (EHS) 6. Singapore (CECA) 7. ASEAN (CECA) 8. S.Korea: CEPA 9. Japan: CEPA 10. Malaysia: CEPA
5 PTA with
1. Asia Pacific Trade Agrment (APTA): Bangladesh, China, India, S.Korea, Sri Lanka 2. Global system of trade preferences (GSTP) 3. Afghanistan 4. MERCOSUR 5. Chile
âs per commerce chapter, India 2013 (Yearbook). Further, India is currently negotiating 17 FTAs, including review/expansion of some of the existing ones. Issue: Government needs to review the inverted duty structure under the IndiaThailand FTA. Because finished jewelry imports from Thailand are cheaper than primary gold (raw material) available in India!
Trade agreements: Recent development

Signed and came into force.South Asia Free Trade AreaUnder SAFTA, India has granted zero basic custom duty to all LDCs, viz. Afghanistan, Bangladesh, Bhutan, and Maldives, on all items, except alcohol and tobacco products.
SAFTA
India Thailand Signed but negotiations still on. FTA India-ASEAN CECA
Signed, broader framework already in force. Minor details remain to be negotiated. Regional Comprehensive Economic Partnership (RCEP) Agreement among ASEAN + 6 (Australia, China, India, Japan, Korea, and New Zealand). During 20th ASEAN summit in Phnom Penh Cambodia (in 2012), the ASEAN states agreed to move towards this agreement. Itll provide economic partnership among ASEAN + its FTA partners. RCEP will cover trade in goods, services, IPR, dispute settlement etc.
RECP among ASEAN+6
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India-EU
Broad based trade and investment agreement. Negotiations still going on. Global System of Trade Preferences among Developing Countries (GSTP) It is a preferential trade agreement to increase trade between developing countries in the framework of the UNCTAD (United Nations Conference on Trade and Development). India has unilaterally offered special concessions to Least developed countries under this agreement. Cabinet approved implementing Indias schedule of concessions under GSPT. India has also unilaterally offered special concessions to LDC In Nov. 2012, India and Japan signed a pact to enable Japan to import rare earth minerals from India. (This will help reduce Japans reliance on China for rare earth minerals). Rare earth minerals are important for high-tech electronics, mobile phones and hybrid cars, missile guidance systems etc.
GSTP
Japan
Problem Areas: Export

Jawaharlal Nehru Port Trust (JNPT) Port at Mumbai, entry gates closing prematurely resulting in export consignments being dumped in the buffer yard at a very high cost and delay in shipments
Problem Areas: Ease of Doing business

Ease of doing business index is an index created by the World Bank. India ranks 132. (Singapore 1st) India requires 9 export documents to be cleared, while China needs 8, with good practice economies like France needing 2. Time to export is 16 days for India and five for Denmark. On an, average an Indian exporter is required to sign at about 130 places to complete an export transaction! If we want to increase our exports, then Government must reduce these procedures and costs need to the barest minimum.
Measures to improve trade?

Indias foreign trade policy covers the period of 2009-14. Under that, Commerce Ministry (and not finance ministry) releases Annual supplement to foreign trade policy every year.
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2012: Government has reduced the import duty on various capital goods/ machinery required for fertilizer, mining, infrastructure, horticulture projects etc. Support for export of green technology products Incentives for labour intensive industries, North East, agriculture etc.
Foreign Trade Policy annual supplement 2013

Released in April 2013, by Ministry of Commerce, Industry and Textiles Although Government did not launch any new scheme in it But the existing schemes were modified to provide for more relaxations and benefits to importers who are also exporters.
Salient Features FTP Annual Supplement 2013

1. 2. 3. 4. 5. 6. 7. 8. 9. Reduced Minimum land area requirement for SEZ, by half No minimum land requirement for settingup IT SEZ Permitted sale and transfer of units inside SEZ. Zero Duty Export Promotion Capital Goods Scheme Government will give 2% Interest Subvention Scheme for more sectors. (upto 31st March 2014) Duty Credit Scrips issued under Focus Market Scheme, Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana(VKGUY) can be used for payment of service tax. Import of cars/vehicles is permitted through designated ports only. Now import of cars/vehicles would also be allowed at Faridabad and Ennore Port (TN) System for online issuance of Registration Certificate for export of Cotton, Cotton Yarn, Non Basmati Rice, Wheat and Sugar.
E-BRC
The exporter will not be required to make any request to the bank for issuance of a bank export and realization certificate (BRC). Thus their time and money will be saved. For electronic transmission of foreign exchange realization from the respective banks to the Directorate General of Foreign Trade (DGFT) server on a daily basis.
ASIDE scheme
Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme It provides assistance to State and union territories to create infrastructure for export Development. Top 5 exporter states in India (also top-5 in terms of ASIDE allocation): Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh. (Why? Think about the geographical, social, political, economic factors).
Towns of Export Excellence
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These get more attention / funds under ASIDE scheme and other schemes of commerce ministry for boosting exports. year Place 1. Abad Textiles 2012 2. Kolhapur 3. Shaharanpur Handicraft 4. Morbi 2013 5. Gurgaon Apparel Ceramic Sector
^this list in not exhaustive. Ive only listed the new towns of export excellence under 2012 and 2013s annual supplements to foreign trade policy. But if and when youre preparing for UPSC interview, dig all the export excellence towns in your home state.
Interest Subvention
Earlier Government gave 2% interest subvention on handlooms, handicrafts, carpets, and SMEs This scheme has been extended to labor-intensive sectors viz. toys, sports goods, processed agricultural products, and readymade garments. Scheme is applicable upto 31 March 2014.
Special Economic Zones

Asias first Export processing zone (EPZ) was setup in Kandla, Gujarat, 1965 Special Economic Zones (SEZ) Act, enacted in 2005 and and Rules were notified in February 2006. Government has given formal approvals to setup 579 SEZs, of which 384 have been notified. As a whole, SEZs have provided employment to more than 9 lakh people. 100 per cent FDI is allowed in SEZs through the automatic route Problem area: land acquisition. (some of that is addressed under the 2013s annual supplement to Foreign trade policy.)
VKGuy
Vishesh Krishi and Gram Udyog Yojana (VKGUY) To promote the export of produce from agro, minor forest, gram udhyog etc.
RBIs measures
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RBI increased ceilings for External Commercial Borrowings (ECBs) RBI allowed the banks to determine their interest rates on loans to exporters (in foreign currency).
Anti-Dumping
Directorate General of Anti-dumping and Allied Duties (DGAD) has initiated 10 fresh cases. Against China PR, the European Union, South Korea, Malaysia, Mexico, Taiwan, Thailand, Turkey, Saudi Arabia, and the USA. DGAD falls under Commerce Ministry.
Chindus budget speech (2013): Foreign Trade CAD worrysome

India is part of the global economy: our exports and imports amount to 43 percent of GDP But My greater worry is the current account deficit (CAD). The CAD continues to be high mainly because of 1. our excessive dependence on oil imports, 2. the high volume of coal imports, 3. our passion for gold 4. slow down in exports. This year, and perhaps next year too, we have to find over USD 75 billion to finance the CAD. (To finance Current Account deficit) , there are only three ways before us: 1. FDI 2. FII 3. External Commercial Borrowing (ECB). That is why I have been at pains to state over and over again that India, at the present juncture, does not have the choice between welcoming and spurning foreign investment. If I may be frank, foreign investment is an imperative. What we can do is to encourage foreign investment that is consistent with our economic objectives.
To boost trade
Peak rate of basic customs duty = 10% (for non agro products) Normal excise duty = 12% Normal service tax= 12% What? Duty Increase/decrease? Chindu said Leather and leather goods is a thrust sector for exports. I propose to reduce the duty on specified machinery for manufacture of leather and leather goods
Import Machinery for leather factory
Decrease
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and footwear.
Taxation: Export
Precious stones exporting Decrease To encourage exports, I propose to reduce the duty on pre-forms of precious and semi-precious stones from 10 percent to 2 per cent. Export duty on de-oiled rice bran oil cake has made our exports uncompetitive. Hence, I propose to withdraw the said duty. Prices of unprocessed ilmenite have gone up several fold in the export market. Considering the need to conserve our natural resources, I propose to impose a duty of 10 percent on export of unprocessed ilmenite. Ilmenite Increased Side note: Ilmenite is the primary ore of titanium. Found in TN, Odisha, Kerala. Titanium dioxide is used in paint and coating industry. Titanium is used in aircraft, tank, weapons, artificial joints, sporting equipment and high performance alloys. At present both Steam coal and Bituminous coal are used in thermal power stations, but attract different rates of customs duty and counter veiling duty. I propose to equalize the duties on both kinds of coal and levy 2 per cent customs duty and 2 per cent CVD. There is an affluent class in India that consumes imported luxury goods such as high end motor vehicles, motorcycles, yachts and similar vessels. I am sure they will not mind paying a little more. Hence, I propose to increase the duty on such vehicles.
oil cake
Eliminated
Coal
Streamlined
Luxury vehicle
Increased
Coal dependence
Despite abundant coal reserves, we continue to import large volumes of coal. If the coal requirements of the existing and future power plants are taken into
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account, there is no alternative except to import coal and adopt a policy of blending and pooled pricing. In the medium to long term, we must reduce our dependence on imported coal. One of the ways forward is to devise a PPP policy framework to increase the production of coal. Coal ministry will announce the policies in this regard.
IT
The Rangachary Committee was appointed to look into tax matters relating to Development Centres & IT sector and Safe Harbour rules for a number of sectors. By the way, Rangachary was also a member of Shome Panel (for GAAR).
What is countervailing duty (CVD)?

Suppose we imported xyz thing from USA. And that xyz thing is also manufactured by Indian producers as well. But the American Government provides some subsidies to their exporters, hence the price of imported XYZ item is more than the locally produced desi variety. And or The Indian producers are required to pay more taxes hence desi variety has become more expensive than the American product. In such case, Indian Government can imposes addition tax on the imported item to protect the domestic industry. This is known as countervailing duty (CVD). In 2013, US Department of Commerce started investigation a countervailing duty (CVD) investigation against India and six other countries on export of shrimp. Because the (domestic) American shrimp industry had complained that Indian Government provides lot of incentives, subsidies and tax reliefs to Indian shrimp exporters, so US Government should impose a CVD on the shrimps imported from India.
Conclusion
Gold and CAD
In the earlier article on Gold ETF, we saw the measures taken by govt. to reduce the gold import(click me) While the supply of gold through organized channels can be constricted, there is need to be vigilant regarding gold inflows through unauthorized channels (= Smuggling). Ultimately, the best way to reduce gold imports in a sustainable way will be to offer the public financial investment opportunities that generate attractive returns. This means bringing down inflation as well as expanding the range of investments investors have easy access to. (e.g. Rajiv Gandhi Equity savings scheme RGESS).
Trade Agreement
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India always stood for open, unbiased, international trading system, but since WTO negotiations are not moving in positive direction, we need to focus on Regional Trade agreements (RTAs). Particularly for exporting our technologyintensive items. There is also need to address the inverted duty structure in sectors like electronics, textiles, and chemicals and the artificial inverted duty structure caused by some FTAs/RTAs.
Important Summits
2012 SAARC Addu, Maldives (2011) ASEAN Phnom Penh, Cambodia BRICS Delhi G20 2013
Kathmandu Brunei Durban, S.Africa Los Cabos, Mexico Brisbane, Australia St. Petersburg, Russia
Trade Blocs/ Regional Groups

List is not exhaustive. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Australia Brunei Canada Chile China HongKong Indonesia Japan SouthKorea Malaysia Mexico New Zealand Papua NewGuinea Peru Philippines Russia Singapore Taiwan Thailand United States Vietnam
APEC
Asia-Pacific Economic Cooperation
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APTA
Asia Pacific Trade agreement
1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Bangladesh China India S.Korea Sri Lanka Brunei Cambodia Indonesia Laos Malaysia Burma (Myanmar) Philippines Singapore Thailand Vietnam
ASEAN
Association of South East Asian Nation
BIMSTEC
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation
1. 2. 3. 4. 5. 6. 7.
Bangladesh Bhutan Myanmar India Nepal SriLanka Thailand
BRICS
Brazil, Russia, India, China and South Africa
1. 2. 3. 4. 5.
Brazil Russia India China South Africa
CELAC
Community of Latin American and Caribbean States
33 countries in that region. Names not worth the space hahaha. 1. 2. 3. 4. 5. 6. 7. 8. 9. Armenia Azerbaijan Belarus Kazakhstan Kyrgyzstan Moldova Russia Tajikistan Uzbekistan
CIS
Commonwealth of Independent States
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COMESA ECOWAS
Common Market for Eastern and 20 member states stretching Southern Africa from Libya to Zimbabwe. Economic Community of 15 members in Western Africa. Western African States 1. 2. 3. 4. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Iceland Liechtenstein Norway Switzerland Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden UK Argentina Australia Brazil Canada China European Union France Germany India Indonesia
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EFTA
European Free Trade association
EU
European Union
G20
Group of 20
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11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 6.
Italy Japan Mexico Russia SaudiArabia SouthAfrica SouthKorea Turkey UnitedKingdom UnitedStates Canada France Germany Italy Japan Russia UK US Bahrain Kuwait Qatar Saudi Arabia Oman United Arab Emirates (UAE)
G8
Group of 8 (Wealthiest nations)
GCC
Gulf cooperation council
GSTP
Global system of trade preferences
44 developing countries. List is not worth the table space hahaha. 1. India 2. Brazil 3. South Africa 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Australia Bangladesh Comoros India Indonesia Iran Kenya Madagascar Malaysia Mauritius Mozambique
IBSA
India Brazil South Africa
IORARC/Ocean Rim
Indian Ocean Rim association of regional cooperation.
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12. 13. 14. 15. 16. 17. 18. 19. 20. 1. 2. 3. 4. 5.
Oman Seychelles Singapore S.Africa Sri Lanka Tanzania Thailand UAE Yemen Argentina Brazil Paraguay Uruguay Venezuela (member since 2012)
MERCOSUR
Southern Common Market. (Mercado Comun Del sur)
NAFTA
North American Free Trade Agreement
1. Canada 2. US 3. Mexico 1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 7. 8. Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka South Africa Botswana Lesotho Swaziland Namibia India Paki Nepal Lanka Bangladesh Bhutan Maldives Afghanistan (latest member)
SAARC
South Asian Association for Regional Cooperation
SACU
Southern African Customs Union
SAFTA
South Asia Free Trade Agreement
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SCO
Shanghai Cooperation Organisation
1. 2. 3. 4. 5. 6.
China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan.
IMF: Advanced Economies in ASIA

1. 2. 3. 4. S.Korea Hong Kong Singapore Taiwan
Mock Question
1. Baltic dry index measures a. change in crude oil prices b. change in dollars value against major currencies. c. Performance of share markets in Baltic nations d. None of Above 2. Increase in Baltic Dry index means a. World economy is moving in negative direction b. World economy is moving in positive direction c. World economy is moving towards a stalemate d. None of above 3. Which of the following is not among the top 3 trading partners of India? a. US b. UAE c. China d. Japan 4. India doesnt have trade surplus with a. Singapore b. Hong Kong c. Switzerland d. All of above 5. India doesnt have PTA agreement with a. Chile b. Mercosur c. Afghanistan d. Sri Lanka 6. India doesnt have FTA agreement with a. Thailand b. Japan c. Malaysia d. Afghanistan 7. With Japan, India has ______ agreement
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8.
9.
10.
11.
12.
13.
14.
15.
16.
a. CEPA b. CECA c. PTA d. No trade GSTP aims to increase trade between _____ countries under ______. a. Developed, UN b. Developing, UNCTAD c. All, WTO d. member, ASEAN India has high current account deficit mainly because of a. coal import b. crude oil import c. slow down in export d. All of above Current Account Deficit can be financed through a. Only FDI, FII b. Only FDI and ECB c. Only ECB and FII d. FDI, FII and ECB Ilmenite is the primary ore of a. Copper b. Aluminum c. Titanium d. Magnesium Which of the follow coal is used in Thermal power stations? a. steam coal b. Bituminous coal c. both d. none Rangachary Committee is associated with taxation of ____ sector. a. IT b. Fisheries c. Coal d. gems and jewelry Addu declaration is associated with a. UNESCO b. G20 c. SAARC d. G8 For 2013, SAARC summit will be held in a. Kathmandu b. Delhi c. Lahore d. Thimpu Durban summit, 2013, is associated with a. BRICS b. G20 c. G8 d. UNESCO
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17. In 2012, G20 summit was held in a. Los Angeles b. Phnom Penh c. Los Cabos d. None of above 18. Phnom Penh hosted the _____ summit in 2012. a. ASEAN b. BRICS c. G20 d. G8 19. Correct order in terms of membership (smaller to bigger) a. ASEAN, BIMSTEC, G20 b. BIMSTEC, ASEAN, G20 c. BIMSTEC, G20, ASEAN d. None of above 20. Switzerland is a member of a. EU b. EFTA c. Both d. None 21. Which of the following is associated with African Continent? a. COMESA, b. ECOWAS c. SACU d. All of above 22. Who among the following, is a member of GCC? a. Syria b. Iraq c. Bahrain d. Iran 23. G8 doesnt have member from which continent? a. Europe b. Australia c. Asia d. North America 24. MERCOSUR membership doesnt include a. Brazil b. Paraguay c. Uruguay d. Venezuela 25. NAFTA includes a. only US, Canada b. only US, Mexico c. Only Canada, Mexico d. US, Canada and Mexico 26. SAARC has ___ members a. 5 b. 6 c. 7
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d. 8 27. SAFTA doesnt include a. China, Pakistan and Afghanistan b. China and Myanmar c. Nepal and Myanmar d. Myanmar and Maldives 28. As per IMF classification, which of the following is not an Advanced economy a. Taiwan b. Singapore c. South Korea d. China 29. ___, ____ and ____ are the chiefs of World Bank, IMF and WTO respectively a. Christine lagarde, Pascal Lamy, Jim Yong Kim b. Pascal Lamy, Christine lagarde, Jim Yong Kim c. Jim Yong Kim, Christine lagarde, Pascal Lamy d. Christine lagarde, Jim Yong Kim, Pascal Lamy 30. To reduce its dependence on China, Japan recently inked a pact with India to import ____. a. Rice b. Eggs and unprocessed meat c. Iron ore d. Rare earth minerals 31. The annual supplements to Foreign Trade policy are released by a. Finance ministry b. Commerce Ministry c. External Affairs ministry d. PMO 32. Which of the following is a town of export excellence for Apparel a. Ahmedabad b. Kolhapur c. Gurgaon d. Shaharanpur 33. In 2013, Morbi was declared a town of export excellence for its ____ sector a. Electronics b. Leatherwork c. Ceramic d. Handicraft 34. In 2013, Gurgaon was declared a town of export excellence for its ___ sector a. Automobile b. IT c. Apparel d. Service 35. Government provides interest subvention to a. Farmers b. Handloom, handicraft exporters c. both d. none 36. Who benefits from E-BRC scheme? a. Indian Exporters
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37.
38.
39.
40.
41.
b. Indian IT companies c. Indian Embassies in Brazil, Russia and China d. All of Above ASIDE Scheme is meant to a. Provide assistance to physically challenged b. improve infrastructure for Export development c. provide loans to farmers d. provide assistance to HIV positive people. Matters related to dumping falls under the purview of a. Commerce Ministry b. Finance Ministry c. External Affairs Ministry d. Home ministry Countervailing Duty: correct statements a. It is an example of Indirect Tax b. It is imposed on imported goods in certain circumstances. c. Both d. None What is the purpose of countervailing duty? a. Protect domestic industry against foreign industry b. Protect exporters against domestic industry in the foreign country c. Protect exporters against currency exchange rate fluctuations d. None of above Ease of Doing business data is released by a. OECD b. WTO c. World Bank d. IMF
URL to article: http://mrunal.org/2013/04/economic-survey-ch7-international-tradefta-pta-aside-e-brc-cepa-vs-ceca-difference-explained.html Posted By Mrunal On 26/04/2013 @ 21:45 In the category Economy
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Mrunal [Economic Survey Ch8] Agriculture and Food Management ...
http://mrunal.org/2013/04/economic-survey-ch8-agriculture-and-food...
[Economic Survey Ch8] Agriculture and Food Management

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Indias rank in Agro production FYP Achievement: Agro Crop Seasons National Monsoon Mission Sugar Ethanol Blending Program Edible Oil Agro input Fertilizers: NIP 2012 Nutrient Based Subsidy (NBS) Irrigation ICAR: programs Procurement Missions 1. National Food Security Mission (2007) 2. National Mission for Sustainable Agriculture 3. Rashtriya Krishi Vikas Yojana (2007) 4. Bringing Green Revolution to Eastern India (2011) 5. ISOPOM 6. National Horticulture Mission Kisan Credit Card (KCC) Agro Insurance Agro Marketing Radiation application in Food processing ATMA National Dairy plan (Phase-1) FOOD MANAGEMENT 1. FCI 2. Decentralized Procurement Scheme 3. Open Market Sale Scheme (Domestic) 4. National Food Security Bill 5. International Co-op Conclusion Timeline Mock Questions
15. 16. 17. 18. 19. 20. 21.
22. 23. 24.
Indias rank in Agro production

India ranks in production of First 1. Milk, 2. Pulses
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3. Jute And Jute-Like Fibres 4. Tractors 1. 2. 3. 4. 5. 6. 7. Rice, Wheat, Sugarcane. (Brazil is first) Groundnut, Vegetables, Fruits Cotton Production
Second
10th
in agricultural and food export
FYP Achievement: Agro

Plan Agro growth Actually achieved (%) 9th 2.5 10th 2.4 11th 3.6
FYP Targets
Under both 11th Five year plans and 12th Five year plan, government wanted average annual growth of 4 per cent in the gross domestic product (GDP) from agriculture and allied sector. But 11th Five year plan period, what we actually got was just 3.6%= 11th FYP target for Agriculture growth = not achieved.
Agro Employment
Agriculture, including allied activities= ~14 per cent of the GDP (2011), but their share in total employment ~58 (2001 Census). Meaning, Agricultures role in the countrys economy is quite crucial. As the country develops, the share of agriculture in its GDP decreases. But still, India needs fast agricultural growth for jobs, incomes, and the food security.
Crop Seasons
What When? Sowing-june july. Harvested in Sept-Oct Sowing in Oct-Nov Harvesting February-March
Kharif Rice, cotton, maize and jute
Rabi
Wheat, Pulses
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Zaid
Fruits and vegetables
Summer season April-May-June
National Monsoon Mission

performance of Indian agriculture is still heavily dependent on rainfall and south west monsoon (June to September) And Last few years havent been good in terms of rainfall. More than 50% cultivated area in India depends on monsoon =>advance information about monsoon =very imp. Earth System Science Organization (ESSO) under Ministry of Earth Sciences has initiated the National Monsoon Mission during the 12th Five Year Plan. This will improve the reliability of monsoon forecasts help government to take necessary policy / administrative steps to support farmers and food management.
Sugar
India is the largest consumer of Sugar India is the second largest producer of sugar after Brazil. Sugar and Sugarcane are essential commodities under the Essential Commodities Act 1955. But Indian sugar sector suffers from policy inconsistency and unpredictability. Whenever there is big hue and cry over inflation, government would ban sugar export and allow duty free import of sugar. Due to this type of unpredictability in prices, over the years farmers have reducing growing sugarcane. For long, experts have demanded that Sugar industry should be deregulated and government should come into the picture only in situations where absolutely necessary. In this regard, Government had setup Rangarajan committee to look into the deregulation of Sugar industry. Entire report discussed in old article click me Rangarajan is the Chairman of the Economic Advisory Council to the Prime Minister. (also known as PMEAC=PMs Economic advisory council).
Ethanol Blending Program

Ethanol is produced from Molasses (=by product of sugar industry) 2007 Government allowed sugar companies to directly produce ethanol from sugarcane juice. National Policy on Biofuels announced. phased implementation of ethanol blending with petrol. This was the deadline for starting ethanol blending. This is the new deadline for ethanol blending.
2008 1st Dec 2012 1st July 2013
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More on ethanol blending, discussed in old article, click me
Edible Oil
Though India is the largest producers of pulses in the world. However, 50 per cent of its domestic edible oil requirements are met through imports. Within imported edible oil, majority is palm oil, palmolein and soyabean oil.
Why large import of Edible oil?

In the recent years, although domestic production of oilseeds = increased but still not sufficient to meet demand. competitive prices of edible oils in the international market Duty on imported edible oil is very low. Suggestion: India should have independent tariff policy on edible oil. Increase import duty and utilize that money for oilseeds development programs.
AGRICULTURAL INPUT
Seeds
Farmers typically rely on farm-saved seeds. But over use of such seeds = poor yield. Controversies surrounding GMO and Bt-brinjal.
Mechanization
India is the world leader in tractor production with over 5 lakh tractors produced annually commercial banks reluctant to extend loans for bullocks. This has naturally led to an increase in farm mechanization. Problem: farm mechanization has so far been biased in favor of tractors (=need big farm) and been concentrated in irrigated-command areas (Punjab, Haryana, UP etc.) Small and marginal farmers in rainfed areas= ignored. Majority of farmers in India have small and marginal landholding. Therefore, it is uneconomic for them to individual own tractor, thrasher, combined harvester etc. agricultural machinery. Government needs to setup custom-hiring centres/high-tech machinery banks to help these small and marginal farmers. There is also scope for introducing small machines that might be useful to meet their needs.
Fertilizer
80% of our urea demand met through domestic production. But for potassic (K) and phosphatic (P) fertilizer, we largely depend on imports.
Fertilizers: NIP 2012

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government has notified the New Investment Policy 2012 (NIP-2012) in the urea sector. It will encourage investments in brownfield and greenfield projects. increase in domestic production capacity reduce import dependence reduce govt. expenditure on subsidy. ensure the long-term availability of gas required for expansion and greenfield/brownfield projects. If gas prices increase, then In the event of increase in gas prices provisions are made in the policy to protect the interest of investors. It + government is implementing direct cash transfer to the farmers for purchase of fertilizer, seeds etc.
Nutrient Based Subsidy (NBS)

Indian farmers use too much urea because 1) govt. gives subsidy hence its cheap 2) lack of awareness. But for optimal crop production, you need to use variety of fertilizers and not just Urea. So government came up with Nutrient Based Subsidy scheme. Under this scheme, Government gives subsidy on each grade of phosphatic and potassic (P&K) fertilizer depending upon its nutrient content. Government also give additional subsidy on secondary and micro-nutrients. Farmers pay only 58 to 73 per cent of the delivered cost of P&K fertilizers; the rest is borne by the Government of India in the form of subsidy. Manufacturers/marketers are allowed to fix the maximum retail price (MRP)=> prices of these decontrolled products have double. But urea is not covered under the NBS scheme and government continues to provide subsidy on urea separately. Result=> farmers are relying more on Urea than on the new P&K fertilizers. So, while government had expected that NBS scheme would reduce the Urea consumption but actually reverse has happened.
Irrigation
Central Water Board 45 Initiate, coordinate schemes for Flood control, irrigation, drinking water supply etc. with state Governments. Command Area Development program. To bridge the gap between irrigation potential created and utilized. National perspective plan Interlink rivers to transfer water from water surplus basins to water deficit regions. National water Development agency to
CAD
Mid 70s
NPP
80
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carry out survey research work for this. National water resources council 83 PM is the chairman Headed by Secretary, Water resources ministry. Reviews the progress in National water policy and reports it to the National water resources council. Accelerated Irrigation Benefit Programme (AIBP) Central government provides assistance to States for finishing the incomplete irrigation schemes. Command Area Development Programme has also been amalgamated with the AIBP In seven states 1. 2. 3. 4. 5. 6. 7. AP Mah Kar Raj TN Guj MP
National water board
90
AIBP
Mid-90s
Artificial recharge to ground water through dug wells
2007
Agriculture Research and Education

ICAR Indian Council of Agricultural Research (ICAR) Basic and applied research Mainly on problems of rainfed areas. State Agricultural Universities (SAUs) Generating required manpower for agro research, assistance. applied and research mainly on local problems
SAU
At present, India spends ~0.6% of its agricultural GDP on research and Development. For achieving 4% agro-growth target, R&D spending must be increased, atleast 2-3 times of current level.
ICAR: programs
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National Agricultural Education Project
Improvement in Higher Agricultural Education Upgrade quality in State Agricultural Universities.
National Agriculture Entrepreneurship Self explanatory Project To enhance farmersscientist contact via Krishi Vigyan Farmer FIRST Kendra Rural Entrepreneurship and Awareness Development Yojana (READY) As you can see entire phrase is in English except last word Yojana. Word Yojana is added only to get the alphabet Y so itd become a catchy phrase readY. These bureaucrates will do anything to harass an aspirant with these stupid schemes with catchy names. Anyways, this Student Ready is a one-year composite program Students who are pursuing their studies in various branches of agriculture will have to undergo rural awareness work experience to get hands on experience on the marketing skills etc. so they can become an entrepreneurs after completing the course. National Initiative on Climate Resilient agriculture. Rice hybrid for irrigated and shallow lowlands. Agriculture Sciences Pursuit for Inspired Research Excellence Engine operated weeder for rice intensification. A machine for cottonyarn production Knowledge information repository in agriculture for North East. (if our bureaucrates put more time in actual work rather than in designing such catchy terms and phrases for the schemes then North East would have became Switzerland by now.) Corporate platform for ICAR. To commercialize agro technology To provide agro-consultancy in India and abroad. Software package designed by ICAR. To understand climate change impact on crop performance. Binjhapuri Ghumsuri Khariar Motu
Student Ready
NICRA CR Dhan 701 ASPIRE Garuda CIRCOT minicard
KIRAN
Agri-Innovate India ltd.
Weather cock
Cattle breeds
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The breeds of cows, buffalos, goats, pigs etc. are endless but above data is given in India 2013 Yearbook, hence important.
ICAR: Fisheries
Wallago attu Fresh water catfish. ICAR has developed technology for storing it. Fresh water fishes ICAR has developed techonology for storing it.
Rohu, catla
ICAR did the nutrient profiling of clam, crab and prawn and indicated that crab has a superior nutritive fat profile. Mahseer and trout= coldwater fishes. Saprolegnia is a pathological fungi that infects these cold water fishes (Mahseer and trout). ICAR found that herbs like Kali sarson and Lemon grass can be used to inhibit the growth of that fungi.
Procurement
In each season, government, 1. Announces Minimum Support Prices (MSPs) for major agricultural commodities 2. organizes purchase operations, through FCI, cooperatives etc. to ensure that prices do not fall below the MSP. Government of India decides the MSP after getting inputs from 1. Commission for Agricultural Costs and Prices (CACP) 2. views of state governments 3. view of central ministries MSP is announced well ahead of the sowing season so that farmers can take informed decisions on cropping. (especially before elections). In last few years, government has substantially increased the Minimum support prices for many crops. (and some economists blame this for the rising food inflation). On behalf of government, FCI procures the foodgrains but if FCI makes any losses, then it is fully reimbursed by the central government. This has led to substantial fiscal stress on the government. The government also implements a Market Intervention Scheme (MIS) on the request of states/union territories (UTs) for horticultural and agricultural commodities, generally perishable in nature and that are not covered under the PSS
Missions
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Agriculture is a state subject. Therefore, increasing agriculture production= primarily the responsibility of state government. And the central government supplements the efforts of state governments through centrally sponsored and central-sector schemes.
National Food Security Mission (2007)

was launched in 2007-8 with three major components, viz. Components Target=Increase production by ___ million tones at the end of 11th FYP NFSM-Rice 10 NFSM-Wheat 8 NFSM-Pulses 2 +Restore soil fertility Enhance farm-level economy, employment opportunities;
National Mission for Sustainable Agriculture

One of the eight missions under National Action Plan on Climate Change (NAPCC) ensuring food security, enhancing livelihood opportunities, and contributing to economic stability at national level
Rashtriya Krishi Vikas Yojana (2007)

To make State governments increase State plan Expenditure on agro + allied sector.
Bringing Green Revolution to Eastern India (2011)

under the Rashtriya Krishi Vikas Yojana( RKVY) Intends to address the constraints limiting the productivity of rice based cropping systems in eastern India comprising seven states, viz. 1. 2. 3. 4. 5. 6. 7. Assam Bihar Chhattisgarh Jharkhand Odisha Eastern Uttar Pradesh West Bengal.
Rainfed Area Development Programme
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under the Rashtriya Krishi Vikas Yojana( RKVY) focus on small and marginal farmers and farming systems.
ISOPOM
Integrated Scheme of Oilseeds, Pulses, Oil Palm, and Maize Provides assistance for purchase of seeds, chemicals, equipment etc. During Twelfth Five Year Plan, it is proposed to replace this scheme with a new Mission on Oilseeds and Oil Palm.
National Horticulture Mission

ensuring forward and backward linkages through adopting a cluster approach creating value addition and better delivery mechanism to consumers through a cold chain system, a National Centre for Cold-Chain Development (NCCD)
Kisan Credit Card (KCC)

Started in 98 For short and medium term loan. + insurance in case of accidental death / disability. Revised in 2012 : Now old KCC passbook will be replaced with an ATM-cum-debit card. Farmers were granted post-harvest loans against negotiable warehouse receipts at commercial rates. the benefit of interest subvention has been extended to small and marginal farmers having KCC
Agro Insurance
1. National Agricultural Insurance Scheme (NAIS): By Agriculture Insurance Company of India Ltd. 2. Weather Based Crop Insurance Scheme: to insure farmers against adverse weather incidence Challenge: Need to refine the current crop insurance system for unavoidable climatic conditions and pest epidemics.
Agro Marketing
Model act
Government of India prepared a model Agricultural Produce Marketing (Development and Regulation) (APMC) Act in 2003. many of the states are yet to adopt the Model Act uniformly.
DMI
Directorate of marketing and inspection.
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It is an attached office under Agri ministry.
AGMARK
Agricultural produce (Grading & marketing) Act, empowers central Government to notify rules for quality and grades of agro produce. The standards notified under this act = known as AGMARK. AGMARK is voluntary in nature.
FDI
Farmers access to markets is hampered by poor quality roads, lack of cold storage, rudimentary market infrastructure, and excessive regulation. Therefore government allowed foreign direct investment (FDI) in multi-brand retail and itll help in.(this tape has been repeated 50000 times so Ill not finish the sentence).
Radiation application in Food processing

By Department of atomic energy Place BRITs Radiation processing plant @Navi Mumbai BARCs KRUSHAK (Krishi Utpadan Sanrakshan Kendra) Near Nasik Dose of radiation high low Preservation of Spices Onion, pulses, rawa and turmeric.
ATMA
Agricultural Technology Management Agencies (ATMA) Extension system of State agricultural departments is the weakest link in the chain between research and the farmer. Large number of vacancies of extension workers in the State Agriculture Department ATMA is central Governments effort for State extension reforms.
National Dairy plan (Phase-1)

With assistance from World Bank Cabinet approved it in 2012. Produce 150 million tons of milk by 2016-17.
FOOD MANAGEMENT
The main objectives of food management are 1. Procure foodgrains from farmers at remunerative prices, 2. Distribute foodgrains to consumers at affordable prices (especially poors and vulnerable sections of society via Targetted public distribution system =TPDS)
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3. Maintain food buffer stock for food security and price stability.
FCI
Food Corporation of India (FCI). It is the nodal agency to procure, store and distribute foodgrains. It procures foodgrains, mainly for the targeted public distribution system (TPDS) and other welfare schemes of the Government e.g. Antyodaya Anna Yojana (AAY), Mid-day meal, Integrated Child Development Service, Annapurna etc. Challenge: storage capacity = not good= wheat, rice gets rotten and becomes unfit for human consumption.
Decentralized Procurement Scheme

Introduced in 1997 Under this system, State governments themselves producre and distribute foodgrains (instead of via FCI).
Open Market Sale Scheme (Domestic)

FCI procures foodgrains mainly for distributing to poor via PDS shops. However, FCI also sales wheat and rice in the open market from time to time to enhance market supply of foodgrains and to offload its surplus stocks. Now lets look at some schemes (Government schemes= goldmine minefield for MCQs). Started in mid 80s Scheme is implemented By HRD ministry. But Department of food and civil supply (under Ministry of Consumer Affairs, Food and Public Distribution) provides the food grain requirement. Wheat based nutrient program Under Integrated child Development scheme Scheme implemented by Ministry of Women and Child Development. Emergency Feeding program To provide food to old, infirm, destitute BPL under distress condition. Launched in mid 90s, for some districts in Odisha (KBK region). National social assistance program In mid 90s.
Mid-Day meal
WBNP
EFP
NSAP
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To fulfill article 41 under DPSP (right to work, education and public assistance in certain cases). It contains following components 1. 2. 3. 4. Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), Indira Gandhi National Disability Pension Scheme (IGNDPS), National Family Benefit Scheme (NFBS): to BPL family, for death of primary breadwinner. 5. Annapurna (food). Targeted Public distribution system. Started in late 90s Initially, to provide 10 kg food grain / per family / month Now amount increased to 35 kg per BPL and AAY family per month. Antyodaya Anna Yojana Started in 2000 Find poorest of poor families in BPL (covered under TPDS) And give them wheat @Rs.2/kg and Rice @Rs.3/kg Started in 2000 By rural Development ministry. For senior citizen who are not getting pension under NOAPS (National old age pension scheme). Annapurna gives them 10kg food grain per person per month. Later it was merged in the National Social Assistance Programme (NSAP). Initially By Tribal affairs ministry (now transferred to Dept of Food and Public distribution) During natural disaster or lean season, the marginalized households dont have money to buy ration. They can borrow food grains from the village grain bank. Village grain banks are setup in food scare areas like drought prone, hot/cold desert, tribal and hill areas. Not again, man this is becoming so damn clichd. Rajiv Gandhi Scheme for empowerment of Adolescent girls. SABLA implemented by Ministry of Women and Child Development. (not by HRD ministry or social welfare ministry) SABLA is created by merging earlier two schemes : Nutrition program for adolescent girls + Kishori Shkati Yojana. Target: girls aged 11-18 100 gms of foodgrain per day per girl for 300 days in a year.
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TDPS
AAY
Annapurna
Village grain bank
SABLA
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National Food Security Bill

Introduced in Lok Sabha. It aims to covere of 75% of the rural and 50% of the urban population for subsidized foodgrains under the Targeted Public Distribution System, +additional support to women, children, pregnant and lactating mothers, homeless, those affected by disaster etc. Bill was referred to the Parliamentary Standing Committee on Food, Consumer Affairs and Public Distribution for examination. Parliamentary Standing Committee on Food, Consumer Affairs and Public Distribution submitted its report to the Speaker Mira Kumar (kripya beth jayiyeTM)
Dec 2011
Jan 2013
Issue: We need not just food security but also nutritional security. Therefore, Government needs to increase both per capita availability of foodgrains + right amounts of horticulture and protein rich items in the food basket of the common man
International Co-op
Food and Agriculture Organization specialized agency of the United Nations good nutrition and food security for all. HQ: Rome, Italy World Food Programme (WFP) food assistance branch of the United Nations, headquarters in Rome, Italy provide food to victims during war, civil conflict and natural disasters and afterwards. Millennium Development goals. Total 8 goal and first is: removing poverty and hunger. provide food security to the people of SAARC region. Member states maintain reserve of either wheat or rice or combo of both.
45
FAO
60s
WFP
2000-15
MDG
2007
SAARC Food bank
Conclusion
In the green revolution belt (Punjab-Haryana) there is over-exploitation of water
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resources, overuse of fertilizer. This has led to soil erosion, soil salinity, water logging. Pace of agricultural growth in the eastern and north-eastern regions has been slower than in the rest of the country. India has failed to meet its 4% agro growth target under 11th FYP. India faces stiff challenge of feeding its growing population. India will have to invest heavily in farm research, rural infrastructure, agro credit, irrigation, seeds-fertilizer, farm mechanization etc. to achieve that 4% target.
Timeline
1985 Mid-day meal 1986 WHEAT BASED SUPPLEMENTARY NUTRITION Program under ICDS 1990 Watershed Development for rainfed areas 1995 1997 1998 2000 2000 2000 2005 2006 2007 Emergency feeding program National social assistance program Targeted PDS Kisan Credit Card Cattle and buffalo breeding project Antyodaya Anna Yojana Annapurna National Horticulture mission National bamboo mission National food security mission Rashtriya Krishi Vikas Yojana.
2010 SABLA 2012 National Dairy plan phase 1 (NPD-1)
Mock Questions
1. India doesnt rank first in the production of a. Pulses b. Tractors c. jute d. Cotton 2. India ranks second in production of a. Rice b. Wheat c. Fruits d. All of above 3. for ___ th Five year plan, the target for average annual growth in GDP from agriculture and allied sector is ___ % a. 11, 3.6% b. 12, 4%
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4.
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c. 12, 3.6% d. 11, 4.5% What is the approximate share of Agriculture and allied activities in the GDP of India? a. 14 b. 58 c. 4 d. 3.6 From this April to next april, what is the correct order of crop seasons? a. Kharif, Rabi, Zaid b. Rabi, Kharif, Zaid c. Zaid, Kharif, Rabi d. None of above National monsoon mission is launched by a. Earth System Science Organization b. CSIR c. ICAR d. Meteorological Department Which of the following is covered under Nutriend Based subsidy a. Phosphatic fertilizers b. Potassic fertilizers c. Both d. None Which of the following program is not directly associated with ICAR? a. Farmer first b. Student Ready c. NICRA d. Indian Monsoon Mission Weather cock is a ____ designed by ____. a. Mechnical instrument, CSIR b. Mechnical instrument, Meterological Department. c. Software package, ICAR d. Software package, CSIR Banni and Chilika are breeds of a. pigs b. buffalo c. sheep d. cow Incorrect Match a. Jakharana: goats b. Ghungroo: pigs c. Muzaffarnagari: sheep d. Motu: Buffalo ICAR found herbs like Kali sarson and Lemon grass beneficial for certain cold water fishes. Because a. they provide nutrition to the fishes b. they inhibt the growth of pathological fungi that infects those fishes c. they improve the reproduction rate those fishes d. None of above.
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13. Which of the following doesnt fall under State list a. Agriculture b. Agricultural research c. irrigation and canals d. Adulteration of foodstuff 14. National food security mission has three major components viz a. Rice, Maize, Pulses b. Wheat, Rice, Maize c. Rice, Wheat, Pulses d. Wheat, Rice, Coarse Grains e. None of above 15. Which of the following state is not covered under Bringing Green Revolution to Eastern India a. Bihar b. Chattisgarh c. Jharkhand d. Odisha 16. Wheat based nutrient program is a part of a. Mid day meal b. ICDS c. SABLA d. AAY 17. AAY is meant for a. Poorest of Poor b. APL c. BPL and BPL d. Widows and destitute 18. Target beneficiary of Annapurna a. senior citizen b. children c. adolescent girls d. pregnant and lactating mothers 19. Village grain banks are setup in the areas having a. food scarcity b. surplus food grain production c. genetic diversity in agricultural crops d. none of above 20. Who implements SABLA? a. Women and Child Development ministry b. HRD Ministry c. Social welfare Ministry d. Rural Development Ministry 21. Who implements Annapurna? a. Women and Child Development ministry b. HRD Ministry c. Social welfare Ministry d. Rural Development Ministry 22. Who implements Mid-day meal? a. Women and Child Development ministry
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b. HRD Ministry c. Social welfare Ministry d. Rural Development Ministry 23. Among the following schemes, which one is oldest? a. Mid day meal b. TDPS c. AAY d. Annapurna 24. National food security bill was examined by Parliamentary standing Committee on _____. a. Agriculture and allied activities b. Finance c. Social welfare and social justice d. Food, Consumer Affairs and Public Distribution 25. National Social assistance program contains schemes that provide for a. pension to certain category of people b. money on the death of primary breadwinner in BPL family c. food to certain category of people d. all of above By the way, Reminder to SBI PO aspirants: Tomorrow Do bring following for the exam 1. A photo id proof (driving license, voter's card etc.) original + its xerox. 2. call letter with your photo affixed on it 3. Note your class 10, 12, college marks and parents' income. You'll need to fill it up in the answersheet.
URL to article: http://mrunal.org/2013/04/economic-survey-ch8-agricultureand-food-management.html Posted By Mrunal On 27/04/2013 @ 22:12 In the category Economy
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Mrunal [Economic Survey Ch9] Industrial performance, E-biz, Invest...
http://mrunal.org/2013/05/economic-survey-ch9-industrial-performanc...
[Economic Survey Ch9] Industrial performance, E-biz, Invest India, Manufacturing Policy, OBICUS, ASI
1. Index: IIP vs WPI vs CPI 2. Survey: OBICUS vs ASI 3. Industrial Licensing 1. Nitrocellulose 2. Hydrocyanic acid 3. Phosgene 4. Methyl Isocyanate (MIC) 4. Industries reserved: 5. IEM 6. Boosting Industrial sector 1. National Manufacturing Policy (NMP) 2011: Objectives 2. E-Biz Project 3. Invest India 4. Circular 1 of 2013 5. IPR initiatives 6. The Madrid Protocol 7. Trademark Amendment Act 2010 8. I-Mark 9. JK and Hill Areas 10. National Electric Mobility Mission Plan (NEMMP) 2020 11. National Council for Electric Mobility 7. Textile related 1. TUFS 2. Technical Textiles 3. Jute 4. Silk 5. Central silk board 6. SMOI 7. National textile corporation ltd 8. Cotton 8. PMEGP 9. PSU: delegation 10. Misc facts 1. Indias rank in production 2. Refrigerators: DC vs FF 3. BEE labelling 4. Batteries: Lead acid vs Dry cell 5. Alkaline batteries in India 6. Foundry clusters 7. Water treatment plant 8. Water treatment processes
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9. Air pollution control equipment 10. Industrial Gears 11. Measures to boost MSME sector 12. CHALLENGES & OUTLOOK 13. Mock Questions
Index: IIP vs WPI vs CPI

What is IIP, already discussed in earlier article click me.
IIP
What? Who calculates? Under Which Ministry? Base year? Items? Index of Industrial Production Central Statistical Organization (CSO) Statistics & Programme Implementation 2004 399
WPI
Wholesale price index Economic advisor Commerce 2004 676
CPI
Consumer price index Central Statistical Organization (CSO) Statistics & Programme Implementation 2010 200
Based on sector:
1. mining, 2. manufacturing 3. electricity Categories 1. Entire urban population 2. Entire rural population 3. Urban + Rural (consolidate from above two)
Based on use:
1. basic goods 2. capital goods 3. intermediate goods 4. consumer goods: i) durable (ii)non-durable
1. Primary articles 2. Fuel, power, light, lubricants 3. Manufactured products.
Measures the increase/decrease Production in
Price
Price
Survey: OBICUS vs ASI

What Full form
OBICUS
ASI
Order Books, Inventories & Annual survey of industries Capacity Utilization Survey
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Who releases? Timeframe Use?
Who is surveyed?
NSSO under Ministry of RBI Statistics & Programme Implementation Quarterly Annually Assessing the consumption organized manufacturing and investment demand sectors growth, outlook. composition, structure Approximately 2,500 public Entire manufacturing sector and private limited employing 10 or more companies in the workers. manufacturing sector.
Industrial Licensing
As per the Industries Development Regulation Act 1951, you need to get license to operate in following industries 1. 2. 3. 4. Distillation and brewing of alcoholic drinks. Cigars and cigarettes of tobacco and manufactured tobacco substitutes; Electronic Aerospace and defense equipment: all types; Industrial explosives, including detonating fuses, safety fuses, gun powder, nitrocellulose and matches; 5. Hazardous chemicals; a. Hydrocyanic acid and its derivatives b. Phosgene and its derivatives c. Isocyanates and di-isocyanates of hydrocarbon, not elsewhere specified (example: Methyl Isocyanate).
These five industries require industrial licensing because of security, strategic and environmental concerns. Example of De-licensed industries are: cement, paint, photo goods, Paper industry, air conditioners, bicycle, food processing etc. Although the entrepreneur does need to file an IEM (Industrial entrepreneurs memorandum to the Secretariat for industrial assistance ->> Department of Industrial Policy and Promotion (DIPP)->>Ministry of Commerce and industries. Lets get some info about those Chemicals known as guncotton. Originally used in film reels but stopped due to explosive nature. Used in pregnancy tests HCN Also known as prussic acid. used in gas chambers for judicial execution in
Nitrocellulose
Hydrocyanic acid
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some U.S. states. COCl2
Phosgene
as a chemical (gas) weapon in WW1. Also used for making plastics and pesticides. Phosgene > Methyl Isocyanate (MIC) >pesticides. CH3NCO
Methyl Isocyanate (MIC)
Union Carbide ltd. Bhopal plant. They used Methyl Isocyanate (MIC) is used for making pesticides. (Brand name Sevin) This gas was the cause for Bhopal gas tragedy happened on 3rd Dec 1984.
Industries reserved:
For small scale sector20 For public sector 1. Atomic energy 2. Rail transport
IEM
Industrial entrepreneurs memoranda Entrepreneurs have to fill these to Dept. of Department of Industrial Policy and Promotion 1. Industrial undertakings that are exempted from obtaining an industrial license 2. For expanding existing industrial undertaking. IEM Provides info. On 1. likely investment flows to industry. 2. Sectoral preferences of investors, 3. perception of entrepreneurs.
Boosting Industrial sector

Govt has done following things 1. 2. 3. 4. DMIC FDI relaxation NMP 2011 e-Biz Project
DMIC and FDI relaxation already discussed in earlier articles, hence skipping here. Lets check the remaining:
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National Manufacturing Policy (NMP) 2011: Objectives

1. 2. 3. 4. 5. 6. Increase share of manufacturing in GDP to 25% within a decade. create additional 100 million jobs over special focus to industries that are employment intensive give vocational skill/training to rural youth industrial growth in partnership of states industrial regulation will be simplified and rationalized
National investment & manufacturing zones (NIMZs)

provided under National manufacturing policy 2011. Out of twelve NIMZs so far announced, eight are along the DMIC. Besides, four other NIMZs have been given in-principle approval 1. 2. 3. 4. Nagpur in Maharashtra, Tumkur in Karnataka, Chittoor district AP Medak district AP
Manufacturing industry promotion board (MIPB)

Provided under National manufacturing policy 2011. Chairman = Commerce minister. a mission mode project under the National e-Governance Plan (NeGP) provides online registration and filling payment services to investors and businessmen. a joint-venture company between the Department of Industrial Policy & Promotion & FICCI. Provides inputs on all aspects of doing business in India. Guides investors on all policy and regulatory issues. Handholding services to foreign investors.
E-Biz Project
Invest India
Circular 1 of 2013
Since 1991, government had been revising the FDI limits via press notes. But later they consolidated all such press notes and other regulation into one document. This document was released as Circular 1 of 2010. Govt. updates it every six months. Latest is Circular 1 of 2013. Effective from 1st April 2013 The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, makes policy pronouncements on FDI through Press
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Notes/ Press Releases But these FDI limits come into effect only after RBI notifies them under FEMA Act 2000. (recall capital account convertibility topic under economic survey ch.6 BoP)
IPR initiatives The Madrid Protocol

Administered by World Intellectual Property Organisation (WIPO) provides for a system for international registration of trade marks. Madrid protocol will help Indian companies register their trade-marks in all member countries under this protocol via single application in one language and one time fees in one currency.
Trademark Amendment Act 2010

Was passed to accede India to Madrid Protocol
I-Mark
I-Mark= Indian Design Mark By Indian design council under Department of Industrial policy and promotion (DIPP) > Ministry of Commerce and Industries. I-Mark is the Indian equivalent of the Japanese G-Mark, the highest quality marking for industrial design in Japan.
Geographical indicators
Already covered in earlier article click me
JK and Hill Areas

For industrialization in hill, remote and inaccessible Transport Subsidy areas.Provides subsidy on transport cost for transporting 1971 Scheme raw material and finished products to and from the location. 100% exemption from income tax, central excise Jammu and Kashmir 2002 (expired in 2012) Himachal, Uttarakhand 2003Similar to above but scheme was valid till Jan 2013. North East Industrial Incentives for new and old units: excise duty Development and 2007 exemption, income tax exemption, insurance etc.. promotion policy
National Electric Mobility Mission Plan (NEMMP) 2020

approved by the National Council for Electric Mobility (NCEM) for increasing the use of electric vehicle (including hybrid cars) in India. Because theyre energy efficient and environmentally friendly. Government will provide R&D support, subsidies, tax reliefs to automobile
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industries involved in this segment.
National Council for Electric Mobility

Apex body for mattres related to electric and hybrid vehicles. Chairman= Minister (Heavy Industries & Public Enterprises). Members= Ministers from the key Central Ministries/Departments, eminent representatives from the industry and academia.
Textile related TUFS

Technology upgradation fund scheme 1999 To provides financial support to textile industry (including powerlooms). government provides interest subsidy to textile units if they take loans for implementing new technology. Not region specific Demand driven (just like MNREGA)
Technical Textiles
Technical textiles are used in aerospace, shipping, sports, agro, defence, medicine etc. Scheme and for growth and Development of technical textiles (SGDTT) Textile research association (TRA) 1. Bombay 2. Syntehtic & art silk mills research association (SASMIRA) 3. South Indian textile research association (SITRA) 4. North Indian textile research association (NITRA) Under SGDTT, they are centre for excellence for Geotech
Agrotech
Meditech
Protech
SITP
Scheme for integrated textile parks Cost cover for common infrastructure (drainage,roads, water supply, telecom lines), buildings etc for textiles industry
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Jute
Known as Golden fiber States ranking (in terms of no. of Jute mills): 1) WB, 2) Andhra, 3) Bihar and UP
Jute Technology Mission

Under Agro ministry (and not under textile ministry)
Jute Geo textile (JGT)

Rural Development ministry will use it to construct about 1000 km of rural roads Indian railways also uses it for track repair and new tracks.
Silk
India produces all 4 commercially known varieties of Silk 1. 2. 3. 4. Mulberry Tasar Eri Muga
In Budget 2013, Chindu raised the duty on raw silk from 5% to 15%.
Central silk board

Central Silk board is a Statutory body under textile ministry. (coir board is also a statutory). For developing silk industry in India For providing basic seed material R&D, training of personnel, monitoring export, prices etc.
SMOI
Silk mark organization of India Silk in India faces unfair competition from man-made substitute like viscose, polyester, nylon etc.
National textile corporation ltd

Central public sector undertaking under Textile ministry Earlier, Government had nationalized certain sick textile mills. National textile corp. looks after their affairs, revises the viable mills and shuts down the unviable ones.
Cotton
India is the only country to grow all 4 species of cultivated cotton viz
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1. Asian (2 species) 2. Egyptian (1) 3. American Upland (1) 2002: Government released BT-cotton seeds for commercial cultivation. BT variety is resistant to cotton insects = farmers need to less insectides. for foodgrains, Government operates Minimum support price (MSP) via FCI But MSP of Cotton implemented via Cotton Corporation of India (CCI)
PMEGP
PMs employment generation scheme Launched in 2008 by merging PMs Rojgar Yojana Rural Employment generation program To general employment opportunities in both rural + urban areas Any individual above 18 years age No income ceiling for assistance.
PSU: delegation
1997Navratna and Miniratna 2009Maharatna Under these schemes, the profit making central public sector enterprises are given extra powers and freedom. Matter falls under Department of Public Enterprises Feb 2013: Bharat Heavy Electricals Limited (BHEL) and Gas Authority of India Ltd.(GAIL) were given Maharatna Status.
Misc facts
Following are given directly / mentioned/ hinted in the industries chapter under India 2013 Yearbook, hence important for MCQs. (otherwise there is no end to stupid misc. facts).
Indias rank in production

Sponge Iron Jute Tractors Silk Cement Cotton Two wheeler Bicycle 1st 1st 1st 2nd after China 2nd after China 2nd after China. Note: Wool is the only natural fiber which India is deficient and has to import it to meet production demand. 2nd after China 2nd After China. (Punjab and TN major producers within India.)
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Salt Nitrogenous fertilizers Crude Steel Foundry
3rd (China is 1st, USA is 2nd) 4th 5th
For boilers, BHEL is the largest manufacturer in India DDT: Hindustan Insecticides ltd is largest producer of DDT in wor. The only other producer is China.
Refrigerators: DC vs FF
Direct Cool (DC) Cheaper, consumes less energy Direct cool refrigerators use natural convection, resulting in instant cooling capabilities, but that leads to frost build up. Youve to manually defrost it. Less Rural areas=frequent power cuts. Hence villagers prefer direct cool refrigerators. Frost Free (FF) More, although price gap is declining between DC and FF given the R&D advancements and competition among companies. do not require any deicing or defrosting through manual means. It is handled automatically. better at maintaining consistent temperatures, and keeping food items fresh for a longer period of time. Preferred by urban junta.
BEE labelling
Bureau of energy efficiency under Ministry of Power More details already given on: http://mrunal.org/2012/09/econ-bee.html
Batteries: Lead acid vs Dry cell

Lead Acid storage
UPS Vehicles (car batteries)
Dry cell
Mobiles Laptops Electronic toys
Gaston Plant (France) Georges Leclanch (France) All lead acid storage batteries Usually non-rechargeable- just use and throw. (although are rechargeable. rechargeable varieties are also available) Zinccarbon Alkaline (zinc and manganese dioxide)
Lead sulfate and Sulfuric acid
rechargeable
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Lithium-Ion (Li-Ion) Nickel/Cadmium (NiCd)
Alkaline batteries in India

In developed countries, alkaline batteries constitute 90% of primary battery market. While in India only 2% while Alkaline is more efficient than Zinc Carbon, but also more expensive. For example Duracell (pink bunny ad) is an alkaline battery. While it runs longer but expensive compared to the zinc carbon version of Nippon, everyready and other Chinamade cells.
Foundry clusters
Cluster Famous for ___ Castings Coimbatore, TN Pumpsets Kolhapur, BelgaumAutomobile Rajkot Diesel Engine Batala, Jalandhar Machinary parts and agro implements
Water treatment plant

1. Primary treatment Remove pollutants that settles or floats
2. Secondary
Degrade the biological content of seweage Clarifiers, oil-water separator devices Remove waste that was missed in primary and secondary treatment stage. Filtration, carbon absorption.
3. Tertiary
Water treatment processes

Biodegradation via bacteria, fungi, algaea and yeast: to breakdown organic matters. To remove organic/ inorganic matter that cannot be biodegraded. Done via Chemical Precipitation, oxidization, neutralization Physical Sedimentation, clarification Biological
Air pollution control equipment

Classified into five types 1. Settling chambers 2. Ventury scrubber
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3. Ionized scrubber 4. Electrostatic precipitator 5. Bag filters
Industrial Gears
Industrial Gears are used for two purposes 1. Rotation speed: increase / decrease 2. Power or torque: increase / decrease Theyre used in elevators, kilns, cranes etc. Gearbox = metal casing in which a train of gears is sealed.
Switchgears
fuses or circuit breakers etc. to control and protect electrical equipment.
Measures to boost MSME sector

Public Procurement Policy for Goods= All the central ministries / departments / central public sector undertakings (CPSUs) shall procure a minimum of 20 per cent of their annual value of goods / services required by them from MSEs. And out of that, 4 per cent procurement from MSEs owned by SC / ST entrepreneurs Govt also provides guarantee cover for loans upto 100 lakh. Capital Subsidy Scheme to help them upgrade their technology. SIDBI set up the India Microfinance Equity Fund in 2011-12
CHALLENGES & OUTLOOK

Manufacturing
India is one of the top ten manufacturing countries though its share in total manufacturing value added (MVA) is only about 1.8 per cent. Due to low-level technology, higher input costs & poor quality infrastructure. While Indias performance is good in labour-intensive sectors such as textiles, wearing apparel & leather products. But Even in these three sectors Indias share was low as compared to China. Latest competitive industrial performance index (CIP) compiled by the United Nations Industrial Development Organization (UNIDO), ranks India 42nd out of 118 countries the same as in 2005. China is ranked 5th.
IIP problem
Last year, IIP has been either negative or very low growth because
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Incoming Investment =decreased. Corporate sectors Profit margin= decreased (thanks to inflation) Loan / credit = becoming expensive. Global economy = not yet fully recovered.
Infra-bottlenecks
Low output of coal = low thermal power generation= electricity shortages. rail, road, & ports projects= not finished in time bound manner. therefore crucial to accelerate the output of core sectors & speed up implementation of crucial big ticket projects. low level of R&D inadequate availability of skilled manpower. India has not improved significantly in terms of the ease of doing business & ranks very low in comparison to other industrial nations. MSME sector = multiple approval & operational restrictions. The process of setting up & exiting business is time consuming & complicated requiring expensive third party assistance. Since states have the major role in administering MSME sector. There is need to create uniform rules, processes in all states. The policy initiatives taken by the government in the recent months made the business sentiment buoyant & have generated some optimism. but there is room for lot of improvement.
Mock Questions
1. Central Statistical organization is responsible for compilation of a. IIP b. CPI c. Both d. None 2. Economic advisor under Commerce Ministry, is responsible for compilation of a. IIP b. WPI c. Both d. None 3. IIP and CPI fall under the ministry of a. Commerce b. Finance c. MSME d. Statistics and program implementation 4. In terms of no. of items, what is the correct sequence (smaller to bigger)? a. IIP, WPI, CPI b. CPI, IIP, WPI c. WPI, CPI, IIP d. None of above 5. IIP includes ___ items a. 399
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6.
7.
8.
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b. 676 c. 200 d. 500 CPI includes ___ items a. 399 b. 676 c. 200 d. 500 WPI includes ___ items a. 399 b. 676 c. 200 d. 500 Which of the following is not a category of IIP? a. Mining b. Manufacturing c. Electricity d. Primary articles What is common between WPI and IIP a. Both have same no. of items b. both are compiled under same ministry c. both have same base year d. none of above What is common between CPI and IIP a. Both have same no. of items b. both are compiled under same ministry c. both have same base year d. none of above OBICUS is compiled by a. Environment ministry b. Finance Ministry c. SEBI d. RBI Annual survey of Industries is compiled by Ministry of a. Finance b. Commerce c. MSME d. Statistics and program implementation Correct Statement about Phosgene a. One has to obtain Industrial license to produce Phosgene b. It can be used as a chemical weapon c. Both d. None Which of the following element is present in Phosgene? a. Phosphorus b. Potassium c. Chlorine d. Zinc Industrial license is necessary for
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16.
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23.
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a. Brewing Alcoholic drinks b. Electronic aerospace equipment c. Matches d. all of above What is common between Methyl Isocyanate and Phosgene? a. Both are used in pesticide industry b. both require industrial licensing c. both are extremely poisonous gases d. all of above Phosgene is used for making a. matchsticks b. film reels c. pesticides d. perfumes In India which of the following areas are reserved for Public sector only a. Defense, Railways b. Nuclear Energy, Railways, Defense c. Defence, Nuclear Energy d. Nuclear Energy, Railways Correct statements about Industrial entrepreneurs memoranda (IEM) a. The Entrepreneurs have to file these to MSME Ministry b. Entrepreneurs donot need to file IEM for industries that require industrial license. c. Both d. None By 2022, National Mfg. Policy 2011 aims to a. create additional 300 million jobs b. increase share of manufacturing sector in GDP to atleast 25% c. Both d. None Who is the chairman of Manufacturing industry promotion board? a. FM b. PM c. Minister of Commerce and industries d. Minister of MSME E-biz project was designed by a. TCS b. Infosys c. WIPRO d. Satyam E-Biz project falls under the ministry of a. MSME b. Finance c. Commerce d. Heavy industries Invest India is a joint venture between ___ and ___ a. ASSOCHAM and FICCI b. Dept of economic affairs and FICCI c. Dept of MSME and ASSOCHAM
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d. Department of Industrial Policy & Promotion & FICCI 25. Which department is responsible for FDI policy announcements? a. Dept of economic affairs b. Department of Financial Services c. Dept of Industrial Policy and Promotion d. Department of Expenditure 26. Under FEMA Act, who is empowered to notify the FDI limits? a. SEBI b. Finance Ministry c. Commerce Ministry d. RBI 27. Madrid protocol is related to a. bilateral trade disputes b. climate change and biodiversity c. Trademarks d. Chemical weapons 28. Madrid Protocol falls under a. WTO b. UN c. WIPO d. ILO 29. Minister of ____ is the chairman of National Council for Electric Mobility. a. Environment and forest b. Commerce and industries c. fiance d. Heavy industries and public enterprises 30. Who directly benefits from Technology upgradation fund scheme? a. Steel and Cement industry b. Heavy industries c. Textile sector d. Automobile sector 31. NITRA and SITRA are associations related to a. automobiles b. agriculture c. textile d. none of above 32. Jute Geo Textiles can be used in contruction of a. Railway tracks b. Rural Roads c. Both d. None 33. I-mark is associated with a. IT industries b. infrastructure projects c. Industrial designs d. None of above 34. Correct Statements a. India produces all 4 commercially known varieties of silk b. India is the only country to grow all 5 species of cultivated cotton
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35.
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c. both d. none which of the following cotton variety is grown in India? a. Asian b. Egyptian c. American Upland d. All of Above Correct statements on PMs employment generation scheme a. applicable to only rural areas b. administered by PMO c. Both d. none Two CPSE that were added in the Maharatna category recently a. MTNL and BHEL b. BHEL and GAIL c. NALCO and BHEL d. None of above China enjoys first position in the production of a. Jute b. Tractors c. Soinge Iron d. Cotton BEE Labelling falls under the ministry of a. Power b. environment and forest c. commerce d. renewable energy Which of the following battery is rechargable a. Lead Acid b. Li-Ion c. NiCd d. All of above Alkaline batteries use a. Zinc-Carbon b. Zinc Manganese Dioxide c. Lead sulfate and Sulfuric Acid d. None of above Ventury scrubber and eletrostatic precipitator are examples of ____ pollution control equipments a. air b. water c. noise d. soil Industrial Gears are used for a. controlling speed b. controlling torque c. both d. none India Microfinance Equity fund is administered by
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a. NABARD b. SIDBI c. Ministry of MSME d. Ministry of Rural Development 45. Competitive industrial performance index is prepared by a. OECD b. UNIDO c. World Bank d. UNTCAD
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Mrunal [Economic Survey Ch10] (Part 1 of 5) Service Sector: Tourist... http://mrunal.org/2013/05/economic-survey-ch10-part-1-of-5-service-s...
[Economic Survey Ch10] (Part 1 of 5) Service Sector: Tourists, Lawyers and CAs
1. Prologue 2. Service sector Definition? 3. FDI in Multibrand Retail Trading 1. FIPB 2. FDI is not permitted in 4. Tourism 5. UNWTO report 6. Indian Tourism challenges: 7. Medical Visa? 8. Surrogacy and medical visa 9. R&D Services 10. Global Innovation index 11. Legal Services 12. Challenges: legal profession 13. FDI in legal services 1. Bar Council of India 2. LPO 3. Free legal aid to Poor 4. Legal Services Authorities Act 1987 5. NALSA 6. LOK ADALAT 14. Accounting and Audit Services 15. Accountancy: challenges 16. Mock Questions
Prologue
Economic Survey ch10 deals with service Sector. Ive further divided into 5 parts (to include relevant stuff from India 2013 Yearbook and other sources) 1. 2. 3. 4. 5. Intro to services, FDI in retail, tourism, legal services, accounting services Postal telecom and IT shipping, aviation and highways railways (including Railways budget)
Service sector Definition?

Services sector covers a wide array of activities for example Complex Telecom, BPO, satellite mapping
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Simple Barber, carpenter, plumber Requiring heavy capital investmentAviation, shipping Labor intensive Tourism Infrastructure related Road, railways, ports, telecom Social sector Education, health, sanitation Thus, there is no one-sizefits- all definition of services. There is always some overlapping and some borderline inclusions.
Services as per National Accounts classification

trade, hotels, and restaurants; transport, storage, and communication; community, social, and personal services financing, insurance, real estate, and business services*; *Business services further includes: computer-related services, R&D, accounting services and legal services, and renting of machinery ( in order of their share in GDP.)
Services as per WTO and RBIs classification

Âbove services (as per National accounts classification) + construction.
FDI in Multibrand Retail Trading

Brazil tops the ranks with retail sales accounting for 70 per cent of Brazils consumer spending, followed by Chile, China, and Uruguay retail market contributes 14 per cent of Indias GDP but organized retail penetration remains low, indicating room for growth. With FDI in multi-brand retail, 1. agricultural products could get vastly improved access to markets 2. at present the retail sector is largely unorganized and has low tax compliance. Hence with the growth of modern retail trade, governments tax collection could also increase.
FDI in retail: Timeline

2006 51% FDI in Single brand retail Jan 2012 100% FDI in Single brand retail Sept 201251% FDI in Multibrand Retail, with conditions.
Conditions on FDI in Multibrand retail

Government will have the first right to procurement of agricultural products State governments/UTs would be free to take their own decisions in regard to implementation of the policy as retail trade is a state subject. Foreign investor must bring at least US $ 100 million investment. He must invest 50% of FDI in backend infrastructure. He must procure at least 30 per cent of manufactured/ processed products from
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Indian small industries. For this purpose Indian Small industries= those which have a total investment in plant and machinery not exceeding US $ 1million. Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per Census 2011 and may also cover an area of 10 km around the municipal/urban agglomeration limits of such cities.
States/UT agreed to Multibrand retail?

Eleven states/UTs, viz. Andhra Pradesh, Assam, Delhi, Haryana, Jammu and Kashmir, Maharashtra, Manipur, Rajasthan, Uttarakhand, Daman and Diu, and Dadra and Nagar Haveli have agreed to permit establishment of retail outlets.
FIPB
Foreign Investment Promotion Board. Looks after FDI approvals. Made up of following Secretaries to the Government of India Secretary under ministry
1. Dept. of Economic affairs (CHAIRMAN) Finance 2. Dept. of Industrial policy and promotion Commerce and Industry 3. Dept. of Commerce 4. Economic Relations 5. Ministry of Overseas affairs External affairs
FDI is not permitted in

1. 2. 3. 4. 5. Lottery, Betting, Gambling, Casinos. Chit funds and Nidhi company Real Estate, Farm Houses tobacco products areas reserved for public sector: 1) Atomic Energy and 2) Railway Transport (other than Mass Rapid Transport Systems). 6. Trading in Transferable Development Rights (TDRs) âs per DIPP circular, plus 7. Legal services 8. Accountancy services. ^ as per Economic Survey ch10.
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Tourism UNWTO report

United Nations World Tourism Organization (UNWTO), HQ: Madrid, Spain Its report: Tourism Highlights 2012 edition shows that Tourism is It is one of the largest generators of employment across the world women account for 70 per cent of the workforce in the travel and tourism industry Hence it generates more inclusive growth than other sectors. International tourist arrivals surpassed the 1 billion mark for the first time in history in 2012,
Indian Tourism challenges:

1. Our tourism industry to overcome the seasonality aspect and promote India as a 365 days destination. 2. multiple taxes on hospitality- and tourism-related activities = tourism product expensive in the form of high hotel rates and high fares; 3. State governments impose luxury tax on hotels= high price and low occupancy in hotels. 4. Luxury tax on hotels in some states is very high and varies from 5 per cent to 12.5 per cent and in some cases it is applicable on printed room rates whereas the actual hotel rates offered to guests are much lower 5. Tourism infrastructure needs immediate attention. Solution: there is plenty of scope for public private partnerships (PPP). User fees could be levied if monuments or tourist sites are developed by the private sector or through PPP. 6. Both J/K and North East have huge tourism potential, but it remains untapped thanks to terrorism and extremism. 7. Negative publicity: I. Often developed countries like US, UK issue travel advisory to their citizen, advising them not to visit India for some fear of terrorist attack / disease outbreak etc. II. Incidents of rape on foreign tourists and Indian Women, the lethargy of our law enforcement agencies. III. Incidents of malaria and dengue, governments inability to provide even basic sanitation in tourist destinations. All of above factors lead to negative profit after tax (PAT) for hotel sector (as per Centre for Monitoring Indian Economys (CMIE).
Medical Visa?
This is a new category of Visa. Introduced to attract foreign tourists coming to India for medical treatment.
Surrogacy and medical visa
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Issue related to surrogacy already covered in earlier article: click me
#1: only medical visa for surrogacy

foreign nationals who are expecting or have had a child through a surrogate mother in India, must apply for Medical visa (and not tourist visa). These (medical visas) will be issued only after furnishing the certificates from respective surrogacy clinics.
#2: gays and unmarried couples= not welcome for surrogacy

Gay couples or singles/ unmarried / live-in couples will not be given visa to enter India for surrogacy. Only Foreign man and woman are duly married and the marriage should have sustained at least for two years. (as per Home ministrys circular)
R&D Services
Foreign investments come in R&D sector of a nation if there is knowledge-oriented manpower is available Governments regulatory environment Is favorable Government provides taxation benefits Government funding of R&D accounts for two-thirds of the total funding. Government support for R&D in India focuses on classical objectives for public R&D funding such as nuclear energy, defence, space, health, and agriculture
Global Innovation index

Prepared by World Intellectual Property Organization (WIPO) and the Institut Europen dAdministration des Affaires (INSEAD) India is ranked 64th in the global innovation index (GII) in 2012 Research done by Indian institutions is not percolating down for commercial usage. Indias capacity for innovation has been lower than that of other BRICS countries except Russia. Universityindustry collaboration on R&D is very low in India, as compared to other BRICS nations except Russia Though India scores better than all BRICS nations on availability of scientists and engineers, as compared to the population. India has one of the lowest ratios of scientists and engineers per million people. Part of this shortage is attributed to the lack of quality higher education institutions. The Report estimates that India will have 25 per cent shortage of engineers in the country by 2025
Legal Services
Indias potential
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1.2 million registered advocates, around 950 law schools, 4 to 5 lakh law students across the country. Every year, approximately 60,00070,000 law graduates join the legal profession in India.
Challenges: legal profession FDI in legal services

FDI is not permitted in legal services. In India the practice of law is governed by the Advocates Act of 1961. Under this Act, foreign law firms cannot practice law in India. International law firms cannot advertise and open offices in India. Foreigners can neither be appointed as partners in Indian legal firms, they cannot sign legal documents and represent clients in India. Indian advocates cannot to enter into profit-sharing arrangements with persons other than Indian advocates.
Advocates in India
To practice law, one has to get registered in the respective state bar council. No person can enroll as an advocate on more than one state bar council. State bar council can disciplinary action against the advocate for professional misconduct. He can appeal against it to Bar council of India and finally to Supreme Court. There are two classes of advocates 1. Senior advocate 2. Other advocates If SC/HC is in opinion that given advocate deserves such distinction, because of his knowledge, virtue or standing. + his own consent. Those whore yet to become senior
Bar Council of India

Statutory body under Advocates Act 1961 (by the way, Law Commission is non-statutory).
Organization
Bar Council of India consists of members elected from each State Bar Council Ex officio members (Attorney General of India and the Solicitor General of India) Chairman and VC (elected amongst its members)
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Functions
Professional conduct and etiquette for advocates. Give policy direction to state bar councils Lay down standards for legal education in India Giving recognition to Law courses taught in universities Promote and support law reform. (The Bar Council of India is opposed to entry of foreign lawyers/law firms in any manner.)
Rangas suggestion on legal services

India has benefited from opening up to foreign competition in many other areas Indian lawyers are offering services across the world via legal process outsourcing (LPO) Therefore, India should explore allowing foreign law firms greater access to the Indian market
LPO
Legal process outsourcing. Example drafting and reviewing legal documents, making applications for patents, and various paralegal and administrative tasks. global financial crisis has increased recession-related litigations (e.g. loan recovery, contract disputes) in developed countries Global financial crisis has also encouraged companies in 1st world, to outsource their legal work to India (given the low cost of legal professionals).
Indias LPO destination

Following factors have favored India as an LPO destination geographical advantage (Indian time zone is distinct from that of the USA and Britain, allowing it to offer legal services round the clock) language proficiency (emphasis on English education), Indian legal system (which is inspired by the legal systems of the USA and UK). Therefore Indian legal professionals can do the outsourcing assignments given to them. Robust IT sector to provide the necessary e-infrastructure for LPO work
Free legal aid to Poor

14 Funda.right 22 Arrested / detained person has right to consult and be defended by a lawyer Not available to alien or those under preventive detention. Equality before law and equal protection of laws available to both citizen and friendly aliens)
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DPSP
39A
Free legal aid to poor and weaker sections of society Justice for all
Legal Services Authorities Act 1987

Free legal aid statutory status to Lok Adalats NALSA (National Legal services authority) to implement the provisions of the Act.
NALSA
National Legal Services Authority (NALSA) Provides free Legal Services to the poors and weaker section of society organize Lok Adalats for amicable settlement of disputes. Give direction to State Legal Services Authorities (I wonder if theyre called SALSA hahaha) Runs legal aid counsel scheme to provide assistance to under trial prisoners who cannot get a lawyer. Runs legal literacy program to provide basic and essential legal knowledge to vulnerable groups (runs Para-Legal Volunteers (PLVs) project) Runs a newsletter Nyaya Deep. Chief Justice of India is the Patron-in-Chief of NALSA.
LOK ADALAT
Statutory body under Legal Services Authorities Act, 1987. Lok Adalat is a forum where the disputes/cases pending in the court of law or at pre-litigation stage are settled/compromised amicably. Lok Adalats award is final and binding on all parties and no appeal lies before any court against it.
Accounting and Audit Services

accountancy service providers in India are self-regulated through a combination of statutory bodies like the Institute of Chartered Accountants of India (ICAI), Institute of Cost and Work Accountants of India (ICWA) Institute of Company Secretaries of India (ICSI). Accounting, auditing, and book-keeping services are a part of business services accounting profession in India is highly developed with the potential to play a greater role internationally. As of Dec 2012, there are more than 50,000 active CA firms.
Accountancy: challenges
FDI is not allowed in this sector
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foreign service providers are not allowed to undertake statutory audit of companies as per the provisions of the laws in India. Indian regulations do not permit exceeding 20 professionals under one firm number of statutory audits of companies per partner is restricted to 20. These regulations need to be relaxed and FDI should be allowed to facilitate tie-ups and penetrate foreign markets- particularly US and EU.
Mock Questions
1. As per the RBI definition, which of the following is a service sector activity? a. Transport b. Real Estate c. Construction d. All of above 2. Which of the following ministries are represented in FIPB? a. External affairs b. Overseas affairs c. Both d. None 3. Chairman of FIPB is a. FM b. PM c. Cabinet Secretary d. Secretary, Dept of Economic Affairs 4. FDI is permitted in a. Chit Funds b. Nidhi Company c. Both d. None 5. FDI is not permitted in a. Real Estate business b. Atomic Energy c. Both d. None 6. Correct Statements a. Luxury tax falls under the purview of State government. b. Taxes on betting and gambling fall under Concurrent list c. both d. none 7. Correct statements a. Government of India introduced Medical Visa for Indian patients seeking hospital treatment abroad. b. Medical Visa is mandatory for foreigners seeking surrogate mothers in India. c. Both d. None 8. Who among the following cannot get Medical Visa for Surrogacy in India? a. Gay couples
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9.
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b. Live-in partners c. Couples who have been married for less than two years d. All of Above which of the following organization is directly associated with Global innovation index? a. APEC b. WTO c. World Bank d. WIPO As per the Global Innovation index 2012, a. University-industrial collaboration is lowest in India, among the BRIC nations. b. Given the various initiatives of Government and demographic dividend, the Engineer-shortage in India will be solved by 2025. c. Both d. None Correct Statements a. A Foreign law firm cannot practice law in India b. An Indian Advocate can register in the Bar councils of more than one state. c. Both d. None which of the following is a non-statutory organization? a. Bar Council b. Press council c. Law Commission d. None of Above Who among the following is an Ex officio member in Bar council of India? a. Attorney General of India b. Solicitor General of India c. Both d. None Who lays down the standards for legal education in India? a. UGC b. AICTE c. Bar council d. None of above Which Article of our Constitution guarantees that an arrested person has right to be defended by a legal representative? a. 19 b. 21 c. 22 d. none of above Correct statements about Lok Adalats a. theyre statutory bodies b. Either party can approach HC, if unsatisfied with Lok Adalats award. c. Both d. None Nyaya Deep is a newsletter run by a. Bar council of India
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b. Law ministry c. Supreme Court d. NALSA 18. What is the function of National Legal Services Authority (NALSA) a. Take disciplinary action against erring judicial officers b. Take disciplinary action against lawyers for professional miscoduct. c. Grant permission to foreign firms that want to open offices in India d. none of above
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Mrunal [Economic Survey Ch10] (Part 2 of 5) Postal Services, Proje...
http://mrunal.org/2013/05/economic-survey-ch10-part-2-of-5-postal-se...
[Economic Survey Ch10] (Part 2 of 5) Postal Services, Project Arrow, INPEX 2013
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33.
British-legacy Extra Departmental branch offices Franchisee Outlets Panchayat Sanchar Seva Kendras PIN Mail: 1st class vs 2nd class National Address Database Management System Rural CPI Meghdoot Millennium Project Arrow Gold coins ePost Speed post eSpeed net Business Post RAKNPA UPU Sorting machines Money transfer: Domestic and International Money order eMO iMO MO videsh International Money transfer ECS POSB Postal Life Insurance (PLI) Philately My Stamp INPEX-2013 Post: 12th five year plan: goals/objectives Timeline: Postal services Mock Questions
British-legacy
1766 1774 Telegraph 1851 Railways 1853 Post Postal system established in India Clive Calcutta GPO under a postmaster general. Warren Hastings Kolkata and Diamond Harbor Dalhousie Mumbai to Thane (34kms)
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Telephone 1881 Kolkata
Ripon
Ministry of Communications and Information Technology (IT) has 1. Department of Telecom 2. DEITY (Department of Electronics and Information and Technology) 3. Department of Post Department of Posts has the largest postal network in the world : More than 1.5 lakh post offices Under this system,personnel,called Gramin Dak Sewas are employed to run the post office for a period not exceeding five hours,and to deliver and convey mails. are opened in urban areas where it is not possible to open a regular Post Office. are opened at Gram Panchayat Headquarters where Post Offices do not exist.
Extra Departmental branch offices
Franchisee Outlets Panchayat Sanchar Seva Kendras PIN

Postal Index Number (PIN) Introduced in 72 6 digit code
How does PIN code work?

Consider the PIN code 380009 First digit 3= Western region (Rajasthan, Gujarat). There are total 9 regions in India, 1-8=geographical and 9th reserved for army postal service. First two digits 38= these indicate sub-region. Number between 36 to 39 denote Gujarat First three digits 380=indicate the Revenue district/circle =Ahmedabad Last three digits 009=indicate the delivery post office = Navarangpura Post office. Back in 2008, there were talks of replacing 6 Digit PIN with 8 digit PAL (Postal address locator).
Mail: 1st class vs 2nd class
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1st class Post cards Inland letters Envelops Surface + air (whenever advantageous) First class mails get free Air mail transmission within India.
2nd class Book packets Registered newspapers Periodicals
Examples
Sent via
Surface (road, railways). They get air lift only if prepaid with air surcharge.
National Address Database Management System

to effectively manage the address database to update the addresses online and help the public in locating correct addresses The application shall be hosted on India Post website and will provide address and pincode search option to the public.
Rural CPI
Postal Department is responsible for collection of data from rural areas to compute the rural consumer price index every month. Btw, recall that Rural CPI is calculated by Central Statistical Organization (CSO) under Ministry of Statistics & Programme Implementation.
Meghdoot Millennium
This software is used by Postal Department for front and back office operations. This software is designed by Centre for Excellence in Postal Technology(CEPT) located at Mysore,Karnataka. By Department of Post To upgrade Post Offices in urban and rural areas both in terms of 1. Improving core services: mail delivery, financial services and counter operations 2. Improving the look and feel of the Post Offices. Indian Post sells 24 carat Gold coins In association with
Project Arrow
Gold coins ePost
1. Reliance Money Infrastructure Limited(RMIL) 2. World Gold Council enables people to send and receive messages or scanned images through e-mail from Post Offices in the country.
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Speed post eSpeed net Business Post
for sending both documents and merchandise upto 35 kilograms.
Internet based track and trace service
Pre-mailing activities for bulk post
Rafi Ahmed Kidwai National Postal Academy(RAKNPA), Gaziabad. is the apex training institute in the Department of Posts. (earlier known as Postal staff college).
Rafi Ahmed Kidwai: bio

regular member of the Khilafat Organisation Ran Non-Cooperation Movement in Barabanki district. 1937: Minister for Revenue and Prisons in UP. Under his stewardship, UP became the first province to curtail the zamindari system 1946: he became the Home Minister of Uttar Pradesh. introduced jail reforms. 1947: Nehru made him Indias first Minister for Communications 1952: Union minister for Food and agriculture (after 1st General election) ICAR also gives a prize named after him, to agricultural scientists. Universal Postal Union (UPU) specialized agency of the United Nations HQ:Berne, Switzerland
RAKNPA
UPU
Sorting machines
@Delhi and Kolkata
LSM every hour
Letter sorting machineLSM can sort approximately 35,000 letters Mixed mail sorterMMS can sort approximately 18,000 flats,packets
MMS and small parcels per hour.
Money transfer: Domestic and International
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Money order
Maximum amount which can be remitted through a single money order is Rs.5000/-. Commission = 5% of the value of money to be transmitted Electronic Money Order(eMO) is a system that facilitates remittance of MOs electronically, for which post offices should have Connectivity by WAN/Broadband. The eMOs can be tracked through Indiapost website. It is an instant web based money transfer service. Amount recieved can also be credited to the savings bank account of the payee. Under this service, a person can send amount from Rs.1000/up to Rs.50,000/-in one transaction. For outward remittances shall not exceed 5000 USD, only 12 transections in a calendar year per person. for inward remittance maximum of 2500 USD can be received at a time. 12 transactions can be received by a single beneficiary in a calendar year. with the help of 1. Western Union financial services 2. Money Gram Payment Systems Inc. USA Electronic Clearance Service (ECS): ECS scheme provides alternative method for bulk payment, payment of interest/salary /pension/dividend.
eMO
iMO
MO videsh
International Money transfer
ECS
POSB
The Post Office Savings Bank(POSB) It operates the Small Savings Schemes of finance ministry on an agency basis.
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Some of the scheme run by POSB 1. 2. 3. 4. Post Office Savings Account Public Provident Fund Scheme National Savings Certificate(VIII Issue) & (IX Issue) Senior Citizens Saving Scheme-2004.
NPS
New Pension System (NPS) for common citizens has been introduced by Government of India with an effect from 1st May, 2009. Department of Posts is listed as Point of Presence (POP) to provide NPS through postal outlets. More details on NPS already given: http://mrunal.org/2013/04/economy-new-pensionscheme-swavalamban-nps-lite-pfrda-meaning-issues.html
Posts: Other functions

Responsibility disbursing wages to Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) beneficiaries through post office savings bank accounts. disbursement of benefits under various schemes such as pensions and conditional cash transfers to women
Postal Life Insurance (PLI)

Started in 1834 PLI plans 1. Whole Life Assurance(SURAKSHA) 2. Convertible Whole Life Assurance(SUVIDHA) 3. Endowment Assurance(SANTOSH) 4. Anticipated Endowment Assurance(SUMANGAL) 5. Joint Life Assurance(YUGAL SURAKSHA) 6. Children Policy Rural PLI (RPLI) plans 1. Whole Life Assurance(GRAMA SURAKSHA) 2. Convertible Whole Life Assurance(GRAMA SUVIDHA) 3. Endowment Assurance(GRAMA SANTOSH) 4. Anticipated Endowment Assurance(GRAMA SUMANGAL) 5. Joint Life Assurance(GRAM PRIYA) 6. Children Policy
Rural postal life insurance plans were launched based on recommendations of Malhotra Committee on Insurance Sector Reforms.
Philately My Stamp
brand name for personalized sheets of Commemorative Postage Stamps brought out by Department of Posts.
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In Feb 2013, MumbaiBy PHILATELIC CONGRESS OF INDIA, the apex body of Philately in India,
INPEX-2013
and the active support of the Department of Post
Stamps released in 2012, 13 will be covered in a separate article soon.
Post: 12th five year plan: goals/objectives

The India Post has more than 1.5 lakh post offices and its reach in the rural India is unmatched. This network spread should be leveraged to provide services to the residents: including e-commerce, banking and financial services. The Indian Postal Office Act 1898 needs to be replaced with a new act keeping in line with the latest trends IT Induction and Modernization implement Sevottama Service Delivery Excellence Model and Quality Certification.
#transport
The department of post has to pay lot money to Railways because Railways charges passenger fares for RMS wagons instead of freight charges. Railways also leads to abnormal delay in post delivery and negative customer reaction. Under 12th FYP, for short distance hauls, use of outsourced/departmental vehicles will proposed instead of railways.
#financial services
setting up Post Bank of India with Processing centres and Customer Call centres, Automatic Teller Machine network etc. new products such as ULIPS and Group policies which will benefit the masses especially in rural areas will also be introduced. payment of online premium of policies via use of hand held devices by PLI/RPLI Sales force and operators.
#social sector
link different local and community institutions such as Aanganwadis and SHGs with postal department. Postal personnel to provide information like weather, agro-prices, farm management and facilitate sale/distribution of farm inputs to the farmer right at his doorstep. deliver social security services and to enable last mile connectivity
Timeline: Postal services

1766 Postal system established in India (Clive) 1774 Calcutta GPO under a postmaster general. (Hastings)
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1840 1972 1986 1997 2003 2004 2006 2008 2008 2011
Worlds first adhesive postal stamp: Penny black (UK) PINCODE system in India Speed Post Business Post ECS ePost iMO Project Arrow eMO My Stamp
Mock Questions
1. What is the correct chronological order in which following services were setup by the British in India? (older to newer) a. Post, telecom, railways b. railways, post, telecom c. post, railways, telecom d. none of above 2. Who established Calcutta GPO? a. Clive b. Curzon c. Hastings d. None of Above 3. Who established postal system in India? a. Clive b. Curzon c. Hastings d. None of Above 4. Department of Posts falls under Ministry of a. Telecommunication b. Home c. Communication and IT d. It is an independent department directly under PM 5. Last three digits of a PIN code indicate a. name of the delivery post office b. name of the district c. name of the state d. name of the region 6. Which of the following is a 1st class mail? a. registered newspapers b. Inland letters c. periodicals d. none of above 7. National Address Database Management System falls under a. UID b. Home Ministry c. Nation Population register d. Department of Post
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8. Who gathers data for computation of Rural Consumer price index? a. Department of Panchayati Raj b. Department of Post c. ASHA worker d. Gram Sabha 9. Meghdoot Millennium is a a. special speed post service of Postal Department b. software used by Postal Department c. vision document of Postal department d. citizens charter made by Postal department 10. Project Arrow is meant for a. Rural post offices b. urban post offices c. both d. none 11. Post offices sell gold coins, in collaboration with a. Muthoot Finance b. World Gold Council c. Both d. None 12. INPEX 2013 was an exhibition for a. Pravasi Bharatiyas b. postal stamps c. Pottery and handicraft d. None of above 13. Rafi Ahmed Kidwai Academy in Gaziabad is associated with a. Department of Post b. Department of Income Tax c. Department of Telecom d. None of above 14. Maximum amount that can be sent via single money order? a. 2000 b. 5000 c. 50000 d. None of above 15. Maximum amount that can be sent via single iMO? a. 2000 b. 5000 c. 50000 d. None of above 16. Department of Post provides international money transfer services with the help of a. Western Union b. Money Gram Payments c. Both d. None 17. Suraksha, Santosh, Sumangal, Suvidha, Gram Priya are some of the insurance schemes offered by a. LIC
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b. Oriental insurance c. United India Insurance d. Department of Post
URL to article: http://mrunal.org/2013/05/economic-survey-ch10-part-2-of-5-postalservices-project-arrow-inpex-2013.html Posted By Mrunal On 05/05/2013 @ 18:41 In the category Economy
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Mrunal [Economic Survey Ch10] (Part 3 of 5) Telecommunication an...
http://mrunal.org/2013/05/economic-survey-ch10-part-2-of-5-teleco...
[Economic Survey Ch10] (Part 3 of 5) Telecommunication and IT: E-Nayana, BOSS, SAMEER, NIXI
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Communication Telecom Tele-density Important org under DoT TRAI TSDAT National Telecom Policy (NTP) 2012 National policy on Electronics, 2012 USOF National optical fiber network National e-governance plan (NeGP) 1. SWAN 2. Common services centres 3. State data centres 4. e-district 5. MSDG 6. INDG Electronic delivery of services bill 2011 NIC 1. NiceMail 2. e-Lekha 3. VAHAAN 4. SAARTHI National knowledge network National knowledge Commission Information technology (Amendment) Act 2008 FESTIVOX BOSS Controller of certifying authorities (CCA) ICERT Societies / autonomous bodies under Deity 1. SAMEER 2. C-DAC 1. GARUDA 2. Meghdoot 3. eAgriEn 4. Bharatiya AFIS 5. E-Nayana Software 6. PARAM 3. STPI
12. 13.
14. 15. 16. 17. 18. 19. 20. 21.
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NIELIT ERNET Media lab Asia NIXI 22. Business Services 23. IT and ITeS 24. IT sector: Challenges
4. 5. 6. 7.
25. 12th FPY: Telecom and IT 1. Spectrum Trading 2. 12th FPY targets for Telecom 3. 12th FYP: Themes for IT 26. Timeline: Telecom and IT 27. Mock Questions first: a correction in the earlier article on Ch.9: IIP contains 682 items clubbed in 399 groups: 1 in Mining, 1 in Electricity and 397 in Manufacturing.
Communication
As your already know from the previous article, Ministry of Communication and Information Technology (Under Kapil zero-loss Sibbal) Contains three departments 1. Department of Posts 2. Department of Telecommunications (also looks after wireless) 3. Department of Electronics and Information Technology (DEITY) We already saw topics related to Department of Post in previous article click me. In the present article, well see the topics related to remaining two departments.
Telecom
India has 2nd largest telecom network in the world after China
Tele-density
It shows the number of telephones per 100 persons. Teledensity @end of Oct 12 Rural Urban Overall Approx. % 41 159 77
Important org under DoT

Name When type R&D PSU (Navratna) C-DOT 84 MTNL 86 What? Centre for Development of Telematics. Telephone/ telecom related research. Serves in
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1. Delhi including four peripheral towns Noida, Gurgaon, Faridabad & Gaziabad 2. Mumbai, including Navi Mumbai and Thane 3. Overseas: Nepal, Mauritius BSNL 2000 PSU (Miniratna) Lolz
TRAI
Telecom Regulatory Authority of India (TRAI) established by an Act of parliament in 1997 (hence TRAI=Statutory body) Chairman=Rahul Khullar To notify the rates at which telecommunication services within India and outside India shall be provided Spectrum management lay down the standards of quality of service to be provided by the service providers conduct the periodical survey of such service provided by the service providers so as to protect interest of the telecom users ensure effective compliance of Universal Service Obligations TRAI also makes recommendations to the Government on a host of issues including conditions for entry of new service providers and terms and conditions of licences granted to service providers
TSDAT
Telecom Dispute Settlement and Appellate Tribunal (TDSAT) Setup in 2000 To hear appeal against any direction/ decision of TRAI to adjudicate any dispute between a licensor and a licensee; between two or more service providers; between a service provider and a group of consumers
National Telecom Policy (NTP) 2012

#1: telecom
1. 2. 3. 4. Do another 2G scam secure, affordable, and high-quality telecommunication services to all citizens. One Nation-One Licence across services and service areas. One Nation-Full Mobile Number Portability and work towards One Nation-Free Roaming 5. Recognize telecom as an infrastructure sector 6. Recognize telecom, including broadband connectivity, as a basic necessity like education and health
#2: rural
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1. Increase rural tele-density to 70 by the year 2017 and 100 by the year 2020. 2. Provide high-speed and high-quality broadband access to all village panchayats through a combination of technologies by the year 2014 and progressively to all villages and habitations by 2020.
#3: internet
1. transition to the new Internet Protocol (IPv6) in the country in a phased and time-bound manner by 2020 2. Work towards Right to Broadband. a. Provide affordable and reliable broadband-on-demand by the year 2015 b. 175 million broadband connections by the year 2017 c. 600 million by the year 2020 at minimum 2 Mbps download speed and make available higher speeds of at least 100 Mbps on demand
National policy on Electronics, 2012

create an ecosystem for a globally competitive ESDM (Electronic System and Design and Manufacturing): infrastructure + industry friendly and stable tax regime. By 2020 achieve Domestic production of 400 billion USD Investment of 100 billion USD Increase EDSM export to 80 billion USD employment to around 28 million people Setup electronic manufacturing clusters Setup semiconductor wafer manufacturing facilities renaming the Department of Information Technology as Department of Electronics and Information Technology (Deity). Cyber security e-waste handling
USOF
Universal service fund obligation For provision of phone lines in non-viable areas More details already covered in www.mrunal.org/2012/09/yb-usof.html
National optical fiber network

For providing broadband connectivity to all 2.5 lakh gram panchayats. Project is funded by Universal service obligation fund (USOF)
National e-governance plan (NeGP)

it has 31 mission mode projects to implement this plan, Department of Electronics and IT (DEITY), has created infrastructure through following
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SWAN
Central government provides technical and financial assistance to the State governments and union Territories for establishing wide area network from HQ to up to block level
Common services centres State data centres
for establishing one lakh Internet enabled centres in rural areas through public-private partnership
to provide common IT infrastructure for hosting the government applications and softwares it is a mission mode project under the national governance plan it aims said electronic delivery of citizen centric services at district and subdistrict level for example issuing certificates of birth, death, domicile, nationality, caste, marriage, income, employment etc social welfare, pension, scholarship, ration card etc. Mobile service delivery Gateway to use the potential of mobile phone for expanding access in reach of public services in India by Department of Electronics and IT M-Appstore= A mobile application store, launcher under MSDG (mobile service delivery Gateway). India Development Gateway Initiative by Department of Electronics and IT (Deity) for providing e-knowledge and ICT-applications for rural empowerment
e-district
MSDG
INDG
Electronic delivery of services bill 2011

seeks to mandate public service provision compulsorily through electronic mode from a specific date for both Central and State government pending under the Parliamentary standing committee on information technology more details on prsindia.org
NIC
National Informatics Centre (NIC)
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under Department of information and technology established in 1976 provides ICT infrastructure for governance NICNET= the ICT network of NIC- it provides network connectivity to all ministries/departments of Central, State governments, union Territories and about 625 districts
Some work done by NIC
NiceMail e-Lekha VAHAAN SAARTHI
NICs E-mail service NICs Electronic payment and accounting system software for automated vehicle registration Software for issuing driving licence
National knowledge network

government approved is project in 2010 NIC is implementing it over a period of 10 years it aims to interconnect higher learning institutions with high-speed internet connection
National knowledge Commission

setup in 2005 high-level advisory body to the Prime Minister of India Chairman= Sam Pitroda Gives policy advice for education, research to transform India into a knowledge society.
Information technology (Amendment) Act 2008

original act was enacted in 2000. Details given in earlier article: http://mrunal.org
/2012/07/yearbook-it-act.html
2008: it was amended to provide for data protection, cyber security and new forms of cyber crimes
FESTIVOX
open source software framework it is used to develop text to speech (TTS) software is for Hindi, Bengali, Marathi, Tamil and other Indian languages. It will be integrated with screen readers in Windows and Linux operating softwares for use of blind people.
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BOSS
Bharat operating systems solution it is a GNU/Linux -based operating system with Indian language support for both desktop and server versions it is an example of free and open source software solution (FOSS) developed by the National Resource Centre for Free/Open Source Software (NRCFOSS) of India under Department of Electronics and IT (DIETY)
Controller of certifying authorities (CCA)

the information technology act provides vehicle wreck nation to electronic records and treats digital signatures at par with the handwritten signatures for this purpose CCA, licenses the certifying authorities to issue Digital Signature certificates such Digital Signature certificates are used in RGTS and NEFT of RBI, emails, chat trading, income tax return etc.
ICERT
Indian computer emergency response team it is the national nodal agency for responding to computer security incidents as and when they occur
Societies / autonomous bodies under Deity

SAMEER C-DAC: Centre for development of advanced computing C-MET: Centre for material of Electronics technology STPI ERNET Media lab Asia NIXI
SAMEER
Society for applied microwave Electronics engineering and research it is an automated research and development laboratory under the Department of Electronics and IT work: doppler radars, observation platforms for Indian meteorological department, medical electronics etc.
C-DAC
Centre for development of advanced computing
GARUDA
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It is a cyber infrastructure connecting computational
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nodes, mass storage and scientific instruments distributed across the country. GARUDA is Indias first national grid initiative bringing together academic, scientific and research communities open source based cloud stack It contains all pre-requisite tools for implement your own cloud network. Application of Electronics in agriculture and environment. This includes electronic nose, region, smell and tongue acknowledges for quality monitoring of agricultural products such as turmeric, Cheney, Rice etc.
Meghdoot
eAgriEn
Bharatiya AFIS
automated fingerprint identification system
E-Nayana Software
for mobile tele-ophthalmology. It allows doctors to examine eye patients via videoconferencing in rural and tribal areas, Softwares helps transferring electronic health records of patients and providing them expert consultation immediately Supercomputer built by C-DAC, Pune.
PARAM STPI
software technology Parks of India established in 1991 for promotion of software exports from India
NIELIT
National institute of Electronics and information technology Formerly known as DOEACC society offers computer courses such as DOEACC O/A/B/C etc. CCC: course on computer concepts, launched in 99, gives 80 hours of basic computer literacy. This course is recognized for job application under State and central services.
ERNET
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Autonomous scientific society It is a mix of terrestrial and satellite based Wide area network (WAN) Serves institutions in health, agro, education, sci-tech and other sectors.
Media lab Asia

Not-for-profit organization To bring the most advanced ICT technologies for the benefit of common man ICT for health, edu, livelihood, rural connectivity and empowerment
NIXI
National internet exchange of India Not for profit organization To facilitate domestic internet traffic between ISP member. This helps in efficient use of international bandwidth, save foreign exchange. Now lets check some stuff from economic survey ch10.
Business Services
It includes computer-related services, R&D, accounting services and legal services, and renting of machinery.
IT and ITeS
has four major sub-components: 1. 2. 3. 4. IT services, business process outsourcing (BPO), engineering services and R&D software products.
IT sector: Challenges
Slowdown and protectionism
global slowdown has impacted the revenues of Indian IT companies. Outsourcing has also become a national/election/political issue in several developed countries, like the USA and the UK. Their governments are now supporting their local/domestic BPO industry through various means e.g. giving tax benefits to companies to dont outsource work. BPO industry in the UK employs 800,000 British workers and is emerging as a vital part of the economy.
Competition
Largest exporters in Computer and IT services 1. EU
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2. India 3. USA But in recent years, many new competitors like China, Israel and the Philippines have emerged. Indias new competitors in Voice contracts / BPO service segment Asia Africa Latin America Europe China, Philippines Malasia Egypt, Morocco Brazil, Mexico, Chile and Columbia Poland, Ireland
According to NASSCOM, in the last five years, India has lost about 10 per cent market share to the rest of the world in the world BPO space, most of which is in the voice contract segment.
Language proficiency
China BPO sector faces challenges in English accent and language proficiency, but their government is spending lot of public funds to improve English at schools and vocational training and thus China may eventually emerge as a threat to India. (means we too need to start a Rajiv Gandhi English proficiency Yojana: RGEPY lolz). Philippines is a serious competitor of India in both hardware and software segments of IT To address the rising wages in the urban BPO space, there is a need to move more towards rural areas, for which skill development, and English language training with American and different European accents is necessary.
12th FPY: Telecom and IT Spectrum Trading

Recall that 2G scam revolves around the controversy that certain companies (like Swan telecom) bought the spectrum but did not start telecom operation. They merely sold it to third company at a higher price (similar to black cinematickets) Historically, in most countries, the Regulator has used a command and control mechanism to decide allocation of spectrum. However, it is being increasingly felt that this system does not allow the spectrum licence holders the flexibility to respond quickly to changes in market demand and technology, This results in chunks of spectrum lying underutilized, and thereby creating an artificial scarcity. Therefore, some countries like Australia, Canada, New Zealand, and some EU countries have permitted spectrum trading in the secondary market. (just like how shares and bonds are traded). Spectrum trading is likely to improve spectrum efficiency, boost market
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competition and provide incentives to innovation to service providers
12th FPY targets for Telecom

1. By 2017 a. Provide of 1200 million connections b. increase rural teledensity to 70% c. Broadband connection of 175 million 2. Commissioning of National Optical Fibre Network (NOFN) 3. Making India a hub for telecom equipment manufacturing 4. Provide preferential market access for indigenously manufactured products. 5. Adopt green policy in Telecom 6. incentivize use of renewable energy sources.
12th FYP: Themes for IT

1. 2. 3. 4. 5. 6. 7. e-Government e-Learning e-Security e-Industry (Electronics System Design and Manufacturing) e-Industry (IT-ITeS) e-Innovation/R&D e-Inclusion
Timeline: Telecom and IT

1851 1881 1913 1945 1968 1976 1981 1986 1987 1988 1991 1997 2000 2005 2008 2009 2010 2012 1st Telegraph line: Kolkata and Diamond Harbor Telephone service introduced in Kolkata 1st automatic exchange @Shimla WIPRO TCS- Tata Consultancy Services NIC Infosys MTNL SATYAM C-DAC software technology Parks of India TRAI BSNL National knowledge Commission 122 licenses for 2G spectrum auctioned on first-come-first-serve basis (@2001s prices) and thus came the 2G scam. Satyam accounting scandal National knowledge network SC cancelled the 122 licenses for 2G given by the totally awesome you know who.
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World Conference on International Telecommunications (WCIT) in Dubai. more details already covered in old article click me 2017 Increase rural tele-density to 70 2020 Increase rural tele-density to 100 2012
Mock Questions
1. Correct Chronological order (older to newer) a. BSNL, MTNL, TRAI b. TRAI, BSNL, MTNL c. MTNL, BSNL, TRAI d. None of Above 2. Rahul Khullar is the chairman of a. CCI b. BSNL c. MTNL d. TRAI e. None of above 3. Which of the following is not related with National Telecom Policy 2012? a. Mobile number portability b. Broadband penetration c. IPV6 d. Electronic System and Design and Manufacturing 4. National Telecom Policy 2012, wants to increase Rural tele-density to 100 by a. 2015 b. 2020 c. 2017 d. 2025 5. Teledensity is measured as a. No of telephones per 100 persons b. No of telephones per 1000 persons c. No of telephones in the given area d. No of telephones in the given telecom circle 6. National optical fiber network aims to provide broadband connection to a. Institutes of higher learning b. Primary and secondary schools c. Courts d. Gram Panchyats 7. M-Appstore belongs to a. Google b. Apple c. DEITY d. Blackberry/RIM 8. India Development Gateway is an initiative of a. FICCI b. Commerce Ministry c. Ministry of MSME d. Department of Electronics and IT 9. What is the purpose of India Development gateway?
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10.
11.
12.
13.
14.
15.
16.
17.
18.
a. Raise funds for Development of MSME b. Provide vocational skills to Rural entrepreneurs c. provide e-knowledge and ICT apps for Rural empowerment d. None of Above NIC falls under a. DEITY b. National knowledge Commission c. National knowledge network d. Dept of Telecom NICEMAIL is a service of a. NIC b. Yahoo c. Blackberry/RIM d. None of above VAHAAN is a. a software for automated vehicle registration b. a voice based GPS navigation system for vehicles c. a software to track cargo-trucks via GPS d. None of above What is SAARTHI? a. a robot to drive vehicles for physically handicapped persons b. a voice based GPS navigation system for vehicles c. Software to issuing driving licenses d. None of above Correct statements about National knowledge network a. It is a high level advisory body to PM of India b. Sam Pitroda is its chairman c. It aims to interconnect institutions of higher learning with highspeed internet connection d. None of above BOSS operating system is meant for a. Desktop PC b. Servers c. Both d. None Which of the following org. is/are related with Dept. of electronics and IT? a. SAMEER b. C-DAC c. Media lab Asia d. All of above which of the following software is not Developed by CDAC? a. GARUDA b. Meghdoot c. Meghdoot millenium d. E-nayana E-Nayana software is meant for a. Tele-ophthalmology b. doing retinal scans for UID c. both
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d. none 19. What is the new name of DOEACC society? a. C-DAC b. C-DOT c. NIELIT d. NIXI 20. What is the purpose of Media lab Asia a. Telecast doordarshan programs in South east Asian countries b. Produce documentaries from neighboring countries for Prasar Bharti c. Bring ICT technologies for benefit of common man d. None of above 21. NIXI falls under a. NASDAQ b. SENSEX c. DEITY d. None of Above 22. Among the following, which company is oldest? a. TCS b. Infosys c. WIPRO d. SATYAM 23. Among the following, which company is youngest? a. TCS b. Infosys c. WIPRO d. SATYAM 24. Correct Chronological order (older to newer) a. NIC, National Knowledge Commission (NKC), National knowledge network (NKN) b. NIC, NKN, NKC c. NKC, NIC, NKN d. None of above 25. Bharatiya Automated fingerprint identification system is developed by a. DRDO b. C-DAC c. CSIR d. None of above 26. World Conference on International Telecommunications (WCIT) 2012 was held in a. Quebec b. Dubai c. Doha d. None of above
URL to article: http://mrunal.org/2013/05/economic-survey-ch10-part-2-of-5telecommunication-and-it-e-nayana-boss-sameer-nixi.html Posted By Mrunal On 05/05/2013 @ 23:22 In the category Economy
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Mrunal [Economic Survey Ch10] (Part 4 of 5) Services: Road Transp...
http://mrunal.org/2013/05/economic-survey-ch10-part-3-of-5-services-...
[Economic Survey Ch10] (Part 4 of 5) Services: Road Transport, Shipping, Aviation, sethusamudram, FANS, Greenfield airports
1. Roads 1. Width of National highways 2. Org 4 highway construction 3. Where does NHDP get money? 4. BRO 5. Central Road Fund 6. Bharat Nirman 1. Rural Housing 2. Roads 3. Electrification 4. Telephone Connectivity 5. Drinking Water 6. Irrigation. 7. Pradhan Mantri Gram Sadak Yojana (PMGSY) 8. 12th FYP: Road Transport 9. Electronic Toll Collection (ETC) 10. NATRIP 11. SARDP-NE 2. Shipping 1. Major ports: East vs West 2. National Automatic Identification System (AIS) 3. Transchart 4. Vallarpadam 5. Sethusamudram project 6. Adams Bridge / Ram Sethu 7. Maritime agenda 2020 8. Shipping: Challenges 9. Inland Water transport authority of India 10. Kaladan Multimodal Transport Project 11. Indian waterways: challenges 12. 12th FYP: Inland Water Transport 3. Aviation 1. Chicago convention 2. ICAO 3. Airlines in India 4. DGCA 5. Bureau of civil aviation security 6. Pilot Training 7. AAI 8. FANS
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12th FYP: Aviation 4. Mock Questions
9. 10. 11. 12. 13. 14. 15.
GAGAN Air India Pawan Hans Helicopter ltd Aviation: recent Developments Aviation Challenges: Greenfield and Brownfield
Roads
Name
National Highways State highways district roads village roads
Responsibility of
Central Government State Government Zila Parishad Gram Panchayat
Connect
State capitals State Capital to District HQ District HQ to tehsil and Blocks Villages to neighboring towns
in terms of total road length (bigger to smaller): Other roads >> State highways >> National highways / expressways within national highways, in terms of total road length: (bigger to smaller)= Double lane >>(4/6/8 lane) >>Single lane National highways comprises only 2.0 per cent of the road network but carry 40 per cent of the road-based traffic.
Width of National highways

in case of single lane highway: 3.75 meter in case of multilane highway: 3.5 meter per lane.
Org 4 highway construction

done by three organizations 1. National highways authority of India (NHAI) 2. State Public Works Department (PWD) 3. Border roads Organization (BRO)
Where does NHDP get money?

Budgetary Support A part of cess (under Central Road Fund) is allocated to National Highway Authority of India (NHAI) to fund the NHDP External Assistance through World Bank, ADB, JBIC, and so on. Public Private Partnership(PPP) Market Borrowings by NHAI
BRO
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started operation in the 60s, we just two projects East: Project Tusker (renamed into project Vartak) West: Project Beacon BRO also developed roads abroad, eg Delaram Zaranj road in Afghanistan, and highways in Bhutan, Myanmar.
Central Road Fund

Under the Act of 2000 Money comes from Rs.2 per liter as cess on petrol and High speed Diesel. (additional excise duty) Money thus collected, first goes to the Consolidated Fund of India from there, Central Government allocates money to Central Road Fund (CRF) from time to time, after deducting the expenses of collection. Money is used to develop and maintain national, state and village roads + railway overbridges, underbridges and other safety measures
Bharat Nirman
Has 6 components for basic rural infrastructure and one of them is roads. Component Target (by 2012)? 1.2 cr houses by 2014 All weather roads to all villages with population 1000 (500 for hill/tribal areas) electrify 1 lakh villages and to provide free electricity connections to 175 lakh BPL households by March 2012 40% rural teledensity by 2014broadband connection to all 2.5 lakh gram panchayats setup Bharat Nirman Seva Kendra @Panchayat Level initially Under ministry of rural Development, now under Ministry of Drinking water and sanitation. Under ministry? Indira Awaas Yojana under Rural Development ministry. Pradhan Mantri Gram Sadak Yojna under Rural Development ministry. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) under Power ministry.
Rural Housing Roads
Electrification
Telephone Connectivity
Ministry of Communication and IT
Drinking Water
safe drinking water to all uncovered habitations
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Irrigation.
Bring additional 1 crore hectare land under irrigation
Under Ministry of Water resources
Pradhan Mantri Gram Sadak Yojana (PMGSY)

Launched in 2000 National rural roads Development agency under Rural Development ministry looks after this. (and not NHAI under highways ministry) programme seeks to connect all habitations With population of ___ (as per 2001 census) 500 and above In Plain areas hill states (North East, Sikkim, HP, JK, Uttarakhand) tribal (Schedule 5) areas Desert Areas
250 and above
12th FYP: Road Transport

Highways
Golden Quadrilateral and NorthSouth and EastWest corridors will be finished. Development of road corridors in Delhi Mumbai industrial corridor project National and State Highways would be upgraded to minimum two lane standard by the end of the Plan. development of 15600 km of express-ways would be developed The National Highways had added 10000 km in the Eleventh Plan. Another 10000 kms will be added during the Twelfth Plan so that the total length of the highways becomes 91200 km.
Port connectivity
special links for feeder roads to important railway routes and ports. This is essential for development of domestic and international trade. road connectivity for about 50 minor ports road connectivity for 24 Airports
Rural areas
All villages will be connected with all-weather roads by the end of the Plan.
Naxal areas
Roads in Left-Wing Extremism (LWE) affected districts will be continued and works taken up earlier in the Eleventh Plan be completed during the Plan.
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Special Package for development of roads in the Schedule Areas (under Fifth Schedule) under Tribal Sub-Plan1000 km.
JK and North East

Road Development in the North-East: Trans-Arunachal Pradesh Highway. The capacities of NHAI and BRO would be further developed for this purpose. State roads in the State of J&K from strategic considerations
Misc
Reforms in Motor Vehicles Act to simplify inter-State movement with simplified procedures. Creation of truck terminals to ease traffic congestion
Electronic Toll Collection (ETC)

Committee was set up under the Chairmanship of Shri Nandan Nilekani Recommendations of the Committee have been accepted and notified by the Ministry of Road Transport and Highways for the use of National Highways. pilot project on ETC was inaugurated in 2012 on a section of NH-5 between Delhi and Parwanoo. second pilot project on the Mumbai and Ahmedabad
NATRIP
The National Automotive Testing and R&D Infrastructure Project (NATRiP) under Department of Heavy Industry (with representatives from automobile sector) to set up testing, validation and R&D infrastructure across seven locations in India.
SARDP-NE
Special accelerated road Development program for North Eastern Region For improving road connectivity between State Capitals and District HQs in North Eastern Region.
Shipping
100% FDI is allowed in shipping sector Indias coastline: 7517 km 9 Maritime states (5 in Western coast and 4 in Eastern Coast) 13 major ports (guided by Central Government) and 200 non-major (minor) ports (guided by respective State governments)
Major ports: East vs West

West East
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name 1. Jawahar Nehru, Nhava Shewa
state
Name 1. Haldia/Kolkata
state 1. WB
1. MH 2. Mumbai 2. Vishakhapatanam 3. Paradeep (deepest harbor) 2. AP
3. Kandala
2. Guj
3. Odisha
4. Mormugao (@Zuvari estuary) 5. New Mangalore 6. Cochin
3. Goa
4. Tuticorin 4. TN
4. Karnataka 5. Kerala
5. Chennai 6. Ennore 7. Port Blair Anadaman Nicobar
Older books would say 12 major ports but in 2010, Port Blair was added as the 13th major port.
Important org. under Shipping ministry

It is a statutory authority under the Merchant Shipping Act, 1958 examination and certification of Merchant Navy Officers seamen: employment, welfare development of coastal shipping To Help vessels to safely navigate in in Indian coastal waters. Navaratna PSU
Director General of Shipping
Director General of light houses and light ships Shipping Corporation of India
International Maritime Organization (IMO)= specialized agencies of UN, HQ: London.
National Automatic Identification System (AIS)

To provide information about the ship to other ships and to navy, coast guard etc. automatically. This information includes the ships identity, type, position, course, speed,
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navigational status. Prevents collision, helps in search and rescue operations and coastal surveillance. Contract given to Swedish defense company Saab- they fitted systems on Indian lighthouses for AIS tracking. Data will be used by directorate general of lighthouses and lightships (DGLL), the Navy, Coast Guard and DG Shipping.
Transchart
It is the centralized ship chartering wing of the shipping ministry. to make shipping arrangements for Government Controlled cargoes
Vallarpadam
Indias first dedicated international container transshipment terminal setup here. This project reduces our dependence on foreign ports for transshipment of Indias export-import containers.
Sethusamudram project
Sethu Samudram is the sea that separates Tamil Nadu, India from Sri Lanka. It encompasses the Gulf of Mannar, the Palk Strait, and Adams Bridge(Ram Sethu). Sethusamudran Project will create a shipping canal linking the Palk Bay and the Gulf of Mannar between India and Sri Lanka. This will reduce the time (and fuel) for ships navigating through the region.
Adams Bridge / Ram Sethu

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It is a discontinuous chain of sandbars and corelreefs between 1. Rameswaram island (India) and 2. Talaimannar (Sri lanka) Sethusamudram project aims to dredge the shallow ocean region here and create an artificial passage for ships.
Anti Agruments
R.K. Pachauri Committee (appointed by PM) said entire Sethusamudram project is unviable: from both economic and ecological point of view. Yet central Government adamant to launch it In Supreme Court, TN Government said it was against this project because 1. The project is a serious threat to the biodiversity of the region and will affect the livelihood of the fishermen. 2. + sensitive religious sentiments of the people of the country, given that Ram Sethu said to have been built by Lord Ramas army to reach Lanka. TN Government also wants central Government to declare Ram Sethu as national monument.
Pro-arguments
The project will reduce the shipping time and fuel costs Itll improve ship traffic (and income) for the minor ports of TN, Andhra, Odisha and WB
Maritime agenda 2020

for the decade 2010 to 2020 by Ministry of shipping to increase the growth in shipping sector To create a port capacity of around 3200 MT promote coastal shipping as it will help in decongesting our roads and is environment friendly. increase Indias share in global ship building to 5% from the present 1%. Increase Indian seafarers (personnel) in the global shipping industry.
From Economic Survey

95 per cent of Indias trade by volume and 68 per cent in terms of value is transported by sea 31 January 2013, India had a fleet strength of more than 1100 ships public-sector Shipping Corporation of India having the largest share. India is one of the major ship-breaking destinations. India is also one of the major countries supplying seafarers.
Shipping: Challenges
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Baltic Dry Index

It is the the barometer of merchandise trade as well as shipping services, It has been in the red since the global crisis of 2008 (more discussed in ch.7 click me)
Ageing ships
Indian ship fleet is ageing. There is urgent need to increase the shipping fleet so that it is adequate atleast to meet Indias trade volumes. A large and modernized shipping fleet will lead to higher growth, employment and higher earning/ saving of foreign exchange, It will also increase our bargaining power with foreign liners who carry Indian cargo as per their schedule and also discriminate in the transport rates.
Port Services
Performance of shipping services and merchandise trade depends on the efficiency of ports. There was a decline in traffic at major ports, which accounted for more than 60 per cent of total traffic As per the World Shipping Council, Shanghai port ranked at the top in terms of total cargo volume handled The Jawaharlal Nehru Port Trust (JNPT) is ranked 30th in terms of total cargo volume handled in 2011 Thus efficiency of our ports needs to be improved further. Government has been following the strategy of increasing investment in infrastructure through a combination of public investment and PPP. The Twelfth Five Year Plan with an outlay of more than 3000 crores for the port sector
Taxation
Against its counterparts, Indian shipping as against its counterparts is currently subjected to 12 types of taxes.
Manpower
Seafarer= A man who serves as a sailor. Main Seafarer supplying countries = China, Philippines, Turkey and Ukraine India should take advantage of its demographic dividend to supply more officers in the international maritime sector. Government has established an Indian Maritime University (IMU) in Chennai, with campuses in Kolkata, Mumbai, Visakhapatnam, Kochi, Chennai and Kandla. But more needs to done. There is need for welfare measures for seafares, including a free/subsidized health and insurance policy. Indian ships have to mandatorily employ Indian seafarers, and cannot employ
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foreign sea-farers as per the Merchant Shipping Act. This needs reform.
Inland Water transport authority of India

For development and regulation of inland waterway Indias Inland Waterways which totals about 14500 kilometers in length
National Inland waterway

1. Allahabad-Haldia stretch of the Ganga- BhagirathiHooghly river system 2. Sadiya-Dhubri stretch of Brahmaputra river 3. Kollam-Kottappuram stretch of West Coast Canal along with Champakara canal and Udyogmandal canal
Length (km)
1620 (longest) 891 (third longest) 205
4. Kakinada-Puducherry stretch of Canals and the Kaluvelly 1078 (second Tank, Bhadrachalam-Rajahmundry stretch of river Godavari longest) and Wazirabad- Vijayawada stretch of river Krishna 5. Talcher-Dhamra stretch of rivers, Geonkhali-Charbatia stretch of East Coast Canal, Charbatia-Dhamra stretch of Matai river and Mahanadi Delta rivers 6. Lakhipur Bhanga on Barak River, Assam (bill pending in parliament)
588
121
btw, longest national (road) highway= #7 connecting Varanasi with Kanyakumari.
Kaladan Multimodal Transport Project

This project was conceptualised by the Ministry of External Affairs to provide alternative connectivity from Mizoram to Haldia/Kolkata ports through River Kaladan in Myanmar. Some other projects/ports for inland water transport: 1. Pandu port in Guwahati 2. Palatana Power Project in Tripura
Indian waterways: challenges
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Large parts of Indian Waterways have inadequate Least Assured Depth (LAD) for commercial movement of cargo. at least 2.5 m, preferably 3.0 m. LAD is necessary for round the year navigation Several rivers meander (move in spiral / curved / snake like shape) =resulting in increase in distance to be travelled on water-ways as compared to road and rail. Then it becomes uneconomical to transport cargo via river. On many rivers, there are bridges with low vertical clearance which impede passage of bigger vessels on the waterways such as NW-3. These bridges need to be raised to atleast 5m. water tourism theme has potential to generate considerable income for the local economies and additional income from tourism. For example, in Kerala, over 2000 people are employed in houseboats and other motorboats that cruise the inland waterways filled with tourists.
12th FYP: Inland Water Transport

policies to promote manufacture of Inland Waterways Vessels for cargo movement by private sector Development of National Waterway 4 and 5 Development of night infrastructure facilities to help 24 hours navigation. Promoting connectivity with Bangladesh
Aviation
Sector Scheduled air transport/domestic scheduled passenger airlines Helicopter services Airports: Greenfield projects Airports: existing projects FDI permitted 49% FDI (100% for NRI) 100% 100% 100%
Chicago convention
Held in 1944, for aircraft registration and safety. Led to birth of ICAO, the specialized agency of UN international air travel.
ICAO
International civil aviation organization (ICAO) HQ: Montreal, Canada India is member since inception of ICAO.
Airlines in India
Public sector: Air India and its subsidiaries Private sector 1. Jet Airways = Naresh Goyal
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2. 3. 4. 5. 6.
Jetlite Airlines (originally owned by Sahara, now by Jet Airways) Kingfisher =you know who. Spicejet = Sun group (of Kalanidhi Maran) Interglobe Aviation (IndiGO) Go Airlines
Three cargo airlines 1. Deccan cargo (Deccan 360) =under Kingfisher. 2. blue aviation 3. express Logistics
DGCA
directorate general of civil aviation it is the regulatory body in the field of civil aviation registration of civil aircrafts gives license to pilots, airlines maintenance engineer supervision of flying/gliding clubs investigation of minor accidents implementing Chicago Convention
Bureau of civil aviation security

initially it was a cell in DGCA, now an independent department under the Ministry of civil aviation, after Kanishka Tragedy in 85 for matters related to hijacking, training of civil aviation security personnel
Pilot Training
Indira Gandhi Rashtriya Udan Akademi (IGRUA) in Raebareli UP WOMBAT: pilot aptitude test Trainer TALON: the pilot training at IGRUA is managed by this web based training Management system. Rajeev Gandhi National flying training Institute in Gondia Joint venture of AAI + a Canadian company
AAI
it is a public sector undertaking (PSU) under Ministry of civil aviation for development and Management of airport infrastructure
FANS
Future air navigation system AAI implementing it. Includes
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Shifting from To voice communication digital data communication ground based navigation satellite-based navigation (GAGAN)
GAGAN
GPS aided Geo augmented navigation system it is a satellite-based navigation system development by AAI + ISRO GAGAN GPS devices help pilot to fly in difficult weather, fog, tough terrains. GAGAN will also help in high-quality Air Traffic Management (ATM) to all modes of transportation, including maritime, highways, railways public services such as defense services, security agencies disaster recovery management by aiding in search and rescue to locate the disaster zone accurately, telecom industry and personal users of position location applications.
Air India
Chief: Rohit Nandan
Subsidiaries of Air India

Hotel Corporation of India Vayudoot ltd Alliance Air (it has other subsidiaries too but they contain air India in their name, hence unworthy of tricky MCQs hahaha)
Pawan Hans Helicopter ltd

it is a government-owned company provides helicopter service to ONGCs offshore drilling platforms hilly and inaccessible areas Amarnath Yatra emergency evacuation
Airport economic regulatory authority (AERA)

to foster healthy competition among major airports regulate airport tariffs
Aviation: recent Developments

Dharmadhikari Committee was setup by Civil Aviation ministry to address the contentious HR issues caused due to merger of AirIndia and Indian airlines. State Government of Kerala wants to launch Air Kerala. (more details on Pravasi Bharatiya article click me)
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Tata and Malaysias Air Asia formed Joint venture to enter in Domestic airline business In India. Jet Airways (Naresh Goyal) sold (FIPB) to sell 24% stakes in the company to Etihad Airways (Abu Dhabi, UAE based) Air India has warned the government that foreign investment (e.g. Jet Etihad) will hurt the interests of domestic airlines and prevent Indian airports from developing into international hubs. (lolz in other words, Air India is saying that since we dont have the aukaat to grow, dont let others grow either!).
Aviation Challenges:
#ATF
high taxation on aviation turbine fuel (ATF) ATF alone accounts for 40% of the operating cost of Indian airlines ATF is priced 60% higher in India compared to other countries in the region ATF should be accorded the status of Declared Good that carries lower and uniform tax rate.
#predatory pricing
Predatory pricing is the practice of selling a product or service at a very low price, to drive competitors out of the market, or to prevent potential new competitors from coming in the market. Indian airlines often use the predatory pricing to destroy their competitors (and in the process bleed and make losses for themselves as well).
#Other
High aircraft to man ratio Loss making Airindia and its frequent strikes.
Greenfield and Brownfield

Greenfield
Setting up new project in a virgin / vacant site. International airport @Devanahalli near Bengaluru.It is a PPP involving Larsen n Toubro, Siemens International airport @Shamshabad near Hyderabad.PPP involving GMR group and Malaysian company. Both PPP projects have BOOT model: Buildown-Operate and Transfer.
Brownfield
Redevelopment in site where buildings, infrastructure already exists. Chhatrapati Shivaji International Airport, Mumbai
Delhi International Airport, DIAL
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Another greenfield airport that has been in news= Panvel, Navi Mumbai because of environmental issues.
12th FYP: Aviation

Encouraging emergence of regional airlines to cater to air transport needs of Tier II and Tier III tours and promoting low cost carriers for this purpose Double of passenger handling capacity of Airports primarily through private investments (PPP). Upgradation of Air Navigation Services (ANS) using the latest technology New Policy for ATF to improve Airline competitiveness Set up of National Aviation University
Mock Questions
1. What is the width of single lane highway in meters? a. 3 b. 3.5 c. 3.75 d. 4 2. Which of the following is/are sources of funding for NHDP? a. Cess b. External assistance from World bank, ADB c. Market borrowing d. All of above 3. Project Vartak, Beacon are associated with a. Ministry of Environment and Forest b. DG Shipping c. BRO d. None of above 4. Central Road fund is utilized for Development of a. national highways b. village roads c. railway overbridges d. all of above 5. Which of the following is not a component of Bharat Nirman? a. Rural housing b. rural roads c. irrigation d. rural employment 6. Pradhan Mantri Gram Sadak Yojana falls under Ministry of a. Highways and roads b. Panchayati Raj c. Social welfare d. Rural Development 7. PMGSY seeks to provide all weather roads to habitations in plain areas with population ____ or above as per 2001 census a. 500
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8.
9.
10.
11.
12.
13.
14.
15.
16.
b. 1000 c. 1500 d. none of above National Automotive Testing and R&D Infrastructure Project (NATRiP) is associted with ministry of a. HRD b. Communication and IT c. Heavy Industries and Public enterprises d. Science and Technology Lenght of Indias coastline in Kms a. 7513 b. 7515 c. 7517 d. none of above Correct Statement a. India has 9 maritime states b. 5 on Eastern Coast c. 4 on Western Coast d. None of above On Eastern coast, which state has maximum number of Major ports? a. WB b. AP c. TN d. None of above On Western coast, which state has maximum number of Major ports? a. Guj b. MH c. Karnataka d. None of above In India, which state has maximum number of Major ports? a. MH b. TN c. Goa d. None of above National Automatic identification system (AIS) is meant for a. habitual criminals b. heavy vehicles c. endegered wild species d. Ships Sethusamudran Project wants to connect ____ and ____. a. Adams bridge, Ram Sethu b. Gulf of Myanmar, Bay of Bengal c. Gulf of Mannar, Palk Bay d. None of above PM had formed a Committee for Sethusamudram Project, who was its chairman? a. Justice JS Verma b. DD Gadgil c. RK Pachauri d. None of above
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17. Maritime Agenda 2010-2020 is related to a. International Maritime Organization b. BIMSTEC c. Ministry of Shipping d. None of Above 18. Which National inland waterway is lengthiest? a. 3 b. 5 c. 7 d. None of above 19. Which national highway is lengthiest? a. 3 b. 5 c. 7 d. None of above 20. 6th National inland waterway is associated with ___ river a. Barak b. Luni c. Krishna d. None of above 21. Kaladan multimodal transport project aims to connect ___ with ____. a. Dhaka, Kolkata b. Aizwal, Kohima c. Mizoram, Kolkata d. Myanmar, Assam 22. GAGAN is jointly Developed by ___ and ____ a. ISRO, CSIR b. ISRO, Airforce c. AAI, Airforce d. AAI, ISRO 23. Which of the following is not a subsidiary of Air India a. Hotel Corporation of India b. Vayudoot Ltd c. Alliance Air d. Express Logistics 24. Which of the following is a site for greenfield airport a. Devanahalli b. Shamshabad c. Panvel d. all of above 25. Which of the following is not a function of DGCA? a. registration of civil aircrafts b. supervision of flying/gliding clubs c. Management of airport infrastructure d. all of above 26. In India, Future air navigation system (FANS) is being implemented by a. Airforce b. DRDO c. AAI
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d. None of above
URL to article: http://mrunal.org/2013/05/economic-survey-ch10-part-3-of-5services-road-transport-shipping-aviation-sethusamudram-fans-greenfieldairports.html Posted By Mrunal On 07/05/2013 @ 13:06 In the category Economy
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Mrunal [Economic Survey Ch10] (Part 5 of 5) Railways: Anubhuti, ...
http://mrunal.org/2013/05/economic-survey-ch10-part-5-of-5-railways...
[Economic Survey Ch10] (Part 5 of 5) Railways: Anubhuti, Spart, Project Unigauge, Budget, World Heritage
1. Introduction 2. British Legacy: Railways 3. Gauges 1. Project UniGauge 2. Bigger to smaller 4. PSU under Railways ministry 1. Konkan Railways 5. Separation of Railway budget 6. UNESCO World heritage: Indian Railways 7. Trains: Luxury 8. Trains: normal 9. Railway Police 10. Metro Rail Amendment Act 2009 11. Kisan Vision Project 12. Bullet trains 13. bio-toilets 14. Rail Budget 2013 1. SPART 2. Azadi Express 3. Next Generation e-ticketing system 4. Adarsh Station 5. Anubhuti coaches 6. LHB Coaches 7. For women 8. IT initiatives 9. Customer satisfaction 10. for Handicapped passengers 11. Rail Tourism 12. Green Energy Initiatives 13. For its own staff 14. Fiscal discipline, future plans 15. Transport Overall Challenges 16. 12th FYP: Railways 1. Inclusiveness 2. Economy 3. Safety 4. Pollution 5. high-speed trains 6. Rationalize tariffs 17. Mock Questions
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Introduction
Lets recap, where were we? Economic Survey ch 10: services (+yearbook + 12th FYP + pib.nic.in) under that, four articles already done 1. 2. 3. 4. Tourism, lawyers and CAs Postal Electronics and IT Transport, shipping and aviation
now time for the 5th and last article under that series: on Railways by the way, Dedicated freight corridor, railway tarrif authority, Train Collision Avoidance systems (TCAS) etc. already covered under earlier article: click ME
British Legacy: Railways

1853Mumbai to Thane (34kms) 1854Calcutta to Raniganj 1856Madras to Arkonam Lord Dalhousie was the g/g during this time. He was succeeded by Lord Canning. India railways is divided into 17 zones (old books would say 16) but in 2010, Metro Railway of Kolkata was declared 17th zone.
Gauges
broad gauge: 1.676 mm (=5 ft 6 inch) meter gauge: 1.000 mm (=~3 ft 3 inch) narrow gauge: 762 mm and 610mm (in some books,610 mm is listed is lift gauge) The British had designed these gauges keeping in mind the volume of goods and traffic Broad Gauge was used for transporting raw material from Indian hinterland to port cities (and then to factories in Britain).
Project UniGauge
to convert selected routes into broad gauge (1.676 mm)
Bigger to smaller
In terms of total track length in India (bigger to smaller): broad > meter > narrow No. of trains (bigger to smaller): diesel > electrical > steam
PSU under Railways ministry
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Dedicated freight corridor Corporation of India Container Corporation of India Limited (Concor) Bharat Wagon Burn Standard company Braithwaite and Company (and some few other PSUs too but theyve railway in their name, hence unworthy of tricky MCQ hahaha)
Konkan Railways
PSU under Railways ministry ~750kms line, Connects Mumbai to Manglore (Maharashtra, Goa and Karnataka States) Broad gauge
Separation of Railway budget

Since 1924 25, railway finances are separated from general finances. (Acworth Committee) Railway budget is presented separately to the Parliament (before the General budget) but Railway has to contribute a dividend to the general revenue. the quantum of contribution (from Railways to general budget) is reviewed by Parliamentary convention committee
UNESCO World heritage: Indian Railways

At present, India has 29 world heritage sites 23 cultural and six natural properties. Lets look @the railway related: 1. Chhatrapati Shivaji Terminus (formerly Victoria Terminus): designed by British architect F. W. Stevens, Gothic style. 2. Darjeeling Himalayan Railway 3. Nilgiri Mountain Railway 4. Kalka Shimla Railway By the way, this year Indian Government has nominated following sites to UNESCO 1. six hill forts in Rajasthan (Chittorgarh, Kumbhalgarh, Ranthambore, Gagron, Amber, and Jaisalmer) 2. Great Himalayan National Park in Himachal Pradesh
Trains: Luxury
Palace on wheels
Delhi, UP, Rajasthan
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Golden chariot Deccan Odyssey
Karnataka, Goa, Tamil Nadu, Kerala and Puducherry
Maharashtra, goa
Royal Rajasthan on Lolz, As the name suggests Rajasthan. Wheels Fairy Queen Maharaja Express
is the worlds oldest steam locomotive in regular operation,Between New Delhi and Alwar (Rajsthan) owned by IRCTC (Indian Railway Catering & Tourism Corporation Ltd), a PSU under Railways.Runs through various routes: places covered are : Delhi, UP, Rajasthan, Mumbai (MH)
Trains: normal
DEMU EMU MEMU Duronto Rajdhani Shatabdi
Diesel multiple unit Electrical Multiple unit Mainline Electric Multiple Unit long distance trains run by the Indian Railways.they run non-stop from source to destination, Connects Delhi with state capitals. Started in 69. Connects Metro cities with other cities.Theyre called Shatabdi because it was first was started in 1988 on Nehrus centenary.
Jan Shatabdi is a more affordable variety of the Shatabdi Express, Express Garib Rath Red Ribbon
Air conditioned trains for poor men Already covered: http://mrunal.org/2013/04/public-healthcurrent-affairs-2012-13-diseases-drugs-and-research-part-2of-3.html/comment-page-1#503 or Jeevan Rekha Expressmobile hospital train run by the Impact India Foundation (UK) provides sophisticated medical services in remote areas of India.
Lifeline Express
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Sampark Kranti Express
quick connectivity from a particular state to the national capital, New Delhi.
Vivek Express
Longest rail journey: Dibrugarh to Kanyakumari (~4,300 kms) Himsagar= 2nd longest (Jammutawi to Kanyakumari=~3700 kms) special trains to cover Sikh pilgrimage centres of Amritsar, Patna and Nanded.
Guru Parikarma
Railway Police
Railway Protection Force is an Armed Force of the Union constituted by the Railway Protection Force Act, 1957. Although Policing on the Railways being the constitutional responsibility of State Governments, Hence State Police have a separate wing called the Government Railway Police (GRP) for the registration of cases, their investigation and maintenance of law and order within Railway premises as well as running trains. 50% of the cost of Government Railway Police is borne by the Railways and the balance is paid by the State Government concerned.
Metro Rail Amendment Act 2009

It provides umbrella statutory safety cover for metro rail work in all the metro cities of India. The Act has been extended to the 1. 2. 3. 4. 5. 6. 7. Delhi National Capital Region Bengaluru Mumbai Chennai Hyderabad Kochi Jaipur metropolitan areas.
The Bangalore Metro Rail Project of ~42 km length is targeted for completion by December 2013.
Kisan Vision Project:

To encourage setting up of cold storage and temperature-controlled perishable cargo centres through PPP mode
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Bullet trains
Railways is doing pre-feasibility studies for running high-speed trains (popularly referred to as bullet trains) at speeds above 350 kmph. Initially, the Mumbai-Ahmedabad corridor has been taken up for which the pre-feasibility study has been completed. A study is also being done on the Delhi-Mumbai route for raising the speed of passenger trains from 160 kmph to 200 kmph, i.e. for running semi-high speed trains These corridors will be set up through PPP route
bio-toilets
Indian Railways along with the Defence Research and Development Organization (DRDO) has developed environment-friendly bio-toilets for its passenger coaches. Indian Railways has targeted elimination of direct discharge passenger coach toilet systems by the end of the Thirteenth Five Year Plan (2021-22).
Rail Budget 2013

Railways budget is always setting up wagon plants/ factories (usually in the Constituency of the ruling partys chiefs) + new trains here and there. Anyways, Not much point in mugging up all that data (especially when few days are left hahaha.) So lets just get an overview of terms important from MCQ point of view. Indian Railways is set to entering the one Billion Tonne Select Club, joining Chinese, Russian and US Railways.
SPART
Self Propelled Accident Relief Trains (SPART) Railways aims to put SPART trains in all divisions by 2017 These SPART trains will have Speed of ~160kmph advanced medical facilities, surgery theatres and drug storage kitchen to cook basic foods for distribution during relief operations. they will help in fast and reliable disaster management after train accidents.
Azadi Express
educational tourist train to enable our youth to travel to important places connected with the freedom movement. tickets will be given @concessional price.
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Next Generation e-ticketing system

The system shall be able to support 7200 tickets per minute It will support 1,20,000 simultaneous users at any point in time The system will make use of advanced fraud control and security management tools
Adarsh Station
Introduced in 2009. Adarsh stations are provided with basic facilities such as drinking water, functioning toilets, catering services, waiting rooms and dormitories especially for lady passengers, and better signage.
Anubhuti coaches
special AC luxury class proposed in this years rail budget, providing higher travel comfort to passengers. ergonomically designed cushioned seats, LCD screens, modular toilets and stylish interiors, Chandigarh Shatabdi will be the first train to have Anubhuti coaches Theyre LHB coaches.
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LHB Coaches
Linke Holfmann Busch (LHB) LHB coaches have higher carrying capacity, better riding comfort, higher-speed potential, longer life, upgraded amenities, control discharge toilet system, lower maintenance requirement, enhanced safety features, and aesthetic interiors A rail coach factory at Palakkad has been sanctioned in PPP mode for production of such coaches
For women
Railways have already created four companies of women RPF personnel and another eight would be set up. 10% vacancies reserved for women in RPF recruitment hostel facilities for single women railway employees at all Divisional headquarters;
IT initiatives
1. Unreserved Ticketing System (UTS), Automatic Ticket Vending Machines (ATVMs), Coin-operated Ticket Vending Machines (CO-TVMs) 2. use of Aadhars/UID for booking of tickets, validation of genuine passengers with GPS enabled handheld gadgets in trains 3. e-ticketing possible through mobile phones 4. SMS Alerts to passengers providing updates on reservation status 5. covering larger number of trains under Real Time Information System (RTIS), whereby rail-users will be able to access information through nominated websites and mobile phones
Customer satisfaction
Toll free number for passengers to lodge food-related complaints contact on-board staff through SMS/phone call/e-mail for prompt response for coach cleanliness free Wi-Fi facility on several trains voluntary organisations for providing first aid services etc. at railway stations
for Handicapped passengers

affixing Braille stickers indicating the layout of coaches including toilets, provision of wheelchairs and battery operated vehicles at more stations making coaches wheel-chair friendly.
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Reservation for PH candidates in Jansadharan Ticket Booking Sevak (JTBS)
Rail Tourism
Mountain Railways of India are the World Heritage Sites it places India in exclusive club of nations that include only Switzerland and Austria. Executive Lounge at New Delhi, setting up of such facility at more stations multi-modal travel package with cooperation of State Government of Jammu & Kashmir enabling passengers to travel from Jammu through Udhampur, Qazigund toSrinagar and Baramulla on a common rail-bus ticket; Amongst the five Sikh Takhts, it is only Takht Shri Damdama Sahib at which is not connected by a rail link, itll be given rail connectivity
Green Energy Initiatives

1. Railway Energy Management Company (REMC) to harness potential of solar and wind energy; 2. setting up of 75 MW windmill plants 3. energizing 1000 level crossings with solar power; 4. new generation energy efficient electric locomotives and electrical multiple units (EMUs) saving about 60 crore units in 2011-12. 5. more usage of agro-based and recycled paper and ban use of plastic in catering.
For its own staff

provide water closets and air condition for loco-pilots Better barracks for RPF
Fiscal discipline, future plans

for the first time in the last 25 years, railways did not present any supplementary demands for grants either in Monsoon Session or Winter Session of Parliament in 2012. Proposal to create new Debt Service fund, to arrange money for replaying loans to JICA and World Bank loans taken for the DFC Project. Operating Ratio is estimated at 88.8%. Railways will complete electrification of 1200 route km. targeted to convert 450 km of MG/NG lines to broad gauge during 2013-14
Transport Overall Challenges

Freight traffic
overall slowdown in the economy ban on iron ore exports from Karnataka reduced imports of fertilizers. =the growth in railways freight traffic has been moderate.
Passenger fares
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Indian passenger ticket prices are 1/4th of China and are 1/9th of Russia, 1/20th of Japans ticket prices. Even in Purchase Price Parity (PPP) terms, the tariffs bear no comparison. In terms of freight rates, however, the Indian freight rates are the highest whereas those of China, Russia and the USA are 58 per cent, 75 per cent and 51 per cent of the Indian rates adjusted for PPP. passenger fares remained unchanged or were even reduced in lower classes. But railway needs truckload of cash for replacement /renewal of assets, operation and maintenance activities, and critical safety and passenger amenity works.
Cross subsidization
Earlier railway used to Cross subsidized passenger fares through freight business. (Cross subsidy means strategy where support for a product (passenger services) comes from the profits generated by another product (freight-goods transport.) But cross-subsidy through the freight business is no longer viable due to fast evolving competition from private cargo operators.
Service tax
Railways no longer enjoys exemption from service tax- Government implemented service tax on railways (first class or an air conditioned coach) from 1st October 2012. Keeping these factors in mind, an increase in passenger fares was announced on 9 January 2013. But thats more like a firefighting solution permanent solution is national tariff authority.
Inclusiveness
transport access is critical for inclusive growth, economic development, access to markets and participation in the political process Every minute a woman dies in child birth, but many of these deaths could be avoided with timely access to transport. Gender responsive infrastructure interventions can free up womens time by lowering their transaction costs. This, in turn, will increase girls school enrollment and facilitate womens participation in income generation and decision making activities.
National integration
A number of airstrips in the NE region are not in use. While there have been efforts to expand the airlines network and the number of flights to the North East Region, its intra-regional connectivity is still low. Railways expansion in the North East and several other parts of the country has been limited in the last six decades. Large areas of Jharkhand, Orissa, Madhya Pradesh, and Rajasthan have no access to rail network
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States of Uttarakhand and Jammu & Kashmir, the network, particularly in the Hilly areas, is nonexistent. These areas require extensive road and rail network for their integration with the markets. Only then their local economy will improve.
Capacity
Of Indias National Highways, less than one-third are two- or four-lane and a very large length of these are not able to support the 10.2 tonne permissible load per axle trucks are allowed to carry Apart from transport, there is severe lack of capacity in the allied activity of warehousing. The cost of rail and coastal shipping in the country is higher than many economies.
Speed
Average speeds of movement of all the modes: Rail, Road, Coastal Ships is lower than those in more efficient economies. The average speed of freight trains is 25 km per hour which is nearly half that of the U.S.
Goods transport by road>railways

India transports more than 50% the total goods by road (instead of railways). This is imposing high cost on the economy by way of much higher dependence on fossil fuels and high level of green house gas emissions. In China only 22% and USA only 37% of goods are transported by road. (=they use railways more0). heavy use of road for goods transport= imposing high cost on the economy, higher dependence on fossil fuels + high level of green house gas emissions
Safety: road + railways

unmanned train crossing are responsible for almost 40% train accident fatalities. Over 1.3 lakh people are known to die annually in road accidents alone. This is about 10 per cent of the world figure, though Indias share in number of vehicles in the world is only 1 per cent. The World Health Organisation has forecasted road traffic injuries to rise and become the fifth leading cause of death by 2030. the recommendations of the Sundar Committee on Roads and the Kakodkar Committee on Railways safety= not yet implemented. To increase safety at level crossing, railways needs ~5000 crores annual, but from Central Road Fund they get only Rs 1,100 crore.
12th FYP: Railways Inclusiveness

Gender equal Railway Transport System to meet the needs of both men and women.
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Priority to womens safety and security. Rail-network to uncovered areas especially in the Himalayan region and some of the tribal areas.
Economy
to enhance rail share in freight traffic by at least 2 per cent Eastern and Western Dedicated Freight Corridors would be completed during the Twelfth Plan period planning for other DFCsNorth-South, East-South, East-West and South-West Investment needs to be prioritised in the important areas, viz. Dedicated Freight Corridors, high capacity rolling stock, last mile rail linkages and port connectivity Enhancing speed of trains Enhancing accommodation in trains
Safety
Train Protection and Warning System (TPWS) Anti Collision Device (ACD) Trains Collision Avoidance System (TCAS), GPS-based Fog Safety Device Biometric Drivers Vigilance Elementary Control System. transfer of technology from USA for track-friendly bogies complete switchover to new manufacture of only LHB design coaches by the end of Twelfth Plan. achieving zero accidents at level crossings, minimum detention to road and punctual train operation. Indian Railways Vision: 2020 envisage elimination of all unmanned level crossings Intelligent fire surveillance and Extinguishing system of locos furnishing materials in the coaches to have superior fire retardant properties Railways have also appointed a High Level Safety Review Committee (Kakodkar Committee) for suggesting measures on Railways safety
Pollution
Grid connected Solar Panels at major stations; Provision of roof top Solar Panels on passenger coaches
high-speed trains
set up a National High Speed Rail Authority (NHSRA), an autonomous body through a Bill in Parliament for implementation of High Speed Rail Corridor projects of Indian Railways.
Rationalize tariffs
The low passenger fares, which have not been revised for several years, have led
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to huge losses in passenger traffic operations. And Rail targets for 12th FYP will require more than 5 lakh crore rupees. Therefore, urgent need to setup Railway tariff authority to rationalize the ticket prices, consistent with the level of feasible cross-subsidies.
Mock Questions
1. A Narrow gauge is a. narrower than only Broad Gauge b. narrower than only Meter Gauge c. narrower than both broad and meter guage d. narrower than neither broad nor meter guage 2. In terms of total railway tracklength, which of the following is highest in India? a. Broad Gauge b. Meter Gauge c. Narrow Gauge d. Lift Gauge 3. Project unigauge aims to convert railways tracks to ____ Gauge a. Broad Gauge b. Meter Gauge c. Narrow Gauge d. Lift Gauge 4. Container Corporation of India, is a PSU under the ministry of a. Railways b. Heavy industries c. Shipping industries d. None of above. 5. Find the odd term among following four a. Darjeeling Himalayan Railway b. Nilgiri Mountain Railway c. Konkan Railway d. Kalka Shimla Railway 6. Bio-toilets for railways, are designed by a. CSIR b. DRDO c. Ministry of drinking Water and Sanitation d. None of Above 7. SPART trains are meant for a. Soldiers returning to home b. victims of train accident c. Pilgrims visiting Maha Kumbh and other religious places d. None of above 8. Correct Statement about Anubhuti coaches a. Theyre designed specially for the SPART trains b. Theyre exempted from Service tax c. Both d. None 9. Biometric VCD are meant for ___ in the train a. Locopilots
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b. Physically challenged travelers c. ticket checker in the train d. Catering staff 10. Correct Statements a. Lord Canning was the governor general of India when first railway started operation from Mumbai to Thane b. Railway budget was separated from General budget on recommendations of Acworth Committee c. both d. none 11. Incorrect match a. Taxes on goods and passengers carried by roads or inland waterways: Concurrent list b. Terminal taxes on goods or passengers carried by railways: Union List c. Both d. None
Article printed from Mrunal: http://mrunal.org URL to article: http://mrunal.org/2013/05/economic-survey-ch10-part-5-of-5railways-anubhuti-spart-project-unigauge-budget-world-heritage.html
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Mrunal [Economic Survey Ch11] Infrastructure (Part 1 of 2): Coal, G... http://mrunal.org/2013/05/economic-survey-ch11-infrastructure-part-1-...
[Economic Survey Ch11] Infrastructure (Part 1 of 2): Coal, Gas, Fuel Sharing Agreement (FSA), gas hydrate, oil shale
1. Prologue 1. Infra 2. India Infrastructure Finance Company Limited (IIFCL) 3. Elasticity of energy use 4. Consumption pattern 2. Energy Pricing 1. Petroleum products pricing 2. Gas pricing 3. Coal Pricing 3. Coal Sector 1. Types of Coal 1. Peat 2. Lignite / Brown coal 3. Bituminous/ Black-Coal 4. Anthracite / hard coal 2. SING-rauli vs reni 3. PSUs under Coal Ministry 4. Fuel Sharing Agreement 1. FSA highlights 2. TCI 3. Charges made by TCI 5. Coal Mining: Open pit vs underground 6. Coal washing 7. 12th FYP: Coal 4. Petro and Natural Gas 1. NELP 2. Refineries in India 3. Alternate Sources of Hydrocarbons 4. Coal bed methane (CBM) 5. Oil Shale 6. Gas Hydrate 7. Shale gas 8. TAPI pipeline 9. The Auto Fuel Policy 10. Rajiv Gandhi Gramin LPG Vitaran Yojna 11. Gas flaring 12. 12th FYP: Oil n Gas 5. Mock Questions
Prologue
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11th chapter is about infrastructure Infra related to Example Road railways Shipping Aviation Postal Telecom IT Coal, gas, petroleum Electricity Renewable energy urban infra (JNNURM) Comment
Transport
Ive already covered this content under Ch.10 (and its 5 sub-articles)
Communication
Energy
Covered here. Although in two parts Part 1 of 2: energy pricing, coal, crude oil Part 2 of 2: electricity and renewable + brief on JNNURM.
Urban infra
Infra
India is the fourth largest consumer of energy in the world after USA, China and Russia but it is not endowed with abundant energy resources 12th FYP Wants 1 trillion dollar investment (~56 lakh crore rupees) in infrastructure. This is nearly double of the investment made during the Eleventh Five Year Plan Infrastructure projects take a long time to plan and implement. Delays in land acquisition, municipal permission, supply of materials, tender process/award of work, operational issues, etc. continued to drag down implementation of these projects. here are some numbers to show the gravity of the situation. Sector Coal Petro Power Railways Roads Total infra projects 51 71 98 127 146 Pending 21 37 45 40 86
Performance / production
Sector Performance compared to previous year
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Coal, cement, petroleum refinery steel and power-sector production Fertilizer, crude oil, and natural gas production Among the infrastructure services, Service Railways (freight) Civil aviation Cargo handling Growth Positive Negative negative
marginally higher lower lower
Performance / production
coal, cement, petroleum refinery was marginally higher than previous year. steel and power-sector production was comparatively lower Fertilizer, crude oil, and natural gas production also declined during the first nine months of this financial year. Among the infrastructure services, growth in freight traffic by railways has been comparatively higher so far, civil aviation sector=negative growth cargo handled at major ports=negative growth
India Infrastructure Finance Company Limited (IIFCL)

was set up in 2006 for providing long-term financing for infrastructure projects that typically involve long gestation periods.
PPP initiatives
Public private partnership helps bringing private-sector efficiencies in creation of economic and social infrastructure assets and delivery of quality public services According to a World Bank Report on Private Participation in Infrastructure (PPI), India has been the top recipient of PPI activity since 2006 By end December 2012 there were 900+ PPP projects in the infrastructure sector with total project cost (TPC) of more than 5 lakh crore rupees. These projects are at different stages of implementation, i.e. bidding, construction, and operational.
Elasticity of energy use

defined as the amount of energy consumed (Kwh) for generating one unit of gross domestic production (GDP) (rupee) Its unit= Kwh per rupee. Another unit = Kilograms of oil equivalent/US$ for India, the Elasticity of energy use =less than 1.
Consumption pattern
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Out of the total consumption from all primary sources of energy Electricity > Coal > crude oil
Energy Pricing
At microeconomic level, when Government provides subsidy on petrol, diesel, LPG=underpricing of energy
Underpricing of energy leads to

1. This reduces consumers incentive for being energy-efficient, 2. Increases fiscal deficit 3. Leakages (e.g. diesel is subsidized for farmers but even drunk rich brats with SUVs also enjoy the benefits.) 4. Inappropriate use e.g. Rickshawllas blending subsidized kerosene with petrol = more pollution. 5. Increased reliance on imports = Trade deficit, CAD, BoP problems. In recent years, Government has taken several initiatives for rationalizing the energy prices in different sectors
Petroleum products pricing

2002 Government dismantled the Administered Pricing Mechanism. however, this decision was not fully implemented. Government announced that the price of petrol was fully deregulated and the oil companies were free to fix it periodically. However, diesel price deregulation was deferred Government restricted the supply of subsidized cooking gas to 6 cylinders per household in a year. Government announced the new roadmap providing for a gradual price increase for diesel. Government will give Direct Benefit Transfer (DBT) for LPG throughout the country using Adhar/UID card. The annual subsidy per consumer is estimated at Rs 4,000. 9 cylinders per year for a consumer. (earlier it was 6)
2010
Sept 2012
January 2013
1 Oct 2013
st
Gas pricing
Pricing of gas is presently done under the New Exploration Licensing Policy (NELP).
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The Government provides the operator freedom to sell the gas produced from the NELP blocks at a market-determined price , subject to the approval of pricing formula. The Government is reviewing pricing under the price sharing contract (PSC) to clarify the extent to which producers will have the freedom to market the gas. For more on this go through Rangarajan Committee article click me
Coal Pricing
Under Integrated Energy Policy Earlier=Before 2012 Now (from 2012) On basis of useful heat value (UHV) on gross calorific value (GCV) basis This even included heat trapped in ash content. No This price-reform is likely to increase the prices of domestic coal to some extent but this is a desirable adjustment because domestic thermal coal, continues to be underpriced. Now lets looks at the topics in segments: 1) coal 2) oil n gas 3) electricity 4) renewable
Coal Sector Types of Coal

In ascending order of their quality (and price) Type Note Highest moisture content = smoke. Most inferior. Important states: TN (Neyveli), Gujarat, Rajasthan Carbon content %
Peat
40
Lignite / Brown coal
40-60
Bituminous/ Black-Coal
Upon heating, it releases a liquid called Bitumin. Used to make coking coal, gas 60-80 coal, steam coal Chattisgarh, Jharkhand, WB, MP, Odisha
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Anthracite / hard coal SING-rauli vs reni

Coalfield Singrauli Singareni State MP AP
Short blue flame Lowest moisture content.
80-90
PSUs under Coal Ministry

Coal India Limited (CIL) Neyveli Lignite Corporation Limited (NLC) Singareni Collieries Company Limited (SSCL)= a joint sector undertaking of Union + Andra state govt. Coal deposits are chiefly located in Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and Maharashtra.
Fuel Sharing Agreement

Why? To ensure fuel security to coal-based thermal power plants When? Aug 2012 How? Indian Government issued a presidential directive to Coal India Ltd, asking them to sign fuel supply agreements (FSAs) with power companies.
FSA highlights
Fuel sharing agreements Signed between coal India ltd (seller) and thermal power companies (buyer/customer) Duration: The FSAs will be signed for a period of 20 years and will be reviewed after every five years. If coal India doesnt provide 80% of the assured supply, then theyve to pay penalty to buyer. If CIL cannot meet demand through domestic supplies, it can meet the shortfall through imported coal. But, if a customer does not accept imported coal, CIL doesnt need to pay any penalties.
TCI
The Childrens Investment Fund Management UK-based hedge fund TCI, the biggest foreign investor in Coal India ltd (CIL) It is a minority stakeholder in Coal India. (although largest investor in Coal India after Government of India)
Charges made by TCI

TCI accuses that Coal India doesnt protect the interest of minority stakeholders,
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they just do things to please their political masters (after all Government of India owns the majority shares). It had initiated legal action against CIL in Kolkata High Court. Politically connected companies are receiving fuel supply agreements (FSAs) at half market price or a third of market price for coal. It is a system that encourages corruption because not everybody can get coal at half price. So obviously there is a massive incentive for companies to pay bribes in order to get FSA contracts. The thermal power companies that get cheap coal from Coal India (under FSA)they dont sell electricity at cheap rates. So the benefits are not trnasfered to the final consumer (aam admi). These thermal companies just extract monopoly and profit margins from the benefit of the cheap coal. In case you wonder why should a UK based investor worry about all this? Ans. Because TCI is a minority shareholder in Coal India. And recall the debt vs. equity article = Since TCI is a shareholder, they will get more money (dividend) only if Coal India makes more profit. But coal India is a mess, just like Air India.
Coal Mining: Open pit vs underground

Open pit mining Underground
Also known as opencast mining, open-cut mining, and strip mining. As the name suggests: underground, via tunnels. to extract rock or minerals from open ground surface. Require complex ventilation systems, structural support, lights, other safety measures = expensive. (and dangerous also for the laborers/miners)
no
Leads to more ecological Less degradation. 85% of Indias coal produced In China, 90% of the coal is digged from from open mines. (imagine underground mines. the damage!)
Coal washing
coal contains lot of dirt and incombustible material. This leads to increased transport cost (due to additional weight of those waste material) + pollution (due to the smoke) In coal washing process, the coal is mixed with a liquid to separate and settle the impurities. The washed coal produces less pollution. Coal washing= example of clean coal technologies.
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12th FYP: Coal

Coal and lignite will continue to dominate the energy scenario Therefore, Energy exploration, clean energy alternatives, energy conservation, and energy sector reforms will be critical for energy security. 11th Five year plan wanted to augment domestic coal production from captive mines. but there were problems like delays in forest and environmental clearances, land acquisition In 12th FYP, Coal India ltd (CIL) will continue to play a major role for coal supply. but CIL production alone will not be enough to meet the rising demand. So need to ensure that additional captive coal blocks start producing in Twelfth plan for larger imports of coal setting up independent coal regulator
clean tech
Increase Underground mining of coal. Encourage Coal washing
Investment
Coal Mines (Nationalization) Act, 1973 does not allow private companies to mine coal for sale to third parties although it allows captive mining for specified end use sectors hence coal sector doesnt attract big investment. There is need for large (foreign) investment and technology in the coal sector. Because a host of small (desi) players would not increase coal production to desired levels.
Petro and Natural Gas

The Ministry of Petroleum and Natural Gas is looks after the matters related to of exploration and production of oil and natural gas import of Liquefied Natural Gas (LNG), petroleum products: refining,marketing,distribution,import,export and conservation. Government of India approved the New Exploration Licensing Policy (NELP) in 1997 and it became effective in February, 1999.
NELP
To attract private investment into oil and natural gas. There have been nine rounds of bidding, starting with a first in 1998 Government has prioritized allocation of gas produced from NELP blocks in the following order:
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1. 2. 3. 4. 5.
Fertiliser plants producing subsidised fertilisers LPG plants Power plants City Gas Distribution (CGD) for CNG and domestic PNG Steel, petrochemicals, refinery, captive power plants and CGD for industrial and commercial customers
Assets abroad
We also have oil n gas assets in Russia (Sakhalin, Magadan), Sudan, Brazil, Syria, Vietnam, Venezuela and Colombia. Production from overseas oil and gas blocks is presently about ~10 per cent of Indias domestic production
Refineries in India
Public sector 17 Three: Private sector Reliance= Two refineries in Jamnagar Essar= one refinery in Vadinar, Gujarat Two Joint venture Bina, MP= BPLC+Oman Bhatinda, Punjab=HPCL+Mittal 22
Total
Reliance is largest refiner at any single location in the world. (capacity=~1.2 million barrels per day (MBPD).
Alternate Sources of Hydrocarbons

Important are four: CBM, Oil Shale, Gas hydrate, Shale gas
Coal bed methane (CBM)

The primary energy source of natural gas is a substance called methane (CH4). Coal bed methane (CBM) is simply methane found in coal seams. CBM is generated either from a biological process as a result of microbial action or from a thermal process as a result of increasing heat with depth of the coal. Potential sites in India: Jharia and Raniganj coalfields
Oil Shale
from sedimentary rocks that contains kerogen (a type of fossil fuel). Pyrolysis : under this process, above rocks are heated at extreme temperature without oxygen. Thus kerogen is released. It is further refined and thus we get shale oil.
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Oil shale can be mined and processed to generate oil similar to oil pumped from conventional oil wells; Challenge: extracting oil from oil shale is more complex than conventional oil recovery, hence more expensive
Gas Hydrate
also known as clathrate hydrates (methane ice, fire ice) it is solid ice-like form of water. it contains (methane, ethane etc.) gas molecules in its cavities they are essentially natural gas in a frozen state. Some estimates suggest that the total amount of natural gas bound in hydrate form may exceed all conventional gas resources coal, oil and natural gas, combined. Challenge: When gas hydrates are brought to the surface the pressure is reduced and the temperature rises. This causes the ice to melt and the methane to escape. Hence drilling, extraction, commercial use = difficult and expensive.
Shale gas
Basics of Shale gas already covered under http://mrunal.org/2012/07
/enb-shalegas.html
India has several shale formations In the sedimentary basins of Cambay, Gondwana, Krishna-Godawari and Cauvery. USA and India have signed MoU for giving training to Indian geo-scientists and engineers for exploring shale gas.
TAPI pipeline
A 1680 km pipeline from Turkmenistan Afghanistan Pakistan India (TAPI) Itll become operational by 2018. It will carry 90 million metric standard cubic meters a day for a 30 year period. India has to pay a transit fee to Pakistan and Afghanistan as the pipeline passes through these nations. More on http://mrunal.org/2012/07/diplo-tapi.html
The Auto Fuel Policy

Approved by the Government, for upgradation of the quality of auto fuels (Petrol and Diesel) to Bharat Stage (BS) IV in 13 identified cities to BS-III in the rest of the country. During 2011-12, BS-IV fuels have been introduced in seven cities, namely, Puducherry (UT), Mathura (UP), Vapi (Guj), Jamnagar (Guj), Ankaleshwar (Guj), Hissar (Haryana) and Bharatpur (Raj) between January to March, 2012. Efforts are being made to progressively expand coverage of BS-IV fuels with introduction of these fuels in 50 more cities by 2015.
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Rajiv Gandhi Gramin LPG Vitaran Yojna

LPG Vision-2015: wants to raise LPG population coverage in rural areas and in the areas where LPG coverage is low. 2009: Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY) for small-size LPG distribution agencies. Under this scheme 75 per cent population is to be covered by 2015 by releasing 5.5 crore new LPG connections.
Gas flaring
When the drilling company burns the natural gas that cannot be processed or sold= this is known as Gas flaring. Gas flaring is also done during emergencies like power failures, equipment failures etc. to prevent any accident. Currently ~3% gas produced by ONGC and OIL is flared. 12th FYP seeks zero flaring of gas and use it for commercial purpose.
12th FYP: Oil n Gas

1. Explore Alternate Sources of Hydrocarbons such as coal bed methane, gas hydrate, shale gas, oil shale 2. National Gas Hydrate Programme 3. 0% Flaring of Natural Gas 4. Phasing out subsidies on domestic LPG and PDS kerosene. 5. Reduce Kerosene supplies because RGGVY and LPG connections are being given in the rural areas. 6. Rationalise tax structure in sales of petroleum products considering its thermal value for its use in transport, industry, power, households and other sectors. 7. Give Declared Goods Status for natural gas/ LNG so that it is available at
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uniform price in most of the States.
Mock Questions
1. Elasticity of energy use means a. Amount of GDP spent for producing one unit of energy. b. Change demand of energy with change in price of energy. c. Amount of energy consumed for generating one unit of GDP. d. Change in the consumption pattern of energy with rise in income. 2. At present, Coal pricing mechanism is based on a. useful heat value b. gross calorific value c. net calorific value d. none of above 3. in terms of quality, which of the following is lowest? a. peat coal b. brown coal c. black coal d. hard coal 4. in terms of price, which of the following is most expensive? a. brown coal b. lignite c. black coal d. hard coal 5. Correct statements about fuel sharing agreements (FSA) a. they are to be signed between ONGC and fertilizer companies. b. Under the agreement, ONGC is liable to pay penalties for shortfall in supply of gas. c. both d. none 6. Correct statements a. Singrauli mines are located in Andhra b. In India, majority of domestic coal supply comes from opencast mines. c. Reliance is the only private sector refinery in India. d. None of above 7. which of the following reduces air pollution? a. Gas flaring b. Coal washing c. Both d. none 8. Oil shale is obtained from a. coal bed methane b. Metamorphic rocks containing clathrate hydrates c. sedimentary rocks containing kerogen d. None of above
URL to article: http://mrunal.org/2013/05/economic-survey-ch11-infrastructurepart-1-of-2-coal-gas-fuel-sharing-agreement-fsa-gas-hydrate-oil-shale.html

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Posted By Mrunal On 12/05/2013 @ 00:18 In the category Economy
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Mrunal [Economic Survey Ch11] Infrastructure (Part 2 of 2) Electrici... http://mrunal.org/2013/05/economic-survey-ch11-infrastructure-part-2-...
[Economic Survey Ch11] Infrastructure (Part 2 of 2) Electricity, Renewable Energy, Bagasse Cogeneration
1. Electricity 1. The Electricity Act,2003 2. Central Electricity Authority (CEA), 3. PSU under Power Ministry 4. Statutory bodies under Power Ministry 5. Ultra Mega Power Project Initiatives 6. National Grid 7. Nuke Sites in India 8. Hydropower 9. North-East: power problems 10. Rural Electrification 11. RGGVY 12. Private sector participation 13. Finance 1. IREDA 2. POWER FINANCE CORPORATION 3. PXI 4. Rural Electrification Corporation 5. National Clean Energy Fund 6. National Electricity Fund th 14. 12 FYP: Electricity 2. Renewable energy 1. Bagasse Cogeneration 2. Jawaharlal Nehru National Solar Mission 3. National Mission on Enhanced Energy Efficiency 4. National Biomass Cookstoves Initiative 5. Solar cities 6. Ladakh Renewable Energy Initiative 7. C-WET 8. Renewable Energy: Challenges 9. Chindus Budget speech 10. Share of renewable energy 3. URBAN INFRASTRUCTURE 1. JNNURM 2. PEARL 3. IRMA 4. CVTC 4. Mock Questions
Electricity
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When 1897 1899 1969
Where? First hydel power station @Darjeeling First thermal power plant @Calcutta First nuke plant, Tarapur, MH
Electricity= is a concurrent subject (List III of the seventh Schedule of the Constitution of India.) 100% FDI permitted in electricity generation, transmission and distribution and trading.
The Electricity Act,2003

Electricity generation has been delicensed. (recall the activities that require industrial license) Although Hydro projects need concurrence from the Central Electricity Authority. No license required for generation and distribution in rural areas. Setting up of the State Electricity Regulatory Commissions (SERCs) made mandatory. An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. Electricity must be supplied via Meters Penalty for power theft = increased Established Central Electricity Authority (CEA) to prepare a National Electricity Plan.
Central Electricity Authority (CEA),

a statutory organization constituted under Electricity Act,2003 (administrative control under Power Ministry) advises the Central Government on matters relating to the National Electricity Policy, aims to provide reliable and affordable electricity to all consumers. makes regulations/standards on matters construction of electrical plans, electric lines and meters connectivity to the grid, concurrence of hydro-electric schemes The CEA is responsible for the concurrence of hydro power development schemes of the Central,State and Private sectors.. Studies for the optimum location of dams and other river works.
PSU under Power Ministry

National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC), North-Eastern Electric Power Corporation Power Grid Corporation of India Limited.(=the formation of the National Power
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Grid. Two joint-venture power corporations, Satluj Jal Vidyut Nigam (Himachal) Tehri Hydro Development Corporation (Uttarakhand)
Statutory bodies under Power Ministry

1. Damodar Valley Corporation 2. Bhakra-Beas Management Board 3. Bureau of Energy Efficiency
Ultra Mega Power Project Initiatives

By Ministry of Power for development of coal-based super critical Ultra Mega Power Projects (UMPP) Each having capacity of ~4000 MW.
UMPP project
1. Sasan 2. Mundra 3. Krishnapatnam 4. Tilaiya
State
Madhya Pradesh Gujarat Andhra Pradesh Jharkhand
12 more supercritical UMPPs are being planned covering Chhattisgarh, Gujarat, Tamil Nadu, Andhra Pradesh, Odisha, Maharashtra and Karnataka. Challenge: some of these projects are plagued with uncertainties regarding fuel supply because they were based on imported coal and changes in government policies in the countries.
National Grid
An integrated power transmission grid helps to even out supply-demand mismatches. Only the southern grid is yet to be connected to the rest of the system(likely to be completed by January 2014.) Once this is achieved, all the five regional grids will operate as a single system in synchronous mode. This will be the largest single such system in the world, both in terms of the grid size and system capacity of around 200000 MW
Trading and Open access in electricity sector
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for allowing a buyer to choose the supplier and a seller to choose the buyer. 2008: Central Electricity Regulatory Commission [CERC] Regulations have provided for Open Access in Inter-State Transmission. via electricity traders and power exchanges It optimizes generation resources by facilitating trade and flow of electricity across the country. The Central Electricity Regulatory Commission CERC has granted 61 inter-state trading licences For more, visit the grid failure article: click me
Nuke Sites in India

Including proposed / under construction Kovvada Kakrapar Mithi-Virdi Gorakhpur Kaiga Chutka Tarapur Jaitapur Rawatbhata Banswada Kudankulam Kalpakkam Narora Haripur Andhra Pradesh Gujarat Gujarat Haryana Karnataka Madhya Pradesh Maharashtra Maharashtra Rajasthan Rajasthan Tamil Nadu Tamil Nadu Uttar Pradesh West Bengal
Hydropower
Indias hydroelectric potential is ~1.45lakh MW. Âs per the study carried by Central Electricity Authority (CEA) A major part of the unexploited potential is in North-East and Himalayan regions. With the deployment of latest technologies we can harness the remaining potential without damaging the ecology. (12th FYP aims to do so).
North-East: power problems

North-East has very large potential for producing hydro power but the pace of implementation has been poor. entire capacity has to be evacuated through a narrow strip of about 25 km in West Bengal. Although no forest clearance is needed, but land acquisition =problem. number of hydro power plants coming up in the region, especially in Arunachal Pradesh, is expected to be spread over the Twelfth and Thirteenth Plans
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but the distribution system is inadequate and consequently leads to large power losses.
Coop with neighbors

Integration of Indian electricity grid with countries such as Bhutan and Nepal = optimization of electricity resources on a large scale and + opportunities to sell and buy electricity. An electric grid interconnection between India and Bangladesh through a Berhampur (India) Bheramara (Bangladesh) is being developed for facilitating exchange of power up to 500 MW between the two countries.
Rural Electrification
Rural electrification is one of the six components of Bharat Nirman
RGGVY
2005: Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) was launched Objectives 1. Create rural electricity infrastructure 2. Provide electricity to all rural households 3. provide free of cost connection to Below poverty line (BPL) households. Finance per project 90% 10% From Subsidy Loan by Rural Electrification Corporation (REC) (under power ministry)
RGGVY: problem/challenge
RGGVY focuses only on house-hold supply and does not address the needs for providing electricity for small industries and agriculture, which need three-phase supply. RGGVY only covers last mile connectivity to households but doesnt strengthening of the rural network (for 3-phase supply). States are often unable to invest in such projects. For effective electricity universal access, the RGGVY programme will restructured in 12th FYP.
Private sector participation

experience of privatisation in Delhi, Kolkata, Mumbai, Ahmedabad, and Surat shows that transmission and distribution losses can be reduced, network efficiency increased, and service levels improved The Franchise model is now being expanded to Nagpur, Aurangabad, Jalgaon in Maharashtra and Agra in Uttar Pradesh.
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Finance
Indian Renewable Energy Development Agency For market development and financing of renewable energy projects Under ministry of new and renewable energy a public sector Non-Banking Financial Company to provide fund and non-fund based support to Indian power sector. Has established Power lenders club: made up of 18 banks + financial institutions like LIC and HUDCO. Under power ministry Power exchange India ltd Company promoted by NSE and others. For rural electrification Rajiv Gandhi Vidhuytikaran Yojana financed via this. Under power ministry for funding research and innovative projects in clean energy technology. Money collected via cess on coal (both domestic and imported.) Matter falls under Ministry of New and Renewable Energy provide interest subsidy to the State Power Utilities both in public and private sector, to improve the electricity distribution network.
IREDA
POWER FINANCE CORPORATION
PXI
Rural Electrification Corporation
National Clean Energy Fund
National Electricity Fund
12th FYP: Electricity

11th FYP initially wanted capacity addition of 78,000 MW and Out of that, ~20% from Hydro
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~75% from thermal And remaining from nuclear energy. But in reality only ~55000 MW has been achieved during the Eleventh Plan. Now 12th FYP wants additional ~88,000 MW.
Renewable energy Bagasse Cogeneration

This is a renewable energy source. Bagasse= fibrous matter that remains after juice is extracted from sugarcane. Cogeneration= process of using a single fuel to produce more than one form of energy in sequence. In Bagasse cogeneration: output = Heat (use by the sugar mill for production) + electricity (sold to consumers). In normal electricity generation plants, up to 70% of heat in steam is rejected to the atmosphere. But In cogeneration plant, this heat is not wasted and is instead used to meet process heating requirement.
Jawaharlal Nehru National Solar Mission

2010: Launched under National plan on climate change Falls under ministry of new and renewable energy To achieve following things by 2022 i. ii. iii. iv. install 20GW solar power 2 GW of off-grid Solar 20 million sq. metre of solar thermal collector area 20 million rural households to have solar lighting
The mission will be implemented in three phases. Phase First Second Third Till March 2013 2017 2022
National Mission on Enhanced Energy Efficiency

2009: launched Under Indias National Action Plan on Climate Change Bureau of Energy Efficiency (BEE) (under Power Ministry) as the Mission implementing agency
Objective/activates
by 2015, help save about 5% of our annual energy consumption, and nearly 100 million tonnes of carbon dioxide every year
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PAT mechanism and ESCert

Perform, Achieve and Trade (PAT) mechanism It would assign energy efficiency improvement targets to the countrys most energy-intensive industrial units If they overachieve targets, theyll be given Energy Savings Certificates, called ESCerts. Other companies can buy those ESCerts to meet their targets.
Finance
Government will give guarantees to banks for loans to energy-efficiency projects. Venture Capital Fund to support investment in the manufacturing of energyefficient products and services.
Misc. initiatives
National Institute of Solar Energy National Bioenergy Corporation of India Renewable Energy Development Fund development in solar energy including solar hybrid areas to implement bioenergy mission including cook stove programme Provide financing for the grid connected as well as the off-grid projects of renewable energy.
National Biomass Cookstoves Initiative

for development for 5500 biomass community cookstoves in Anganwadis, Mid-day meal schemes in schools, Tribal Hostels, etc. and for 15,000.of family sized/portable cookstove has been taken up. This initiative would provide a basis for taking up a large sized cook stove programme. The Worlds largest system for cooking in community kitchen has been installed at Shirdi in Maharashtra to cook food for 20,000 people per day and is saving around 60,000 kg of LPG every year.
Solar cities
By Ministry of New and Renewable Energy Upto Rs. 50 lakhs given per city. to support/encourage Urban Local Bodies
Activities/objectives
1. minimum 10% reduction in projected demand of conventional energy and increasing energy production through renewable energy. 2. promoting solar water heating systems in homes, hotels, hostels, hospitals and industry; deploying Solar Photo Voltaic(SPV) systems/devices in urban areas for demonstration 3. establishing Akshya Urja Shops
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4. promoting urban and industrial waste/ biomass to energy projects 5. all types of renewable energy based projects like solar, wind, biomass, small hydro, waste to energy etc. will be installed Following three are being developed as model solar cities 1. Nagpur 2. Chandigarh 3. Gandhinagar
Ladakh Renewable Energy Initiative

by Ministry of New and Renewable Energy to minimize dependence on diesel in the Ladakh region to meet power requirement through local renewable resources. Via small/micro hydel and solar photovoltaic power projects/systems + use solar thermal systems for water heating/space heating/ cooking requirements.
C-WET
Centre for Wind Energy Technology an autonomous organisation @Chennai, TN under administrative control of this Ministry
Renewable Energy: Challenges

Regional Concentration
Renewable energy sources are location-specific and not evenly distributed Hence problem to connect them to a grid. For example Type Wind energy Small hydro Confined to Tamil Nadu, Maharashtra, Gujarat, Karnataka, Rajasthan, Andhra Pradesh and Madhya Pradesh. Himalayan States and north-eastern State
Expensive
1. Renewable power, especially solar, is significantly costlier than conventional power 2. Renewable energy technologies require large initial capital investments
Low Penetration
Many State governments have not yet made building-regulation codes that encourage use of solar water heaters etc.
Storage
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Globally, development of (electricity) storage technologies has not been in line with the technology developments in wind and solar, This leads to poor capacity utilization
Chindus Budget speech

India tosses out several thousand tonnes of garbage each day. We will evolve a scheme to encourage cities and municipalities to take up wasteto-energy projects in PPP mode. Government will provide low interest funds from National Clean Energy Fund (NCEF) to IREDA Then IREDA will lend it to renewable energy projects. +800 crores to Ministry of Non Renewable Energy for wind energy projects.
Share of renewable energy

Period 2011-12 2016-17* 2020* % Share of renewable energy in total electricity generated 7% 12% 15%
*National Action Plan for Climate Change (NAPCC) wants this. 12th FYP aims to add 30,000 MW renewable power capacity
Sidenotes
Biofuel related matters falls under Ministry of new and renewable energy Tidal energy Potential sites (in descending order of capacity): Gulf of Cambay > Gulf of Kutch >Sundarban region (West Bengal.)
URBAN INFRASTRUCTURE JNNURM

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched by the Ministry of Urban Development for a seven-year period (i.e. from 2005 up to March 2012) to encourage cities to initiate steps for bringing improvements in a phased manner in their civic service levels. This mission has been extended for two years, i.e. from 1 April 2012 to 31 March 2014. Assistance is given for water supply and preservation (including desalination plants), sanitation, sewerage and solid waste management and storm drains development of heritage areas Parking lots on PPP basis
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And urban transport including expressway, highway, Metro, BRTS
Urban Transport
bus rapid transit system (BRTS) were approved for Ahmedabad, Bhopal, Indore, Jaipur, Pune-Pimpri-Chinchwad, Rajkot, Surat, Vijayawada, Vishakhapatnam, and Kolkata under the JNNURM
PEARL
Peer Experience and reflective learning (PEARL) program for knowledge and experience sharing between JNNURM project cities coordinated by National institute of urban affairs
IRMA
IRMA= Institute of Rural Management Anand Although for the purpose of JNNURM, IRMA= independent review and monitoring agency (IRMA) = for monitoring the progress of JNNURM projects in states.
CVTC
City volunteer technical corps Professionally qualified persons in sector of urban planning, urban governance, legal, finance, engineering etc. They help in JNNURM projects by advising, awareness generation, ensuring accountability etc.
Mock Questions
1. Correct Statements a. Electricity is a state subject b. In Electricity generation, FDI limit is 51% c. Both d. None 2. Incorrect Match (UMPP vs State) a. Tilaiya: Jharkhand b. Sasan: Gujarat c. Kirhsnapatnam: Andhra d. None of Above 3. Incorrect statement about Ultra Mega Power project initiative (UMPP) a. It aims to explore and exploit the hydel power potential of North Eastern State b. under Ministry of Power c. Both d. None 4. Correct Match a. Kovvada: TN
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5.
6.
7.
8.
9.
10.
11.
12.
13.
b. Rawatbhata:Maharashtra c. Chutka: MP d. None of above Rajiv Gandhi Grameen Vidyutikaran Yojana a. aims to fullfil one of the objective of Bharat Nirman b. provides free of cost electrical connections to all rural households c. Both d. None What is the purpose of National electricity fund? a. improve electricity distribution network b. fund research in clean energy technologies. c. Both d. None Rural Electrification Corporation is falls under a. Ministry of new and renewable energy b. Ministry of Rural Development c. Ministry of Power d. None of above Correct statements about Cogeneration a. it is a process of using single fuel to produce multiple forms of energy in sequence. b. Bagasse cogeneration is a non-renewable energy source c. Both d. None What is the commercially beneficial output in Bagasse Cogeneration? a. Heat b. Electricity c. both d. None Jawaharlal Nehru National Solar Mission a. is a part of National Mission on Enhanced Energy Efficiency b. implemented by Bureau of energy efficiency c. will be completed in 2020 d. None of above which of the following is/are part of National action plan on climate change? a. National Mission on Enhanced Energy Efficiency b. Jawaharlal Nehru National Solar Mission c. Both d. None What is ESCert? a. E-security certificate issued under IT security act b. E-securities and share certificates issued by certain mutual fund companies c. Energy savings certificates issued under National Mission on Enhanced Energy Efficiency d. None of above Incorrect statements about Solar cities scheme a. Nagpur is being developed as one of the model solar city b. Provides assistance not only for solar projects, but also for biomass, wind energy etc. projects in the selected city.
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c. It is being implemented by Ministry of Environment and Forest d. All of above 14. Correct statement about JNNURM a. Project has expired in 2012 b. It doesnt provide assistance for Development of heritage sites in the given city. c. It provides assistance for urban transport projects except metro projects. d. None of Above 15. Peer Experience and reflective learning (PEARL) program is part of a. National knowledge network b. National Youth Corps c. JNNURM d. None of above
URL to article: http://mrunal.org/2013/05/economic-survey-ch11-infrastructurepart-2-of-2-electricity-renewable-energy-bagasse-cogeneration.html Posted By Mrunal On 12/05/2013 @ 00:21 In the category Economy
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Mrunal [Economic Survey Ch12] Sustainable Development, Climate...
http://mrunal.org/2013/05/economic-survey-ch10-sustainable-develo...
[Economic Survey Ch12] Sustainable Development, Climate Change (Part 1 of 3)

1. 2. 3. 4. 5.
Prologue What is sustainable development? India and GHG India and Sustainable development National Action Plan on Climate Change (NAPCC) 1. Solar 2. Energy 3. Water 4. Agro 5. Green India (forest) 6. Habitat 7. Knowledge 8. Himalayan Ecosystem 9. Hill Areas Hill areas: challenges and solutions Sustainable Agriculture Development Coastal Zone Management Forest and Tree Cover
6. 7. 8. 9.
Prologue
This three article series contains gist of Economic survey ch.12 + 12th FYPs chapter on Sustainable development. (MINUS RIO+20, COP18-Doha and COP11-Hyderabad, because they were already covered and available on Mrunal.org/enb Part 1 of 3 Basics + 8 missions of NAPCC Part 2 of 3 Industries, Housing, transport Part 3 of 3 Financing the climate change and some challanges in clean energy
What is sustainable development?

When a local mafia cultivates sugarcane using bio-fertilizer, bio-insecticides and drip-irrigation, runs his distillery on solar or wind power, uses earthen-pots instead of polythene bags for distributing his final-product, then we can say he is brewing desi liquor in a sustainable manner. Sustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This definition was given by Brundtland Commission in 1987. Official name of Brundtland Commission = World Commission on Environment and Development (WCED)
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Name of their report = Our Common Future
India and GHG

India has signed the United Nations Framework Convention on Climate Change (UNFCC) India has acceded to the Kyoto Protocol in 2002, although as a developing country, India (or China) doesnt have compulsory targets for emission reduction. But still, India has given voluntary commitment that by 2020 well reduce the GHG emission intensity of our GDP by 20-25% of 2005 level. Globally, Indias policy to achieve sustain-able development is guided by the principle of common but differentiated responsibility (CBDR). India is one of the countries that prefer an aspirational rather than a mandatory or prescriptive approach for emission reduction. It is estimated that Indias per capita emission in 2031 will still be lower than the global per capita emission in 2005 2005: global =4.22tonnes of CO2 equivalent 2031: India = under 4 tonnes India is part of 94 Multilaterals Environmental Agreements including Ramsar Convention on Wetlands, Convention on International Trade in Endangered Species of Fauna and Flora (CITES), Convention on Biological Diversity (CBD) Environmental protection is even provided in the Constitution environment protection is enshrined in our Constitution DPSP: Article 48A Fundamental duties: 51A Concurrent list: forest; protection of wild animals and birds.
India and Sustainable development

What?
12th Five Year plan (2012-17) National Environmental Policy (NEP)
Where is Sustainable angle?

Theme: faster, more inclusive and sustainable growth. It says, The development which respects ecological constraints and the imperatives of social justice, is sustainable development. Use of countrys natural resources should be 1. 2. 3. 4. technically sound, economically viable, environmentally non-degrading socially acceptable
National Agricultural Policy (NAP)
National Electricity Policy (NEP)
Underscores the use of renewable sources of energy.
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National Urban Sanitation Policy
eliminate open defecation, promote integrated citywide sanitation, safe disposal and efficient operation of all sanitary installations. generate awareness
^This list is not exhaustive, it has become a fashion to plug sustainable development everywhere so in almost every government policy youll find them talking about sustainable development.
National Action Plan on Climate Change (NAPCC)

2008 PM launched NAPCC. PM requested state govt. to prepare SAPCC. (State Action plan on climate 2009 change).So far, 21 state governments have prepared such plans.
8 Missions under NAPCC

Mission Bottomline?
(Jawaharlal Nehru) National solar mission. To achieve following things by 2022
Solar
i. ii. iii. iv.
install 20GW solar power 2 GW of off-grid Solar 20 million sq. meter of solar thermal collector area 20 million rural households to have solar lighting National Mission on Enhanced Energy Efficiency (NMEEE) by 2015, help save about 5% of our annual energy consumption, and nearly 100 million tonnes of carbon dioxide every year PAT and ESCert (more details in part 3 of 30 National water mission. increase water use efficiency by 20% Focused attention to vulnerable areas including over-exploited areas And other fancy stuff like integrated water Management, awareness generation etc. National mission for sustainable agriculture. enhancing productivity and resilience of agriculture Reduce vulnerability to extremes of weather, long dry spells, flooding.
Energy
Water
Agro
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Green India (forest)
National mission for Green India afforest an additional 10 million hectare of forest lands, wastelands and community lands. National mission on Sustainable Habitat energy-efficient buildings sewage Management National mission on Strategic Knowledge for Climate Change Identify challenges arising from climate change, promote the development Knowledge on Climate Change particularly in the areas of health, demography, migration, and livelihood of coastal communities National mission for sustaining the Himalayan Eco System Reduce climate impacts on the Himalayan glaciers And promote community-based management of these ecosystems
Habitat
Knowledge
Himalayan Ecosystem
Himalayan Eco System

acts as a giant carbon sink. forms a considerably large part of identified Himalayan Biodiversity global hotspot. States covered entirely name 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Jammu & Kashmir Himachal Pradesh Uttarakhand Sikkim Arunachal Pradesh Nagaland Manipur Mizoram Tripura Meghalaya
Entirely (10)
Partially (2)
The hill districts of Assam and West Bengal
Now lets see what 12th FYP has to say
Hill Areas
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Sustainable Management of Himalayan Ecosystem and Western Ghats Continue following programs in 12th FYP Hill Area Development Programme (HADP) Western Ghats Development Programme (WGDP) An Indian Alpine Initiative should also be started for tracking the dynamics of alpine biomes in the context of climate change.
Hill areas: challenges and solutions

most of the hill areas lack infrastructure, particularly roads, power, educational institutions and health care centres. These areas deserve high priority under the flagship programmes, particularly Sarva Shiksha Abhiyan (SSA) and the National Health Mission (NHM). many nation-wide programmes are not suitable for hilly areas, for example, wages should be higher than the wages pre-scribed under MNREGA. Bill to include the Darjeeling Gorkha Hill Council Area in the Sixth Schedule needs to be expeditiously considered.
Sustainable Agriculture Development

Pricing water and electricity appropriately will help recharge the depleting aquifers. Shift urea to a nutrient-based subsidy regime. improve the welfare of farmers and agricultural labour, and help eradicate rural poverty
Coastal Zone Management

Coastal areas are currently classified into four categories (CZ 1 to 4) with different levels of permissions for development activities. Category 1 2 3 4 What? ecologically sensitive areas permit construction activities based on vulnerability islands
Swaminathan Committee (on coastal zone regulation) has recommended that local circumstances and vulnerabilities should be the basis of coastal zone management and regulations.
Forest and Tree Cover

There is already a Green India mission under NAPCC. But The business-as-usual scenario will however, not suffice. The 12th FYP wants green India mission to be re-organized into a more comprehensive National Mission for a Green India. Mission is still being finalized, but the realistic aim would to double the present reforestation and afforestation efforts to about 2 mha of forest and tree cover
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annually. Mock Questions given @end of part 3 of 3.
URL to article: http://mrunal.org/2013/05/economic-survey-ch10-sustainabledevelopment-climate-change-part-1-of-3.html Posted By Mrunal On 16/05/2013 @ 14:39 In the category Economy
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[Economic Survey Ch12] Sustainable Development, Climate Change (Part 2 of 3): SVA-GRIHA, Bachat Lamp Yojana, SEEP
1. Industries 1. Eco-industrial parks (EIP) 2. Steel 3. Cement 4. Thermal Power 5. Vs Solar power? 6. Coal gasification 2. Transport 1. Vehicle Fuel Efficiency Programme 2. Rail freight 3. Water-Borne Freight 4. Public transport 3. Green Building Codes 1. Energy Conservation Building Code 2. ADARSH 3. GRIHA 4. Sva-GRIHA 4. Electrical appliances 1. Bachat Lamp Yojana (BLY) 2. Super-Efficient Equipment Program (SEEP) 3. CFL vs LED
Industries Eco-industrial parks (EIP)

eco-industrial park (EIP) or estate is a community of manufacturing and service businesses Theyre located together on a common property. Goal is to improve the economic performance of the participating companies while minimizing their environmental impacts An EIP also seeks benefits for neighbouring communities to assure the net impact of its development is positive. In particular, we should consider converting our Special Economic Zones (SEZ) and townships along the MumbaiDelhi Industrial Corridor into Eco-industrial hubs.
Steel
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India is the largest producer of DRI steel in the world. Some of the existing process of steel production COREXBOF : The Corex process followed by basic oxygen furnace for conversion of iron into steel. (this is a steel production method). BFBOF: The blast furnace and basic oxygen furnace route (another steel production method). But there is need for shift towards more clean and energy efficient processes for steel production.
Cement
India = 2nd largest cement producer in the world (1st is China). Three main types of cements are produced in India In the descending order of their total production (highest to lowest) 1. Portland Pozzolana Cement (PPC) 2. Ordinary Portland Cement 3. Portland Slag Cement
Blended cement
Another variety of cement. It consumes less energy and is less emissions-intensive than ordinary Portland cement. Market share of blended cement in India is much higher than the US, China and Japan. But there is a problem: Bureau of Indian Standards permit cement companies to mix upto 35 per cent fly ash (for production of blended cement). But most cement plants use fly ash to the extent of 2030 per cent. So there is need to increase percentage of blending material.
Thermal Power
Power sector is the highest contributor to Indias GHG emissions. In the business-as-usual scenario India would rely heavily on coal based thermal plants hence GHG emissions would rise even further. Type of powerplant Sub-critical Efficiency 34% 40% is only marginally more expensive than sub-critical power plants.
Super-critical (SC)
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Ultra Super Critical(USC)
46% first USC plant, is expected to be operational in 2017
Vs Solar power?
Faster adoption of super-critical and ultra-Super critical technology can save as much coal as would be saved by installation of ten times the solar power capacity. Thus, with an USC or SC plant, we can substantially reduce coal consumption + CO2 emission. Therefore 12th FYP puts emphasis on upgrading the Sub-critical coal plants.
Coal gasification
This technology helps in utilization of deep coal deposits, which cannot be mined using conventional means or because they are located in environmentally fragile regions. Coal gasification also allows the possibility of in situ carbon capture. Problem: Indian coal has very high ash content and initial results suggest that efficiency gain over sub-critical units is only marginal. Solution: Government should pump some money in R&D, start a few pilot projects.
Transport Vehicle Fuel Efficiency Programme

BEE has introduced labelling scheme for electrical appliances such as AC and refrigerators. Similarly, vehicles should carry fuel efficiency labels (e.g. in litres/100 km) BEE has already proposed a fuel efficiency scheme for passenger cars, and sought feedback on the scheme at a public consultation held on 1 November 2011. Two wheelers account for about 70 per cent of the vehicle sales as well as vehicle fleet in the country. Therefore, norms must soon be defined for them also.
Rail freight
Transport goods via railways is significantly more energy-efficient than road freight. But India transports more than 50% the total goods by road (instead of railways) = more reliance on petrol and diesel => more GHG emissions + more Current Account deficit. Hence there is need to increase movement of goods through railways.
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Water-Borne Freight
Freight carriage by waterwaysboth inland and coastalis the most energy efficient form of freight transport. (Compared to railways and roads). India has a long coastline and about 15000 km of inland waterways. But still the share of water in freight transport is barely 0.3 per cent. In contrast, in Europe, water transport occupies about 6 per cent of the freight share.
Public transport
Improving Urban Public and Non-Motorized Transport Funding via Jawaharlal Nehru National Urban Renewal Mission (JnNURM)
Green Building Codes

Residential and commercial buildings can be made more energy efficient by using architectural designs that reduce the need for lighting, heating, ventilation and air conditioning.
Energy Conservation Building Code

By Power ministry. Specifies the energy performance requirements of commercial buildings in India. ECBC has been developed by the BEE under the provisions of the Energy Conservation Act, 2001 Applicable to all commercial buildings having a connected electrical load of 100 kW or more (or a contract demand of 120kVA or more). At present voluntary. But expected to become mandatory during the Twelfth Plan. ADaRSH= Association for Development and Research of Sustainable Habitats, is an independent society for scientific and administrative issues related to sustainable habitats in India. ADaRSH promotes GRIHA. Green Rating for Integrated Habitat Assessment . is the national rating system for green building in India. Players: TERI + developed jointly with the Ministry of New and Renewable Energy, Government of India. Small, Versatile, Affordable GRIHA less complicated green rating system for projects less
ADARSH
GRIHA
Sva-GRIHA
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than 2500 sqm. in area. Officially Launched in 2012 By The Energy and Resources Institute (TERI) + Ministry of new and renewable energy ministry First youve to register with ADARSH- then evaluator will come and give rating.
Green habitat: What next (under 12th FYP)?

Green Building Codes across the country Under revamped JNNURM, those these codes will be made one of the important conditions. For urban local bodies, financial devolution should be linked to their implementation of Green Building Codes within their jurisdiction.
Electrical appliances
BEE has tightened the labelling norms for refrigerators and air conditioners w.e.f. 1 January 2012
Bachat Lamp Yojana (BLY)

Bachat Lamp Yojana (BLY), is registered under the Clean Development Mechanism (CDM) of the Kyoto Protocol, part of the United Nations Framework Convention on Climate Change (UNFCCC). This scheme is developed by BEE under the aegis of the Ministry of Power. to promote energy efficient lighting in India. It provides an innovative business model to sell CFLs to households at the same price as incandescent bulbs, the balance being recovered as carbon credits. (under Kyoto protocols CDM: clean development mechanism).
Super-Efficient Equipment Program (SEEP)

By Bureau of Energy Efficiency (BEE) under Power ministry This program would offer manufacturers incentives to produce super-efficient appliances (fans, lights) that are 30-50% more efficient than the most efficient ones available in the market such as the five star labeled appliances.
CFL vs LED
CFL
Compact Fluorescent Lamps (CFLs) contain mercury vapor+ noble gas (argon) electricity causes ionization of gases thus it produces invisible ultraviolet
LED
Light Emitting Diode (LED) Contains semiconductor material. Electricity causes movement of electrons through a semiconductor material.
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(UV) light. The white coating inside the bulb contains phosphorus. This phosphorus absorbs invisible UV light and produces visible (normal) light. (Florescence).
Thus light is produced. (electroluminescence)
They consume less electricity than as incandescent bulbs.
They use only half as much electricity as fluorescent devices (CFLs and tube lights)
Mock Questions @the end of part 3 of 3.
URL to article: http://mrunal.org/2013/05/economic-survey-ch12-sustainabledevelopment-climate-change-part-2-of-3-sva-griha-bachat-lamp-yojana-seep.html Posted By Mrunal On 16/05/2013 @ 14:44 In the category Economy
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[Economic Survey Ch12] Sustainable Development, Climate Change (Part 3 of 3): PAT, RPO, REC, Cap-n-trade
1. Climate financing 1. Taxation 2. Subsidies 3. Funds and Technology Transfers 1. International Funds 2. Desi Funds 4. Market Based 1. PAT 2. RPO 3. REC 5. Cap n Trade vs Carbon Tax 2. Green National Accounts 3. Clean Energy challanges 1. Nuclear 2. Wind Power 3. Solar Power 4. Mock Questions
Climate financing
In all convention/conferences/protocols related to environment, climate change, wildlife protection and biodiversity: there are three gangs with three motives. Gang 1. LDC/vulnerable countries What do they want? We are victims= Give us CA$H.
2. India, China and Developing US,EU should pay them CA$H. countries 3. US, EU and Developed countries. Why should we pay all CA$H? China and India should also do something!
So, What is the Common Factor here? CA$H. Whether you want to promote sustainable development, or you want to reduce green house gases (GHG) emission or you protect biodiversity or you want to win election you need truckload of CA$H. We can classify the cash streams based on who is the prominent player
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Government Taxation Subsidies Funds
Market CDM under Kyoto protocol PAT and ESCert REC and RPO
Taxation
An environment or green tax is imposed on a product that damages the environment, to reduce its production or consumption. This is in line with the polluter pays principle.
Benefits of Environment taxes

1. They internalize environmental costs into prices. Thus, they help signal the structural economic changes needed to move to a more sustainable economy 2. deters actions that lead to environmental damage 3. encourages innovation and development of new technology 4. Government can use the revenue raised by environmental taxes for Development activities and thus reduce the level of other taxes (e.g. income tax or excise duty on medicines.) Lets take look at governments initiatives in this regard. Budget 2010: Government introduced clean energy cess on coal Rs.50 per ton. (applicable to both domestic and imported coal.) The money thus collected is sent to National Clean Energy Fund. SUVs= sport utility vehicles. Mostly run on subsidized diesel, which is originally meant for farmers. Budget 2012: customs duty on imported SUV increased to 100% (means more film stars will try to evade it!) excise duty on SUVs increased to 30%
Coal Cess
Higher excise duty on SUVs
Subsidies
Destructive to environment
When Government provides subsidies on diesel, kerosene, fertilizers: often they pose a threat to the environment. for example 1. Cheap diesel a. Menace of SUVs= air pollution.
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b. Excessive use of diesel pump sets = groundwater depletion. c. Use of tractor as a transport vehicle. 2. Cheap fertilizer = excessive use= soil degradation. 3. Cheap kerosene = mixed with petrol = air pollution. Hence there is need to rationalize subsidies to make sure they dont create havoc on environment.
Funds and Technology Transfers

To reduce GHG emission, weve to replace the obsolete and inefficient systems with more energy-efficient and clean technologies. But the Micro, Small and Medium Enterprises (MSMEs) dont make huge profits so they tend to employ cheap and inefficient technologies= more pollution. Therefore, Government needs to setup separate funds to assist these MSME industries to upgrade to clean technologies + to encourage more R&D in clean energy.
Funds
Only listing the prominent ones
International Funds
Provides funding to reducing global emissions from deforestation and forest degradation in developing countries. REDD= Reduce Emissions from Deforestation and Forest Degradation Under UNFCCC. to transfer money from the developed to the developing world, so they can combat climate change. provides funding to LDCs preparation and implementation of national adaptation programmes of action (NAPAs). Under UNFCC, administered by Global Environment Facility (GEF). financing channeled through the Multilateral Development Banks (MDBs) like ADB, African Development Bank etc. World bank act as trustee
UN-REDD Program
Green Climate Fund
Least Developed Countries Fund
Climate Investment Funds (CIF)
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Desi Funds
Money collected by imposing Cess on coal. Government expects to collect 10,000 crores under this fund by 2015. NCEF will support projects, programmes and policies that promote clean energy technologies. When forest land diverted for non-forestry purposes, the user agencies have to pay money into Compensatory Afforestation Fund. This money is used for Green India Programme (to increase forest cover) + also for wildlife protection. for in situ conservation of genetic diversity of indigenous crop varieties, at Panchayat level.
National clean energy fund (NCEF)
Compensatory Afforestation Fund
National Gene Fund
Market Based PAT

PAT = Perform Achieve and Trade PAT comes under the National Mission for Enhanced Energy Efficiency (and that mission comes under National Action Plan On Climate Change). PAT is a scheme for trading energy-efficiency certificates (ESCerts) in large energy-intensive industries. Basics explained in the article on 11th Chapter click me In the Twelfth Five Year Plan, the PAT scheme is likely to achieve about 15 million tonnes oil equivalent of annual savings in coal, oil, gas, and electricity. Some experts argue that PAT is not very effective because it is one type of cap-n-trade scheme. Instead of that, we just should just put some type of carbon tax on the polluters.
Cap n Trade vs Carbon Tax

lets compare their pros and cons. Cap-and-Trade Carbon tax Here Government allows industries emit xyz tonnes of CO2. But if you emit less than Youve to pay tax directly proportional that amount, you get certificate and you can to your CO emission. 2 sell it to another company that has overshoot its emission quota/cap/limit.
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It uses free market to reduce emission. It does not provide cost certainty (to the company or to the government) because price of those permits/ certificates fluctuate in open market based on many external factors. For example, if company A, has got foreign order to manufacture 1000 cars, it might buy those emission certificates even at a higher price from company B (because company A is desperate to do addition production and emission for supplying the cars.)
It uses taxation to reduce emission.
Certainty to both company and government. (because for X tonnes of CO2 emission, company will have to pay Y rupees as carbon tax.)
Long-term signals from cap-and-trade are less powerful because of above Taxation sends clear signals and cost-uncertainty. for example, Entrepreneurs choice of impetus for behavioral changes. the type of power plant (sub-critical or supercritical). Need to create a market monitoring agency to supervise the trade of those permits/certificates. Can be collected by existing Tax authorities. Carbon tax covers the entire economy, including households and other units impossible to reach in a cap-and-trade mechanism. Because increase in tax affect the price of product, consumer behavior and many units indirectly associated with the sector. (e.g. car mechanic, numberplate painter.)
This leaves out many small, medium or unregistered organizations (who together may release significant portion of the emissions).
Can be more easily manipulated to allow additional emissions. For example, if Less chances of manipulation. Because permits become too pricey, then government government will need parliaments might have to sell or distribute more approval to change taxes. permits to keep the price reasonable. Political pressures and lobbying could lead Political pressures and lobbying could lead to exemptions of sectors and to different allocations of allowances. For firms. Example again if Automobile example if Automobile companies give companies give more election more election donation to ruling party donation to ruling party then then government will increase their government might exempt the whole Quota/cap/limit for CO2 emission. automobile sector from carbon tax.
RPO
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RPO target define how much electricity in the country is estimated to be produced from renewable energy sources (=green electricity) Year 2009 2012 2020 %Green electricity (in total electricity production) 5 7 15
Under RPO mechanism, the DISCOMs, Captive Power Plants, and Open Access Consumers have to purchase certain the minimum level of renewable energy (out of total consumption). State Electricity Regulatory Commission (SERC) look after this matter.
Renewable Energy Certificates (RECs)

They are provided under the RPO mechanism They enable the obligated entities (DISCOMs, Captive Power Plants, and Open Access Consumers) to meet their Renewable Purchase Obligation (RPO). Those obliged entitles can trade surplus or deficit RECs among themselves and the owner of the REC certificate can claim that he has purchased renewable energy.
Green National Accounts

2011: Govt. setup an expert group under Prof. Sir Partha Dasgupta (of Cambridge univ.) to develop framework for Green National Accounts for India We need green national accounts because the contemporary national accounts are unsatisfactory basis for economic evaluation. Because they dont consider the full environmental consequences of economic Development. system of green national accounting would take into account the environmental costs of development reflect the use of precious depletable natural resources in the process of generating national income.
Clean Energies Nuclear

Nuclear power is considered an important source for low carbon power generation. India has ambitious plans in nuclear power through a combination of Light Water Reactors, Heavy Water Reactors Fast Breeder Reactors. However, global concerns regarding safety of nuclear power following the Fukushima nuclear accident in 2011 have slowed down nuclear power capacity addition: both in India and abroad. Need to address public concerns about safety of nuclear power and expedite the
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projects.
Wind Power
Electricity generated by a wind turbine is highly sensitive to wind speeds. Therefore global practice is now to build towers in the range of 80120 m, it significantly increases the power generation potential. Size of wind turbines has increased. Earlier turbines were typically less than 1 MW, the recent designs go up to over 5 MW Taking these into consideration, the wind potential in India is now estimated at about 103000 MW for 80 m hub height. India also has considerable off-shore wind potential, particularly in Tamil Nadu and Andhra Pradesh-which is yet to be exploited. We could safely target a wind capacity addition of 30000 MW by 2020.
Wind power: Challenges

Not uniformly distributed
wind potential is unevenly distributed across the country; only Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra and Gujarat have significant potential. Therefore, if we want to utilize wind potential, we need careful regional level planning and coordination. Hence We need to set up a National Wind Energy Mission, similar to the National Solar Mission for effective formulation and implementation of policies both at the National and State levels
Variation
Wind power has significant seasonal and even intra-day variations. It may lead to a situation, where either the wind generation cannot be utilized, or when the wind suddenly dies down, Thus the loss of electricity generation will impact grid stability and operation. So we need to complete the Wind capacity addition by other energy sources, which have a quick ramp-up time. For example pumped storage hydro, open-cycle gas turbines, compressed air and high power density batteries.
Solar Power
So far not been effective in augmenting rural power generation, because
Lack of huge profit

developers have found it difficult to get reasonable returns on their investments in solar power projects. They are unable to collect adequate revenues to cover operating expenses (despite the initial capital subsidy given by Government.)
Banks not giving loans

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Problem: Local banks are reluctant to provide financing for solar projects. because they fear company will default on the loans. Solution: The government should immediately classify solar power projects as priority lending so that banks start giving it due importance.
Technology
At present there are two main technologies for solar cells crystalline silicon thin-film systems Expensive but dominates the global market If more R&D is done, this can become way cheaper than crystalline silicon.
Rapidly growing telecom sector provides an excellent synergy for augmenting solar power in rural areas. At present there are close to 0.2 million telecom towers and about 40 per cent of these are in the rural areas. Solar power should be used to run them.
Mock Questions
1. Sustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This definition was given by a. UNFCC b. UNESCO c. Brundtland Commission d. None of above 2. What is the theme of 12th FYP? a. Faster, More resilient and inclusive Growth b. Rapid, More sustainable and resilient Growth c. Faster, More Inclusive and Sustainable Growth d. None of above 3. Which of the following is not a direct mission under NAPCC? a. National mission on Sustainable Habitat b. National mission on Strategic Knowledge for Climate Change c. National mission on reduction of Green house gas emission d. National mission for sustaining the Himalayan Eco System 4. What is the purpose of National mission for Green India? a. Incorporate green technologies in Industries. b. Incorporate green technologies in residential and commercial buidlings c. Increase R&D spending for eco-friendly and energy efficient vehicles and electricity appliances. d. None of above. 5. What is Indias voluntery committment for climate change? a. by 2015 India will reduce the GHG emission emission by 20-25% of 1990 level b. by 2020 India will reduce the GHG emission by 20-25% of 2005 level c. by 2020 India will reduce the GHG emission intensity of its GDP by 20-25% of 2005 level
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d. None of Above 6. which of the falling subject is not part of the State list? a. Fisheries b. Prevention of Animal diseases c. protection of wild animals and birds. d. Taxes on animals and boats 7. Correct Statements a. The Biological Diversity Act was enacted under the National Action Plan on Climate Change (NAPCC). b. National Action Plan on Climate Change (NAPCC) contains National mission on Coastal protection, as one of its 8 mission. c. Both d. None 8. Correct Statements a. The prime source of money for Compensatory Afforestation Fund is cess on petrol and diesel. b. National Gene Fund is meant for ex-situ conservation of medicinal plants in botanical gardens. c. both d. none 9. Correct Statement about PAT (perform, Achieve and Trade) scheme a. It provides subsidy to MSME sector for increasing export. b. Is administred by DG export under Commerce Ministry. c. both d. none 10. Partha Dasgupta Committee is associated with a. Western Ghats b. Himalayan Ghats c. Green National Accounts d. None of above 11. Correct Statements a. Blended cement more emissions-intensive than ordinary Portland cement. b. Majority of the coal based power plants in India are based on Ultra super critical technology. c. Both d. None 12. Energy Conservation Building Code a. is designed by Ministry of New and renewable Energy b. is meant for only residential buildings in India c. both A and B d. Neither A or B 13. GRIHA stands for a. Green Rating by Indian housing association b. Green Rating for Integrated Housing Accreditation c. Green Rating for Integrated Habitat Assessment d. None of above 14. SVA-GRIHA rating system is a. designed by CSIR b. for big industrial establishments in SEZ areas.
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c. Both d. None 15. Bachat Lamp Yojana a. is a scheme developed by Ministry of New and Renewable energy b. Provides subsidy for buying solar based LED lamps. c. Both A and B d. Neither A or B 16. Electro-luminescence is responsible for producing light in a. CFL bulbs b. Halogen lamps c. LED lights d. None of above
URL to article: http://mrunal.org/2013/05/economic-survey-ch12-sustainabledevelopment-climate-change-part-3-of-3-pat-rpo-rec-cap-n-trade.html Posted By Mrunal On 16/05/2013 @ 14:59 In the category Economy
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Mrunal [Economic Survey Ch13] Human Development (Part 1 of 4)...
http://mrunal.org/2013/05/economic-survey-ch13-human-development...
[Economic Survey Ch13] Human Development (Part 1 of 4): HDI-2012, HDR-2013, Poverty lines, Aajeevika, Tendulkar, Sreesanth, Saxena, Sengupta
1. Prologue 2. Human Development Index (HDI) 1. HDI=Geometric Mean 2. HDR: last three reports 3. HDI index 2012 4. Tie in HDI? 5. Experimental Indexes 1. #1: Inequality adjusted HDI (IHDI) 2. #2: Gender Inequality Index? 3. #3: Multidimensional Poverty Index (MPI) 3. Poverty 1. Tendulkar vs Saxena? 2. Saxena vs Sengupta? 4. Rural Infra 5. Urban Infra 6. Programs 1. MNREGA 2. Aajeevika 3. Aajeevika: salient features 4. Swarna Jayanti Shahari Rozgar Yojana (SJSRY) 7. Social Security Agreements (SSAs):
Prologue
finally, the last chapter. Contains three sub-parts 1 of 3 Human Development report 2013, poverty definition etc. 2 of 3 SC, ST, OBC and Minorities 3 of 3 Women, children, youth and PH Education related Government schemes already done click me Public Health related Government schemes, already done click me
Human Development Index (HDI)

In 1990, Mahbub ul Haq (Pak), Amartya Sen (India), developed this Human development index (HDI) HDI gives equal weightage to three dimensions
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Dimension
Measured via (till 2010) Changes in 2010 life expectancy @birth Same now it is measured via purchasing-power-adjusted per-capita Gross National Income (GNI) because GNI includes remittances from abroad, hence provides better economic picture of many developing countries like India. via
1.Health
2.income
GDP per capita adjusted for purchasing-power parity (PPP US$).
gross enrollment(1/3rd 3.Education weight) + adult literacy (2/3rd weight)
1. Expected years of schooling for a school-age child in a country entering school today 2. mean years of prior schooling for adults aged 25 and older.
HDI=Geometric Mean
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Earlier HDI was arithmetic mean [(A+B+C)/3], but since 2010, they have shifted to geometric mean=cube root of (A x B x C) why? because in Geometric mean, low achievement in one dimension is not compensated for by high achievement in another dimension. thus Poor performance in any dimension (health, wealth or edu) is now directly reflected in the new HDI.
HDR: last three reports

Human Development Report (HDR) is released by United Nations Development Programme (UNDP) (HQ=New York) year 2010 2011 2013 Tagline The Real Wealth of Nations: Pathways to Human Development Sustainability and Equity: A Better Future for All The Rise of the South*: Human Progress in a Diverse World
*The south here means the leading developing countries, Brazil, China, India, Indonesia, Mexico, South Africa, Turkey etc. By 2020, the combined economic output of three leading developing countries Brazil, China and Indiaalone will surpass the aggregate production of Canada, France, Germany, Italy, the United Kingdom and the United States. The middle class in the South is growing rapidly in size, income and expectations. The sheer number of people in the Souththe billions of consumers and citizens multiplies the global human development consequences of actions by governments, companies and international institutions in the South The 2013 Report identifies four specific areas of focus for sustaining development momentum: 1. 2. 3. 4. enhance equity (+women) enable greater voice and participation of citizens (+youth) confront environmental pressures manage demographic change
HDI index 2012

The HDR report = released in 2013. But the HDI index (and ranking) is given for 2012. If a country has HDI index number close to 1=totally awesome. for example #1 rank given to Norway, it has index 0.955. but if their index number is close to 0=most bogus. for example bottom two Niger and Congo have 0.304 lets check rankings of top3, BRICS, and Indias neighbours. Development Rank Country 1 Norway Very high 2 Australia
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High
Medium
Low
3 55 85 92 101 104 121 136 140 146 149 175 186
USA Russia Brazil Sri Lanka China Maldives S.Africa India Bhutan (tie) Pak and Bangladesh. Myanmar Afghanistan (tie) Niger and Congo
Indias HDI rank in 2011=136 and in 2012=again 136. Thus rank hasnt improved but the HDI index number has improved. Although Index value has improved (from 0.551 to 0.554). by the way, if you want to see the whole ranking of all countries, then simply download this PDF file and goto page 15. click me
Tie in HDI?
for the first time, HDR has introduced the concept of tie. if two countries have same HDI index number upto 3 decimal points, then theyre given same rank. for example, Ireland and Sweden, each with an HDI value of 0.916, are both ranked #7 in the new HDI.But then next rank is skipped that means Switzerland who is next in the line, will get 9th rank and not 8th. Similarly there is tie between: Hongkong + Iceland (for 13th rank) Austria + Singapore (18th rank) Finland + Slovania (21st rank) Lituania + UAE ; Pak+Bangla and so on. total countries evaluated = 187. (although last rank is 186. but there is tie for last place and whenever there is tie, next rank is skipped. Hence total is 187: courtesy Mr.Palas Nuwal.)
Experimental Indexes
2010s HDR report introduced three experimental index viz 1. Inequality adjusted HDI (IHDI) 2. Gender Inequality Index (GII) 3. Multidimensional Poverty Index. (MPI) HDR-2013 also published these indexes.
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#1: Inequality adjusted HDI (IHDI)

The (normal/main) HDI represents a national average of human development in three basic dimensions: health, education and income. but Like all averages, HDI conceals disparities in human development across the population within the same country. Inequality adjusted HDI captures this inequality within the same country. In terms of Inequality adjusted HDI, India ranks 91st while Norway again ranks 1st.
#2: Gender Inequality Index?

Gender Inequality Index (GII) reflects womens disadvantage in three dimensions Dimension Measured via 1. maternal mortality ratio 2. adolescent fertility rate. 1. share of parliamentary seats held by each sex 2. by secondary and higher education attainment levels. Womens participation in the work force.
1.Reproductive Health
2.Empowerment
3.Labour Market
India ranks 132 here. 1st rank goes to Netherlands. The GII ranges from 0 (=men and women treated equally) to 1 (extreme inequality between men and women). India got score of 0.610 (meaning there is lot of inequality between men and women). Netherland scores only 0.045 (=very close to 0)
#3: Multidimensional Poverty Index (MPI)

Identifies multiple deprivations at the individual level in health, education and standard of living. Each person in a given household is classified as poor or non-poor depending on the number of deprivations his or her household experiences. Anyways enough talk about international HDR, lets get back to desi topics.
Poverty
Planning Commission estimates poverty using data from the large sample surveys on household consumer expenditure. These surveys are carried out by the National Sample Survey Office (NSSO)
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every five years. Planning Commission defines poverty line on the basis of monthly per capita consumption expenditure (MPCE). Survey year 2004-05 2009-10 (MPCE) in Rs. Rural Urban 447 579 673 860 % of Poors (Tendulkar Method) Rural Urban Overall 41.8 25.7 37.2 33.8 20.9 29.8
2011: Planning Commissions affidavit in Supreme court Poverty Spending Rs. Line Urban Rural Monthly Daily 965 781 32 26
2012: Planning Commission setup an Expert Group under Dr.C. Rangarajan to Review the Methodology for Measurement of Poverty.
Tendulkar vs Saxena?
Chief setup by Setup in Submitted reported in Suresh Tendulkar (died in 2011) Planning Commission 2005 2009 to review alternate concepts of poverty to recommend changes in the existing procedure used for official estimates of poverty. recommended the Mixed Reference Period (MRP) equivalent Poverty Line Basket (PLB) This new reference PLB has been applied to rural as well as urban population in all the States. to advise the rural ministry on the suitable methodology for BPL Census. and *not* for estimation of poverty. Dr.NC Saxena Rural Development Ministry 2009
Objective?
Recommendation?
automatic exclusion and exclusion of rural households from the BPL list+ grading of remaining households.
Saxena vs Sengupta?
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Chief Dr.NC Saxena Arjun Sengupta Who set it up? MSME ministry National Commission for Enterprises in the Unorganized Sector to examine the problems confronting enterprises in the Unorganized Sector and make appropriate recommendation to provide technical, marketing and credit support to the enterprises.
Why was it setup?
Check the previous table!
Why controversy?*
He says atleast 50% Indian Junta is BPL.
He says 77% of Indian junta is BPL.
*but as per Tendulkars method only ~37% junta is BPL in 2004-05 and this number has further declined to ~30% in 2009!
Rural Infra
Bharat Nirman- most of it already covered in previous articles. hence giving just selective updates/points. MIS software Awaasoft Government increased the money given to rural
Indira Awas Yojana (IAY)
households from 1st April 2013. Plains: Rs.70k Hills/difficult areas/Naxal affected:75k by Rural Development ministry, promises every landless and homeless poor family in rural areas a homestead of not less than 10 cents (0.1 acre or 4,356 sq ft), as per 11th FYP: more than 8 million rural families are homeless. fully covered habitat = those with the provision of at least 40 litres per capita per day (lpcd) of safe drinking water. 12th FYP= the focus is on increasing the service level from 40 lpcd to 55 lpcd + piped water supply schemes and household tap connections. Total Sanitation Campaign (TSC)= now renamed into Nirmal Bharat Abhiyan (NBA).
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(draft) Homestead bill, 2013
Rural drinking water
TSC
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It aims to transform rural India into Nirmal Bharat by achieving 100 per cent access to sanitation for all rural households by 2022. According to Census 2011, only 32.7 per cent of rural households have latrine facilities. (Improving from 32 to 100% is miles to go!)
Urban Infra
JNNURM Already done in earlier article. Rajiv Awas Yojana (RAY) for creating a slum-free India. in-situ rehabilitation of slum dwellers. Integrated Low Cost Sanitation Scheme (ILCS): The ILCS aims at conversion of individual dry latrines into pour flush latrines thereby liberating manual scavengers.
RAY
ILCS
Major Programs
Poverty removal / employment Social security generation Insurance related: example 1. 2. 3. 4. Aam Admi Bima Yojana(AABY) Janshree Bima Yojana (JBY) Universal Health Insurance Scheme (UHIS) Rashtriya Swasthya Bima Yojana (RSBY)
1. MNREGA 2. Aajivika/NRLM 3. Swarna Jayanti Sahari Swarojgar Yojana
Note: above schemes already covered in the article on 5th chapter click me Pension related: NPS lite, NSAP etc: they too were covered in old articles. check www.Mrunal.org/economy
MNREGA
under Ministry of Rural Development at least one hundred days of guaranteed wage employment in a financial year to every rural household (and not to every individual) unskilled manual work (machinery, contractors not allowed) one-third participation of women.
Major recent initiatives under the MGNREGA
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basket of permissible activities has been expanded Electronic fund management system (eFMS) to reduce delay in payment of wages for drought-affected talukas/ blocks: Additional employment over and above 100 days per household. Aadhaar to prevent leakage and ghost accounts. Convergence with the Total Sanitation Campaign (TSC). funding Centre: State=90:10 wage: material ratio=60:40 Social audit, Ombudsman, unemployment allowance
Aajeevika
original name= Swarnjayanti Gram Swarozgar Yojana (SGSY). later name changed to= National Rural Livelihood Mission (NRLM). again name changed to Aajeevika. (Instead of renaming it twice, they could have saved the mental trouble for UPSC aspirants by directly naming it after you know who!)
Aajeevika: salient features

self-employment programme to lift the assisted rural poor families (swarozgaris) above the poverty line gives them income-generating assets through a mix of bank credit and government subsidy. one woman member from each identified rural poor household to be brought under the SHG network, ensuring 50 per cent of the beneficiaries from SC/STs, 15 per cent from minorities, and 3 per cent persons with disability while keeping in view the ultimate target of 100 per cent coverage of BPL families training, innovation, capacity building and other fancy stuff.
Swarna Jayanti Shahari Rozgar Yojana (SJSRY):

to providing gainful employment to the urban unemployed and underemployed helps them set up self-employment ventures or creating wage employment opportunities. Curiously, unlike SGSY this scheme hasnt been renamed.
Social Security Agreements (SSAs):

Basics of social security already covered under http://mrunal.org/2012/07/economysocial-security.htm
SSAs are bilateral instruments to protect Indian professionals working abroad (including self-employed) SSAs facilitate mobility of professionals between two countries. SSAs exempting them from double payment of social security contributions.
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SSA also provides for exportability and totalization in case of contributions made in foreign country. exportability of social security benefits when person relocates to India or any other country after having made the due social security contribution. totalization of the periods of contribution made in both countries for the purpose of assessing eligibility for the benefit/pension in each country. 2006: 1st SSA signed between India and Belgium So far India has signed 17 SSAs with Belgium, Germany, Switzerland, France, Luxembourg, Netherlands, Hungary, Denmark, Czech Republic, Republic of Korea, Norway, Finland, Canada, Sweden, Japan, Austria and recently with Pourtugal. Mock questions after 3rd part is finished.
URL to article: http://mrunal.org/2013/05/economic-survey-ch13-humandevelopment-part-1-of-3-hdi-2012-hdr-2013-poverty-lines-aajeevika-tendulkarsreesanth-saxena-sengupta.html Posted By Mrunal On 21/05/2013 @ 00:25 In the category Economy
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[Economic Survey Ch13] Human Development (Part 2 of 4): SC, ST, OBC, Minorities: welfare schemes, 12th FYP targets
1. Scheduled Castes 1. Scholarships: Higher Education (SC+ST) 2. Protection of Civil Rights 3. Pradhan Mantri Adarsh Gram Yojana (PMAGY) 4. Manual Scavenging 5. 11th FYP: SC welfare 6. 12th FYP: SC welfare goals/targets 2. Scheduled Tribes 1. Constitutional provisions 2. States without ST communities 3. PESA 1996 4. PESA: problems? 5. Forest Rights Act 2006 6. Ashram Schools 7. 12th FYP: ST welfare 8. Funding for ST welfare 3. Other Backward Classes 1. Constitutional provisions 2. OBC reservation in promotion 3. Creamy Layer 4. 12th FYP: OBC welfare 4. Minorities 1. Minorities: Schemes 2. Scholarship: minorities 3. 12th FYP: Minority welfare 5. Bodies: Constitutional vs Statutory 6. Financing/funding/marketing 1. NSDFC 2. NSTFDC 3. NMDFC 4. NSKFDC 5. NHFDC 6. SCDC 7. TRIFED 8. RMK In this part, well see welfare schemes related to SC, ST, OBC and minorities +12th FYP targets. A related topic Socio-Economic Caste census (SECC-2011) was already done in earlier article, click me
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Scheduled Castes
Census year % of SC in total population 2001 16.2 2011 16.9 People belonging to SC communities, by and large, are spread all over the country, with about 80 per cent of them living in the rural areas. Half of the SC population is concentrated in the five States of 1. UP 2. WB 3. TN 4. Andhra 5. Bihar From 2012. To decrease the dropout rate in the transition from elementary to secondary stage. given For class 9 and 10 12th FYP wants this scholarship from class 1 to 8 also. for SC boys and girls in middle school, higher secondary schools, colleges and universities. 12th FYP wants to improve quality of hostels + more residential schools in blocks with high SC concentration
Pre-Matric Scholarship Scheme
Babu Jagjivan Ram Chhatrawas Yojana
Scholarships: Higher Education (SC+ST)

Rajiv Gandhi National Fellowship Scheme
providing financial assistance to SC and ST students pursuing MPhil and PhD courses. 12th FYP wants to increase # of seats. Financial support to SC and ST students pursuing Masters level courses and PhD/Post-Doctoral courses abroad. 12th FYP wants to increase # of seats without any restriction on field of study. covers professional, technical, professional, non-professional, even correspondence /distance education courses. 12th FYP wants Government to provide them
National Overseas Scholarship Scheme
Post metric Scholarship for SC, ST
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laptop/tablet also- for those students who get good marks in class 10/12. eligible students who secure admission in notified institutions like the IITs, IIMs, and NITs, are provided full financial support for meeting the requirements of tuition fees, living expenses, books, and computers for recruitment in UPSC, SSC, Railways, State PSCs, Officers grade exams in RBI PSUs etc. for SC, ST, Minorities 12th FYP wants free coaching for Premier Entrance Exams to professional institutions like IITs, JEE, AIEEE, CPMT, CLAT, CAT etc.
Top Class Education
Free coaching
Protection of Civil Rights

Two acts implemented by Ministry of social Justice and empowerment
#1: protection of Civil Rights act

1955 Extends to whole India Punishment for practice of untouchability
#2: prevention of atrocities act (for SC and ST)

1989 Whole India minus J&K Preventing offenses by persons other er than SC and ST, to ST/ST victims + relief, rehabilitation.
Pradhan Mantri Adarsh Gram Yojana (PMAGY)

launched in March 2010 as a pilot scheme for inte-grated development of 1000 SC majority villages The scheme is presently being implemented in five States viz. Assam (100 villages), Bihar, Himachal Pradesh, Rajasthan and Tamil Nadu (225 villages each).
Manual Scavenging
National Scheme for Liberation and Rehabilitation of Manual Scavengers (NSLRMS) has been in operation since 1992. Towards rehabilitating the manual scavengers and dependents
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The Prohibition of Employment as Manual Scavengers and their Rehabilitation Bill, 2012, has been introduced in the Parliament. Survey of Manual Scavengers in the rural areas is underway as a part of the Socio-economic Caste Census (Rural).
11th FYP: SC welfare

Earlier the 11th Five Year Plan (200712) adopted a three pronged strategy: Strategy 1. Social Empowerment 2. Economic Empowerment How? top priority assigned to education
via promoting employment-cum-income generation activities to eliminate all types of discrimination via legislative support, affirmative action, awareness generation and change in the mind-set of the people.
3. Social Justice
12th FYP: SC welfare goals/targets

1. security and dignity of all SCs especially women 2. Complete end to all forms of untouchability and discrimination against them. 3. To bring SC men and women at par with their non-SC/ST counterparts regarding education, health, nutrition, housing, income generation and employability. 4. empower SCs to participate in society and in nation-building, on an equal basis with others 5. Distribute surplus government land to landless SC agricultural labourers in the rural areas. 6. TRIFED like organization marketing products of SC entrepreneurs/artisans.
Scheduled Tribes Constitutional provisions

Art Sch What? 244/1 5th Scheduled areas Other than AMTM 244/2 6th Scheduled areas in AMTM (Assam, Meghalaya, Tripura, Mizoram) Procedure to be followed for specification of STs. There are over 700 ST notified under this article. There are 75 identified PVTGs (primitive tribal groups) spread across 17 States/UTs.
342
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366
Definition of STs
States without ST communities

Haryana Punjab UT of Delhi, Chandigarh and Pondicherry
PESA 1996
Art What? that nothing in Part IX of the Constitution relating to Panchayat shall apply to Fifth Schedule areas= in the 9 States of Andhra Pradesh, Chhattisgarh, 243M Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa and Rajasthan. Parliament may, by law extend the provisions of this Part to the Scheduled 243(4)B Areas. subsequently done in 1996 Parliament enacted The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (=PESA). PESA has been very poorly implemented across the nine States.
PESA: problems?
Absence of a proper administrative definition of the village that is in consonance with the Act. All States, without exception, have continued with their earlier revenue definitions of the village. Thereby, not only does a village at times consist of 1012 scattered hamlets, but several revenue villages are clubbed together to form a Gram Panchayat. Success of PESA hinges crucially on the effective functioning of the Gram Sabha. Today, even in tribal areas, there is no automaticity to the functioning of the Gram Sabha and there is a large measure of exclusion of women. The LWE districts extend across significant parts of Bihar, Jharkhand, Orissa, Chhattisgarh and Andhra Pradesh, leading to the term, The Red Corridor. While the senior leadership of the party is mostly drawn from non-tribal communities, much of the rank and file comes from local villages and has built on their grievances emanating from the non-implementation of PESA
Forest Rights Act 2006

full name Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. The Act recognises and vests individual forest-dwellers with forest rights to live in and cultivate forest land that was occupied before 13 Dec 2005. Rights such as 1. right to live in forest
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2. right to self-cultivation for livelihood 3. community right to use minor forest produce, grazing, fish and other products of water bodies, 4. Right to in situ rehabilitation including alternative land in cases where they have been illegally evicted or displaced 5. Right to protect, regenerate or conserve or manage any community forest resources (although this sounds more like a duty than right!)
Ashram Schools
Ashram Schools provide education with residential schooling to ST boys and girls. State Governments are eligible for 100 per cent Central Share for construction of Girls Ashram Schools and also for construction of Boys Ashram Schools in naxal areas. For the other Boys Ashram Schools, the funding to State Government is on 50:50 basis. 12th FYP wants 100% central funding for ST hostels in all areas
12th FYP: ST welfare

clear cut personnel policy with regard to posting of officials in tribal areas: fixed tenure and incentives. No post in the implementing agencies in scheduled areas/areas with tribal majority should be left vacant; Better connectivity through railways in naxal affected area and tribal areas. Converge MGNREGA with artisanal work to provide livelihood to tribals, many of whom are engaged in artisanal work. Land and Tenancy Reform: Deal with outstanding matters of tribal ownership. Better and speedy implementation of PESA and FRA Institutional Mechanism of Conflict Resolutions A special problem is that the STs use a language which is typically different from that of the State and this hampers their ability to do well in the educational system. Hence Qualified teachers belonging to the local tribal communities should be trained and placed in position as teachers in Ashram Schools. need to expand schools and hostels for ST boys n girls. Govt. should directly pay college fees of ST students. The fee should be paid promptly during the academic year so as to avoid any harassment to ST students Increase cadre of health workers to better serve tribals traditional healers can be trained and be entrusted with the
Education
Scholarship
Health
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responsibility of treating the people. All tribal habitations should be provided with safe drinking water supply sources and sanitation facilities by the end of the Twelfth Plan period. Frequent immunisation campaigns may be taken up at regular intervals in tribal areas awareness programs for gender bias and wrong customary practices early child-bearing, smoking, drug-addiction, alcohol, unsafe sex etc. prevent the problem of malnutrition, local cereals, along with pulses and oils in adequate quantity should be ensured to the tribal families One of the reasons as to why tribal communities are not economically advanced in spite of their land holdings is that they have no skill in business. Income hence Efforts need to be made to encourage tribal entrepreneurship encourage Export of tribal handicrafts Limit of providing maximum 100 days employment to a household in a given financial year under NREGA should be removed, as in tribal areas work of agriculture labour is available only for a period of 2-3 months during the year. Effective implementation of all legal provisions such as the Juvenile Justice Act (JJ) Act, Bonded Labour Abolition Act and Protection of Women against Domestic Violence Act, SC/ST Prevention of Atrocities Act (POA), Immoral Trafficking Prevention Act (ITPA). A District Level Committee of credible (not jholachhap) NGOs/Advocates and other stakeholders should be constituted to monitor and support these initiatives
Nutrition
MNREGA
Protection
Funding for ST welfare

Schedule Caste Sub Plan (SCSP) Tribal Sub-Plan (TSP) to channelise funds and benefits through identified schemes, for which the States/UTs and Union Ministries have to earmark funds in proportion to the SC population in the State/UTs and the country respectively. For development of tribal areas.TSP has set the twin objectives: (i) socio-economic development of STs; and (ii) protection of tribals against exploitation.
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Special Central extends financial assistance to States/UTs as an additive to Assistance (SCA) to their SCSP and TSP programmes. SCSP and TSP
Other Backward Classes Constitutional provisions

Art What? Constitution empowers the States to make any special provision for the advancement of any socially and educationally backward 15 classes of citizens or for the Scheduled Castes and the Scheduled Tribes empowers the State to make provisions for reservations in appointments in favour of any backward class of citizens which in 16(4) the opinion of the States is not adequately representative in the services under the State. The State shall promote with special care the educational and economic interests of the weaker sections of the people and, in 46 (DPSP) particular, of the Scheduled Castes and Scheduled Tribes and shall protect them from social injustice and all forms of exploitation State to appoint a Commission to investigate into the conditions of 340 socially and educationally backward classes
OBC reservation in promotion

In the existing system, SC, ST, OBC get reservation in recruitment But in case of promotion, only SC and ST get reservation (15% and 7.5% respectively), but OBCs dont get reservation benefits in promotion. Why? Indira Sawhney judgment. Supreme court said Mandal Commissions recommendations are legit but promotion quota for all categories dalits, tribals and OBCs are unconstitutional. So, to protect SC/ST promotion quota, government amended the Constitution to insert Clause (4A). But government had not included OBCs in that amendment. M.Nagraj case, Supreme court says, Constitutional amendment is legit but before framing any law to implement it, the Government will have to satisfy the test of 2006 1. backwardness of particular SC/ST group 2. inadequate representation of that SC/ST group 3. efficiency of administration Supreme court struck down UP Governments rules for seniority because UP state government had not done those tests.
1995
2012
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Therefore, Union Government decided to amend the Constitution (117th Amendment) so that 3-test exercise (desired by SC) becomes unnecessary. 117th Amendment bill was introduced to amend Art 16 (4A): All the SC/ST shall be deemed backward. Passed in Rajya Sabha but lot of uproar.
Creamy Layer
Few days back Government upgraded the non-creamy layer income limit from 4.5 lakh to 6 lakh. Those whore new to competitive exams: please keep in mind following things (because some new players make mistake in application form and then UPSC rejects them after mains/interview stage.) first thing: To claim OBC-reservation benefits you need two certificates OBC caste-list differs from State to State. some castes may be backward in state A but not backward in state B. The backward caste list for State and centre is different. Some castes may be backward for the given state but still not included in central OBC. To claim reservation in UPSC, IIMs etc. all India exams, Your caste must be included in the central OBC list.
1. OBC caste certificate
2. Non-creamy layer this has validity for one year certificate For the purpose of UPSC, Creamy layer candidate has to tick general category in the application form. Hence he gets only 4 attempts and max 30 years age limit like general category candidates. Click on the following screenshot of online application of UPSC.
second thing: OBC non-creamy layer status depends on your parents and *not* your own income/salary.
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The income criteria: 4.5 lakh or 6 lakh or whatever It doesnt apply if your parent(s) are in Government/PSU service. For children of Government employees, usually the situation is your dad is in Government service, and mom is housewife. In that case, if your dad did not become class1 officer before the age of 40, then youre non-creamy layer and eligible for reservation even if his salary is above 4.5 or 6 lakhs due to pay Commission and seniority. for more on creamy layer criteria, study these things 1. PDF file prepared by obcguru click me 2. Tamilnadu Governments instruction to all district collectors click me for any doubts, difficulties, contact the owner of obcguru.com, Mr. SHAILENDRA WAGADRE email id: skwagadre@gmail.com
12th FYP: OBC welfare

Pre-Matric Scholarship and Post-Matric Scholarship are being given to OBCs in 11th FYP but theyre ineligible for National Overseas Scholarship Scheme and Rajiv Gandhi National Fellowship (RGNF). 12th FYP aims to extend those schemes to OBCs as well. TRIFED like organization to provide a marketing platform for OBC artisans and handicraft persons.
Minorities
Five communitiesMuslims, Christians, Sikhs, Buddhists, and Parsis- notified as minority communities. They constitute ~19 per cent of the total population of the country. These communities may actually be a majority in some States for example Community Forms majority in Muslims 1. Lakshadweep (UT) 2. Jammu and Kashmir 1. Nagaland 2. Mizoram 3. Meghalaya 1. Punjab
Christians
Sikhs
Minorities: Schemes
Until the Eleventh Five Year Plan, there were no substantive developmental programmes specifically attending to the minorities. The programs implemented during the Eleventh Five Year Plan, have been in operation for too short a period
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and it is too early to estimate their impact. PMs 15 point program = already covered click me Multi-sectoral Development Programme (MsDP) already covered click me
Scholarship: minorities
Pre-matric Scholarship Scheme Post-matric Scholarship Scheme Merit-cum-Means Based Scholarship Scheme Maulana Azad National Fellowship for Minority Students
Self explanatory.
from Class XI right upto PhD level. for technical and professional courses at the UG and PG level to provide integrated five year fellowships to pursue M. Phil. and Ph. D. in the Universities and institutions recognised by UGC.
12th FYP: Minority welfare

1. literacy rate of religious minorities should be increased as quickly as possible to be at par with the national average. 2. participation of religious minorities in graduate and post graduate studies should be proportionate to their population (2011) 3. IMR, MMR, Institutional Deliveries, Child Immunisation and Vaccination of religious minorities should be brought at par with the national average. 4. Work participation rate of religious minorities in the organised sector should be increased to be at par with other communities. 5. Representation of religious minorities in all forms of Government employment should be increased in proportion to their population 6. Share of total number and total amount of bank loans given to all religious minorities, with special focus on Muslims. 7. 100 per cent financial inclusion for religious minorities 8. More public sector bank branches will be opened in minority concentration districts 9. Special programmes for providing education along with skill and vocational training in the minority concentrated towns will be initiated
Bodies: Constitutional vs Statutory

following list is not exhaustive, we are only looking at bodies dealing with SC, ST, OBC, PH, Women and minorities.
Constitutional
Statutory
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National Commissions for 1. 2. 3. 4. 5. 6. Safai Karmacharis Backward classes Women Minorities protection of child rights human rights
1. National commission for SC 2. National commission for ST
Commissioner/special officer for linguistic minorities.
7. Rehabilitation council of India (for disabled) 8. Chief Commissioner for persons with disabilities. 9. Central Wakf Council
Financing/funding/marketing
national scheduled caste finance and development Corporation under the Ministry of social Justice and empowerment provides loans to SC living below double the poverty line limits, (Rs.40,000 per annum for rural areas and 55,000 per annum for urban areas) loans given for income generating activities national Scheduled Tribes finance and development Corporation provides loans to ST living below double the poverty line limits, under Tribal ministry. national Minorities Development and Finance Corporation provides loans to Minorities living below double the poverty line limits, National Safai Karmacharis financing development Corporation loans to Safai Karmacharis, scavengers and their dependents. For income generating activities no income limit for getting loans. 12th FYP wants NSKFDC should assist at least one lakh beneficiaries.
NSDFC
NSTFDC
NMDFC
NSKFDC
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NHFDC
national handicapped finance and development Corporation for economic Development + education + upgradation of technical skills. State Scheduled Castes Development Corporation (SCDC) equity ratio of 49:51 (49 per cent by MSJE and 51 per cent by the respective State Governments). finance employment-oriented schemes and cover agriculture and allied activities including minor irrigation; small scale industry; transport and trade and services Tribal cooperative marketing development federation of India TRIBES India= its own shops for marketing natural and organic products, handicrafts etc. Rashtriya Mahila Kosh To provide collateral free microcredit to poor women at concessional interest rate for income generating activities
SCDC
TRIFED
RMK
Mock questions after third part. for more on economy, visit Mrunal.org/economy
URL to article: http://mrunal.org/2013/05/economic-survey-ch13-humandevelopment-part-1-of-3-sc-st-obc-minorities-welfare-schemes-12th-fyp-targets.html Posted By Mrunal On 21/05/2013 @ 01:34 In the category Economy
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[Economic Survey Ch13] Human Development (Part 3 of 4): Women and Child Development, Saksham, Priyadarshini, Dhanlaxmi & yes ofcourse SABLA
1. Prologue Interval 1. Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) 2. Rashtriya Bal Swasthya karyakram 3. Saksham 2. Women 1. Schemes: Women n Girls 2. Ahimsa messengers 3. Beijing platform for action 4. CEDAW 5. CSWB 6. Poorna Shakti Kendras 7. Priyadarshini 8. SABLA 9. Saksham 10. STEP 11. Swadhar Greh 12. Ujjawala 13. Schemes: Mother-Child 14. Rashtriya Bal Swasthya karyakram 15. ICDS 16. ICPS 17. Dhanlakshmi 18. Rajiv Gandhi National creche 19. Child-Adoption 3. UN convention on rights of children 4. 12th FYP: Women: Vulnerable groups 1. 12th FYP: reforming Women laws 2. Women In Panchayats 3. Women in Agriculture 4. Women: land ownership th 5. 12 FYP: Women welfare: Ministries and Schemes 1. Gender Budgeting (GB) 2. Engendering Flagship Programmes 3. National Rural Health Mission 4. Education 5. Housing 6. 12th FYP Children 1. 12th FYP: Child Development Targets 2. Reforming laws
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Child Labour vs RTE Problems with existing Child labour act? IMS Act: Bottle feeding Food security Restructuring the ICDS: Improve Sex ratio 7. Awards Women n Children 1. Streee Shakti Puraskars 2. Devi Ahilya Bai Holkar 3. Kanngi 4. Mata Jijabai 5. Rani Gaidenlou Zeliang 6. Rani Laxmibai 7. Rani Rudramma Devi 8. National Child award for exceptional achievement 9. Rajiv Gandhi Manav Seva Award
3. 4. 5. 6. 7. 8.
Prologue Interval
Some corrections in the old articles 1. In the COP18/Durban article: Green Climate Fund was launched at COP16/CMP6 Cancun, Mexico in 2010 (and not in Durban, 2011) 2. In Economic Survey ch4 article: The CPI index was reformed in 2011 (and not in 2012) 3. In Western Ghat/Gadgil article: Highest peak in Eastern ghats is Jindhagada peak Andhra. (old books say Deomali but this Jindhagada is few meters higher than it). Back to the economic survey, I had thought 13th chapter would finish in 3 parts, but damn thing took four parts so here is the revised structure Part 1 of 4 Part 2 of 4 Part 3 of 4 Part 4 of 4 HDR basics, poverty lines SC, ST, OBC, Minorities Women and children PH, elderly, nomadic tribes, drug junkies and beggars.
Under 3rd and 4th party, Ive also compiled the 12th FYP targets/ visions / strategies. Useful as fodder material for mains, but not that relevant for prelims though, so you may ignore such topics for the moment and read that portion later. But First take look at some new schemes launched in 2013 (and but not mentioned in the India 2013 yearbook). by Ministry of Overseas Indian for the Overseas Indian workers having Emigration Check Required (ECR) passports. feature is similar to Swavalamban: you subscribe to NPS-lite then Government will
Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)
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make some contribution in your account. free life insurance as long as you work in ECR country. Implemented via Bank of Baroda and LIC. This is new scheme Launched in 2013. to provide comprehensive healthcare and improve the quality of life of children
Rashtriya Bal Swasthya karyakram
focus on 4D 1. defects at birth (cleft lip, downs syndrome, Talipes etc.) 2. diseases (dental, heart, asthama etc) 3. deficiencies (Vit.A deficiency= Bitot spot) 4. development delays including disability. This is a recent scheme. By ministry of women and child Development Made due to rising demand for gender sensitisation among boys after the Delhi gang-rape incident. Itll give training/moral education to adolescent boys (11-18 age) to respect women. Official name will be Rajiv Gandhi scheme for empowerment of adolescent boys. (Just like SABLAs official name is Rajiv Gandhi Scheme for empowerment of adolescent girls).
Saksham
Women
time line of various acts: Year Act 1956 Immoral Traffic 1961 Dowry Prohibition Equal remuneration Act 1976 1986 1987 1990 1992 Bonded labour (Abolition) Act Indecent Representation Sati National Commission For Women Infant Milk Substitutes, Feeding Bottles, Food
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1997 2000 2005 2005 2006 2009 2010
SC lays down guidelines for preventing sexual harassment. (Visakha vs Rajsthan case) Juvenile Justice Domestic Violence Commission For Protection Of Child Rights Child Marriage Right to education act The Protection of Women Against Sexual Harassment at Work Place Bill Lok Sabha : passed. Rajya Sabha passed it in Feb 2013. Protection of children from sexual offenses.
2012
bill passed in both houses. brief summary given on prsindia.org click me
Policies
1974 2001 2004 2012 national policy for children national policy for women national Charter for children national Youth Policy (in draft stage).
Schemes: Women n Girls

Scheme of Ministry of women and child development These people work for prevention of violence against women, dowry etc. Includes Women Panchayati Raj Members, Youth, NGOs etc. Help victim file FIRs, visit police stations and seek legal aid. outcome of the Fourth World Conference on Women held in Beijing in 95 for accelerating pace of women empowerment. India has adopted this also. Convention on the elimination of discrimination against women by UN India has ratified it. Central social welfare board to implement welfare programs for women and children via NGOs, family counselling, awareness
Ahimsa messengers
Beijing platform for action
CEDAW
CSWB
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generation etc. originally+ setup by resolution of Government , later became a charitable company. falls under Ministry of Women and child Development. Created under National Mission for empowerment of women one stop information centres. help women get benefit from various govt. schemes. Women empowerment and livelihood program in mid-Gangetic plain. (UP and Bihar) Women form self-help groups, NABARD gives loans, and jholachhap NGOs get commission. Yes, any economic chapter is incomplete without dragging Rajiv Gandhi or Sabla in it hehehe. Rajiv Gandhi Scheme for Empowerment of Adolescent Girls To provide nutrition for growing adolescent girls by provision of food grains. All girls will be given a kishori card which will be updated with details of the girls growth and provision of the food grains. SABLA implemented by Ministry of Women and Child Development. (not by HRD ministry or social welfare ministry) SABLA is created by merging earlier two schemes : Nutrition program for adolescent girls + Kishori Shkati Yojana. Target: girls aged 11-18 100 gms of foodgrain per day per girl for 300 days in a year. This is a recent scheme. By ministry of women and child Development Made due to rising demand for gender sensitisation among boys after the Delhi gang-rape incident. Itll give training/moral education to adolescent boys (11-18 age) to respect women. Official name will be Rajiv Gandhi scheme for empowerment of adolescent boys. (Just like SABLAs official name is Rajiv Gandhi Scheme for empowerment of adolescent girls).
Poorna Shakti Kendras
Priyadarshini
SABLA
Saksham
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By the way, rehabilitation of alcoholics and drug addicts, old age people =under Ministry of Social justice and empowerment (and not under Health ministry).
Committees after Delhi rape

Chief Justice JS Verma Justice Usha Mehra Why? to review existing laws and examine levels of punishment in cases of aggravated sexual assault and it has submitted its recommendations. to identify lapses on the part of public authorities and suggest measures to improve the safety and security of women in the capital.
Schemes: Mother-Child
lot of schemes like Indira Gandhi Matritva Sahyog, JSY etc. ignored because they were covered in earlier Covered in public health compilation article click me. This is new scheme Launched in 2013. to provide comprehensive healthcare and improve the quality of life of children
Rashtriya Bal Swasthya karyakram
focus on 4D 5. defects at birth (cleft lip, downs syndrome, Talipes etc.) 6. diseases (dental, heart, asthama etc) 7. deficiencies (Vit.A deficiency= Bitot spot) 8. development delays including disability. integrated Child development service started in 75 beneficiary 1. children below the age of six 2. lactating mothers 3. pregnant mothers
ICDS
provides for nutritional and health status. immunization health checkups preschool and non-formal education has convergence with reproductive and child health (RCH) program under National rural health Mission
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ICPS
integrated child protection scheme for children in difficult circumstances (neglected, abandoned, trafficked etc.) Toll free childline: 1098 conditional cash transfer For girl child, for fulfilling following conditions like birth and registration of birth immunization enrolment and retention in school For this scheme, 12th FYP wants conditional transfer of assets (like home via IAY) instead of cash transfer. scheme provides for day-care facilities to 0-6 year-old children of working mothers by opening crches and development services Requirement: combined monthly income of both the parents should not exceed Rs.12,000 for availing of the facilities.
Dhanlakshmi
Rajiv Gandhi National creche
Child-Adoption
Central adoption resource authority autonomous body under Ministry of women and Child development deals with Hague Convention on inter-country adoption child adoption resource information and guidance system
CARA
CARINGS it is an IT application for greater transparency in adoption

system, under CARA
UN convention on rights of children

1989 UN general assembly adopted this. 1992 India accedes to the convention. India ratifies two optional protocals under the convention viz. 2005 1. Involvement of children in armed conflict 2. sale of children, child prostitution and child pornography
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Similar to Kyoto, here also America has continued its total awesomeness. (They havent ratified UN convention on rights of children). now lets focus on 12th FYP
12th FYP: Women: Vulnerable groups

Women group What does 12th FYP want? PDS shops in SC bastis/areas should be operated by local SC women. Better implementation of the Scheduled Castes and Tribes (Prevention of Atrocities) Act, 1989. Generate awareness among tribal women about policies, programmes, schemes and legislations meant for them. Representation of tribal women on Committees formed for fixation of Minimum Support Prices for Minor Forest Produce (MFP) give collective transportation facilities (not just bicycles) to Muslim girls. give Alternative training Women artisans from religious minorities who desire occupational diversification. early detection of children with different abilities in schools. vocational training and assured employment for them Age criteria in widows pension scheme should be extended to cover more beneficiaries. Index the pension to inflation A separate quota under Indira Awas Yojana and Rajiv Awas Yojana special job cards under MGNREGA Separate entrepreneurship and leadership development schemes for single women legal aid to single women focus on osteoporosis, breast cancer and cervical cancer and Mental health
SC
ST
Minorities
PH
Widows
Single women
Elderly
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cost of medical procedures for single/poor senior citizens will be subsidised. remove income criteria for old age pension to women above 75 years living in rural/urban slums. pension fund will be made for elderly women in the unorganised sector rendered jobless and without any savings when unable to work. facilities for HIV+ve women deserted by their family, have lost their husbands, and are without any social or economic support. Caregivers of People Living with HIV (PLHIV) and AIDS will be trained in all aspects of the disease. portability of entitlements such as ration cards registration-monitering system to protect migrant domestic workers from exploitation. Migrant Resource Centres/Assistance centres provide information counselling for migrants initiate review of the Armed Forces Special Powers Act (AFSPA) using a gender lens- for better living conditions for women living in disturbed areas. special attention in areas like health care measures, schools, free legal aid and so on. Gender sensitisation programs for defense and paramilitary personnel deployed in the disturbed areas. India has ratified following: 1. United Nations Convention on Transnational Organized Crime (UNCTOC) 2. ^+ its Protocol to Prevent, Suppress and Punish Trafficking in Persons especially trafficking in Women and Children. 3. SAARC Convention on Preventing and Combating Trafficking of Women and Children for Prostitution. 12th FYP wants to break the vicious cycle of second generation prostitution and brothel related livelihood. To achieve this, children of sex workers will be mainstreamed with proper education + skill training 4 per cent of prison population is female Problems: overcrowding, prolonged detention of undertrial individuals, poor living conditions, and
HIV positive
Migrant
AFSPA
Prostitution
Women in prison
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allegations of physical, sexual and mental abuse need for a comprehensive revision of the prison laws. A separate column in all Government and non-Government records to include the third gender. Ministry of Social Justice and Empowerment along with the Ministry of Statistics and Programme Implementation will determine the number of transgendered persons in India and their socioeconomic status. then a new law will be created to protect interests of the community +education, housing, access to healthcare, skill development, employment opportunities and financial assistance.
Transgender
12th FYP: reforming Women laws

Act What does 12th FYP Aim? Use Decoy and sting operations to catch the doctors/clinics. ban on sex detection and sex selection advertisements must be strictly enforced. Increase penalties. Strict Registration/Regulation of sonography machines. increase the length of leave women employed in factories, mines, plantations, shops separate protection officers + Family Counselling Centres Training and capacity building of law enforcement agencies and the Judiciary full time Dowry Prohibition Officers to enforce the Act One Stop Crisis Centres for providing shelter, police desk, legal, medical and counseling services and Womens Helpline. The Immoral Trafficking Prevention Act (ITPA), needs to be amended to clearly define trafficking and sexual exploitation,
PC-PNDT Act
Maternity benefit act
PWDVA (domestic violence)
Dowry prohibition
ITPA
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recognizing different aspects of the same.
Women In Panchayats
Village level women committees must be formed including female workers (teachers, Anganwadi, ASHA) + female panchayat members to collectively discuss and formulate work plans increase role of Panchayats in enforcing registration of births, deaths, marriages and migration pre-election preparation of women candidates and voters, give intensive training to elected panchayat women representatives Gender budgeting and gender audit in rural and urban local bodies. citizen report cards with focus on meeting womens needs in urban services such as water and sanitation, widows pensions and so on. Initiatives to reduce alcoholism among poor men.
Women in Agriculture
Kisan Credit Cards should be issued to women farmers increase awareness about the growing feminisation of agriculture Challenge the gender stereotype that farming is solely a male activity. Women must also be included in land and water management, pani panchayats, preservation of soil fertility and nutrition management, sustainable use of soil, water, livestock and fishery resources A quota for women will be incorporated in agro schemes like Rashtriya Krishi Vikas Yojana (RKVY). implement technology to reduce drudgery of rural women. Women in What does 12th FYP aim? propaganda to change attitudes towards gender stereotyping of skills Removal of prejudice against caste-based activities and worker communities. find potential women entrepreneurs and give them assistance Training of women as BPO employees, electronic technicians, electricians, plumbers, sales persons, auto drivers, taxi drivers, masons, etc. under skill development programmes. Skill development would be seen as a vehicle to improve lives and not just livelihoods of women. complaints committee for sexual harassment. addressing issues of leave, wages, work conditions, pension, housing, childcare, health benefits,
Manufacturing sector
Service sector
Unorganized sector
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maternity benefits, safety and occupational health
Women: land ownership

There are three main sources of land for women: Mode 12th FYP
1.direct government transfers 2.purchase or lease from the market
Where new land is being distributed or regularized, individual titles in womens names only rather than joint titles with husbands.
Low interest loans for women to purchase land in groups for group cultivation.
3.Inheritance
increase in legal awareness and legal support for womens inheritance rights. Hindu Succession Amendment Act (HSAA), 2005 brings all agricultural land on par with other property. Meaning womens land inheritance rights are legally equal to mens across states, overriding any inconsistent State laws. 12th FYP wants speedy and intense implementation of this amendment.
Health
A separate target for lowering female IMR will be added under NRHM. impact assessment of Janani Suraksha Yojana, Jansankhya Sthirata Kosh and other activities under the NRHM will also be undertaken Dovetailing of IGMSY (a pilot conditional maternity benefit scheme), National Food Security Bill (NFSB) and related State schemes with NRHM EDUCATION for an effective convergence of programmes relating to pregnant and lactating mothers.
SANITATION
gender impact assessment of the Total Sanitation Campaign to assess whether it has reduced womens workload, provided security, improved hygiene and reproductive health of women, decreased school dropout rates Provide toilets with water in all schools and anganwadi centres active involvement of women in determining the location of sanitation facilities. Difficulties in the usage of toilets will be addressed (eg. need for lighting, inappropriate location, and so on). eco-sanitation, non-flushing, self-composting toilets
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Transport
Gender Audit of transport terminals Personal security risks at parking lots, buses, bus stops, airports, highways Design improvements in bus and trains e.g. lower height of entry steps, length of straps,install handrails, ramps etc. Womens groups to start making charcoal, briquette making, gassifiers and other smaller power production units and energy-based enterprises. Special trainings to women in renewable energy sector, including the repair of solar lanterns, improved cooking stoves, pumpsets. Resettlement schemes must be evaluated by the affected communities, with a gendered assessment of repercussions on livelihoods of the evictees. safe shelter homes, women friendly public toilets, public crche facilities, While National and State level Action Plans on Climate Change are being formulated, the Twelfth Plan will ensure a gender assessment. Recognition will be given to programmes that air messages critical to the empowerment of women.? engendering the different channels of the media including local media like Nukkad Nataks (Street Plays), Community Radio and so on. Medical Insurance policies will be modified to recognise needs of women headed and single women households Policies on Pensions and Post-retirement benefits will be engendered to reflect the needs of single women and women headed households
Energy
Urban planning
Climate Change
Media
Insurance
12th FYP: Women welfare: Ministries and Schemes

Increase funding for following schemes 1. Support to Training and Employment Program (STEP) for skill development and income generation, 2. Priyadarshini for improving sustainable livelihood opportunities 3. Swayamsiddha Phase II for ensure holistic empowerment of women in a
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4. 5. 6. 7.
sustainable manner through SHGs Working Women Hostels Ujjawala, a comprehensive scheme for helping sex workers Swadhar Greh Scheme, for women in distress. New scheme for providing restorative justice to victims of rape through financial assistance as well as support services.
Gender Budgeting Scheme which assesses gender differential impact of the budget will be continued in the Twelfth Plan Period Ministry/Department /org Sci-Tech What?
Apply Sci-tech for weaker sections, women and other disadvantaged sections of society. Department of Biotech participation of employed/unemployed women scientists IT e-literacy for women Labour vocational training to women Skills Development Programmes for women in J&K and Youth Affairs border areas. Increase reservation and leadership ip quality for women in Panchayati Raj PRIs. increasing enrolment in KGBVs HRD Health and Family Welfare Rural Development NCW more girls hostels for secondary schools. Decrease MMR gender disaggregated targets for employment generated under MNREGA. Coordination between the National Commission for women and State Commissions will be strengthened.
Gender Budgeting (GB)

It is a methodology to assist government in integrating gender perspective into the budget. First Gender budget statement appeared in 2005s budget. under 12th FYP following will be done strengthening and empowering the Gender Budget Cells (GBCs) in each ministry Gender Audit as an integral part of Gender Budgeting will be promoted.
Engendering Flagship Programmes

gender analysis of all flagship programmes will be undertaken at the design stage. Ministry of Women and Child Development/The Ministry of Statistics and Programme Implementation will monitor the gender dimensions of the flagship programmes.
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Land acquisition
Any new land arrangements (=compensatory land given to displaced persons) must be in the joint names of the man and the woman or exclusively in the name of the woman. Womens participation in site selection will be ensured PRADHAN MANTRI GRAM SADAK YOJANA convergence between PMGSY and MGNREGA will be strengthened. To help women work on a larger scale, Government will promote more clusters and federations of women SHGs . One day per month will be allocated as sensitisation day. On this day workers will be given wages but instead of working, theyll be given awareness about Protection of Women from Domestic Violence Act, PC-PNDT Act, and Dowry Prohibition Act etc. Womens Groups will be included as implementing agencies of MGNREGS works. setting up crches in collaboration with ICDS Anganwadis wages under MGNREGS will not be calculated on a piece-rate basis because it often works to the detriment of women. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY) regular flow of electricity to homesteads. This will help women in accessing drinking water, studies of children and other household requirements. safety audits in city planning. market spaces for women hawkers, Women water users groups, women councillors, a mohalla committee with women members will be included in decision making. Skill training for women so more women can be employed under JNNURM projects.
PMGSY
NRML/Ajeevika
MNREGA
RGGVY
JNNURM
National Rural Health Mission

Focus will be post-menopausal problems, osteoporosis and breast and cervical cancer Dovetailing of NRHM with IGMSY (conditional cash transfer for maternity benefit) and National Food Security Bill (NFSB) will be undertaken
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Training Anganwadi and ASHA workers on issues relating to nutrition, counselling, child rights and gender discrimination work of ASHAs/AWWs, will be valued and recognised.
Education
Increase # of lady teachers under Sarva Shiksha Abhiyan (SSA), especially in rural schools and remote, inaccessible areas Upgrade Kasturba Gandhi Balika Vidyalayas to secondary school level address sexual stereotyping via Gender sensitive educational system and syllabus. Change the attitudes and perceptions of school teachers.
Housing
IAY Special provisions for housing for vulnerable women, especially single women and female headed households. work sheds for women in Rajiv Awas Yojana settlements. This will promote economic opportunities for women in urban slum areas.
Rajiv Awas Yojana
12th FYP Children

11th FYP: Achievements
National Commission for Protection of Child Rights (NCPCR) was setup independent statutory commission. (act was made in 2005 but actual Commission setup in 2007). Right of Children to Free and Compulsory Education Act, 2009 enacted. Protection of Children from Sexual Offences Act was passed by Parliament in May 2012. highlights available on prsindia click me 1. Indira Gandhi Matritava Sahyog Yojana (IGMSY) 2. Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (SABLA) 3. Integrated Child Protection Scheme (ICPS) 4. Introduction of the joint (mother + child) card by ICDS and NRHM.
Legal front
New schemes
12th FYP: Child Development Targets

Improve the Child Sex Ratio from 914 in 2011 to 950 by 2017 Prevent and Reduce Child Under nutrition (percentage of underweight prevalence in children 03 years) by half (50 per cent)
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Reduce anemia in girls and women by half (50 per cent) Ensure that 80 per cent or more Panchayat, districts and cities progressively become child friendly. A Child Development Index on the lines of Women Development Index. Review and Update the National Policy for Children 1974
Reforming laws
provide uniformity in the definition of children, in all laws. Child sensitive and child friendly Jurisprudence. Develop a comprehensive Childrens Code to harmonise different legal provisions for children. mandatory for all State Governments to setup State Commissions for Protection of Child Rights (SCPCRs)
Child Labour vs RTE

RTE= every child between the ages of 6 and 14 has right to free (and compulsory) elementary education Child Labour (Prohibition and Regulation) Act of 1986 makes a distinction between hazardous and non-hazardous categories of work for children under 14 years.
Problems with existing Child labour act?

children under the age of 14 years are prohibited from employment only in hazardous industry. In other words, Child labour Act permitted children under the age of 14 to work in non-hazardous industries including some agricultural work. Thus, right to education act and Child labour act are conflicting: Children cannot be both working and in school at the same time! + Teens between 14-18 years can be employement in hazardous industry (because act talks about upto 14 age). Therefore 12th FYP wants amendment in the Child labour act to abolish all forms of child labour. following this, in 2012, cabinet gave approval to amend the Child labour act. new Bill seeks to prohibit employment of children below 14 years in all occupations except where the child helps his family after school hours. Children between 14 and 18 have now been termed in the amendment as adolescents and can only be employed in non-hazardous industries.
IMS Act: Bottle feeding

Infant Milk Substitutes, Feeding Bottles And Infant Foods (Regulation Of Production, Supply And Distribution) Act 1992 as per its amendment in 2003, direct advertisement of infant milk substitutes(IMS) and bottle-feeding is prohibited. However, commercial interference with infant and young child feeding practices
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and growth related claims still continue surreptitiously. 12th FYP wants strict enforcement regarding such ads.
Food security
12th FYP wants Government to make sure that draft National Food Security Bill does not dilute earlier provisions for all six services of ICDS, mandated by earlier Supreme Court directives and also provides support for maternity protection.
Restructuring the ICDS:

focus on the critical age grouppregnant and breastfeeding mothers and children under three years Panchayat led models: decentralisation, with flexibility in implementation. Baal Vikas Kendra owned by women revised nutrition and feeding norms: freshly cooked, culturally appropriate meal, (morning) snack and Take Home Rations in harmony with Supreme Court directive. SNEHA SHIVIRS for severely undernourished children Early Childhood Care and Education (ECCE) Joyful early learning approaches will be promoted for children 36 years of age (e.g. Chilli Pilli program of Karnataka government) Ensuring convergence with related sectors such as NRHM, TSC, NRDWP, SSA, MGNREGA
Improve Sex ratio

Dhanalakshmi assets e.g. house under Indira Awas Yojna.
Instead of giving cash, provide conditional ownership of
Enforcement
Child Marriage Prohibition Act, Dowry Prohibition Act (DPA) Protection of Women from Domestic Violence Act. PC-PDNT act Rashtriya Gaurav Gram Sabha Awards planned by the Ministry of Panchayati Raj to award panchayats that improve the child sex ratio and enhance care and protection of the girl child
Award
Misc Child Web Portal

with comprehensive data base on child survival, development, protection etc.
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Baal Panchayats
where childrens voices will be heard in assessing how their panchayat fares Those Panchayats and ULBs who creat child friendly panchayats and urban local bodies, will be given recognition and awards along the line of Nirmal Gram Puruskar.
Awards Women n Children Streee Shakti Puraskars

on International Womens Day 8th of March, the Government of India presents this award to individual women in the field of social development 6 awards given, in the name of following eminent women from Indian history Devi Ahilya Bai Holkar Queen of the Maratha ruled Malwa kingdom, India. Second half of 1700s. Kannagi is the central character of the South Indian epic Silapathikaram (100-300 CE). King of Madurai had got her husband killed for false accusation of theft. She took revenge by burning the Madurai city with a curse. Now Worshipped as Goddess. Shivajis mother. Naga woman leader. Ran movement against Brithshers in Manipur. Nehru called her Rani of Nagas. Lord Dalhousie took away her kingdom under Doctrine of Lapse. Fought and died in the Mutiny of 1857. Queen of Kakatiya dynasty in the Deccan Plateau Second half of 1200s.
Kanngi
Mata Jijabai Rani Gaidenlou Zeliang
Rani Laxmibai
Rani Rudramma Devi
Award children related

National Child award for exceptional achievement given to children aged between 4 to 15 years for outstanding achievement in various fields including academics, arts, culture, sports etc.
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Mock Qs after 4th part.
URL to article: http://mrunal.org/2013/05/economic-survey-ch13-humandevelopment-part-2-of-4-women-and-child-development-saksham-priyadarshinidhanlaxmi-yes-ofcourse-sabla.html Posted By Mrunal On 23/05/2013 @ 18:52 In the category Economy
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Mrunal [Economic Survey Ch13] Human Development (Part 4 of 4):...
[Economic Survey Ch13] Human Development (Part 4 of 4): Physically Disabled, Elderly, Nomadic, Denotified Tribes, Drug junkies and Beggars
1. Persons with Disabilities 1. Persons with Disabilities: Schemes 1. ARUNIM 2. ADIP 3. DDRS 4. DDRC 5. Pvt. Jobs 6. ALIMCO 7. Jaipur Foot th 2. 12 FYP: PH welfare 1. Education 2. Disabled friendly Environment 3. Review existing laws 4. Task for individual ministry 2. (Draft) National Youth Policy 2012 (NYP12): Salient Features 1. New definition of Youth 2. Age groups of Youth 3. Categories of Youth 4. Validity 5. Youth Development Index (YDI) 3. SENIOR CITIZENS 1. Integrated Programme for Older Persons (IPOP) 2. 12th FYP: Senior Citizen 4. Nomadic, Semi-Nomadic And Denotified Tribes (Dnts) 1. DNT: Problems 2. 12th FYP: DNT welfare 5. Drug-junkies 6. Beggars 7. Mock Question
Persons with Disabilities

Persons with disabilities Act 1995 Prevention, protection, promotion, rehab- unemployment allowance, grievances redressal machinery etc. gives 3 per cent reservation in employment.
2005 National policy for persons with disabilities
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2008
India ratified UN convention on Protection & promotion of rights & dignity of persons with disabilities.
Persons with Disabilities: Schemes

ARUNIM (Association for Rehabilitation Under National Trust Initiative of Marketing) a statutory body under the Ministry of Social Justice and Empowerment. for marketing products made by PH+skill development, training etc. Scheme of Assistance to Disabled Persons for Purchase/Fitting of Aids/ Appliances (ADIP) Deendayal Disabled Rehabilitation Scheme (DDRS). for effective implementation of the Persons with Disabilities Act, 1995. projects for providing education, vocational training, & rehabilitation of persons with disabilities. District Disability Rehabilitation Centres (DDRCs) joint venture of the State & Central Government. to facilitate the creation of infrastructure & capacity building at district level for awareness generation, rehabilitation, training & guiding rehabilitation professionals To encourage private sector to employ PH candidates. government providing the employers contribution to the Employees Provident Fund (EPF) & Employees State Insurance (ESI) for three years, for employees with disabilities with a monthly salary up to 25,000. PSU in Kanpur Artificial limbs manufacturing corporation of India has been exporting its products to Afghanistan, Angola, Bangladesh etc.
ARUNIM
ADIP
DDRS
DDRC
Pvt. Jobs
ALIMCO
Eleventh Five Year Plan (200712)

did following initiatives 1. delineating clear cut responsibility between the concerned Ministries/ Departments;
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2. Indian Sign Language Research & Training Centre has been set up in 2011 3. A new Department, namely Department of Disability Affairs has been set up in the Ministry of Social Justice & Empowerment on Twelfth May, 2012 to act as the nodal Department for the overall policy
National Handicapped Finance & Development Corporation (NHFDC)

It provides loans at concessional rate for education, skill development & self-employment ventures Eligibility 40% of more disability annual income should not be more than 5 lakh (urban areas), 3 lakh (rural areas) NHFDC also provided loans to Parents Associations of mentally retarded persons to set up income generating activities.
Jaipur Foot
Bhagwan Mahaveer Viklang Sahayata Samiti, Limb Centre, S.M.S. Hospital/Medical College, Jaipur. was set up by Mr. D.R. Mehta in, 1975 The Society (Jaipur Foot/Limb & Calipers) supplements efforts in making disabled persons functional by providing artificial limbs, calipers, other aids & appliances, economic assistance free of charge. The Jaipur Limb is so efficient that after this limb is fitted, a person can walk like a normal person without a stick or support, & even run, ride a bicycle & climb a tree. Jaipur Foot has also been fitted to landmine victims & others in foreign countries like Afghanistan, Bangladesh, Indonesia etc.
12th FYP: PH welfare

Two-pronged strategy
1. service delivery 2. generate public awareness about disability rights.
Three key aspects

the extent to PH are enhanced via National & International Conventions & Programmes Empower Via legal rights Acknowledging that Persons with Disabilities have un-evolved Protect capacities as a consequence of their disabilities & thereby have rights to protection. Recognize
focus-areas
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1. make a large number of products, public services & information services accessible to PwDs 2. improving participation & completion rates of students with disabilities at various stages of education (elementary, secondary & tertiary) 3. reduce disproportionate incidence of poverty among the persons with disabilities 4. increase nutrition, health & housing 5. public awareness about disability rights 6. modernise & expand production units of ALIMCO to enhance the quantum of production to match/meet the dem& for improved products.
Education
Scholarships
In 2nd part, we had seen various scholarships availble to SC, ST. 12th FYP wants them to be extended to PH also 1. 2. 3. 4. 5. Pre-Matric and Post-Matric Scholarships free coaching for competitive exams Scholarships for Top Class education Rajiv Gandhi National Fellowship for persons with disabilities; National Overseas Scholarship for persons with disabilities;
Edu-Infra
1. Special/ Residential school for students with severe & multiple disabilities, 2. college for deaf in each of the five regions of the country 3. establishment of National Accessible Library.
Disabled friendly Environment

disable friendly space/ facilities in all modes of transport viz. rail, buses & airplanes & so on During Twelfth Plan barrier free environment in important Government buildings make government websites accessible to persons with disabilities.
Review existing laws

Persons with Disabilities (Equal Opportunities Protection of Rights & Full Participation) Act Rehabilitation Council of India Act National Trust for the Welfare of Persons with Autism, Cerebral Palsy Mental Retardation & Multiple Disabilities Act Mental Health Act 1995 1992 1999 1987
12th FYP wants government to be reviewed them to harmonise these acts with the provision of United Nations Conference on Rehabilitation of Persons with Disabilities (UNCRPD). Same for other acts like Right to Free education, CrPC, MNREGA etc.
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Task for individual ministry

Ministry of Communication & IT What? electronic services & emergency services should be made accessible & disabled friendly lay down standards for safe & non-discriminatory air travel of persons with disabilities as per provisions of the UNCRPD Adapt toilets in vessels, aircrafts & waiting rooms in such a way as to permit the wheel chair users to use them conveniently. Infra: accessible hospitals & health centres, community care centres Personnel: trained & sensitised reasonable health insurance Rehabilitation Centres for treating mentally ill persons Model multi-disability independent living centres setting up of State Spinal Injury Centres; socialisation of children with disabilities through education schools including all Kendriya Vidyalayas & Navodaya Vidyalayas should ensure barrier free environment. Employable Skills of people with disabilities under the Skill Development Initiative Scheme establish an Accessible National Portal allowing people with disabilities to register & search for jobs. multi-level & multi-platform railway stations & one coach in every class of mail & express trains should be made PH-accessible. prepare rail compartments, toilets in rail compartments & waiting rooms in such a way as to permit the wheel users to use them conveniently. attention to PH under various schemes like MNREGA, Ajeevika, Natial social assistance program, Indira Awas etc. to priorities the most vulnerable among PH: particularly SC, ST women, Muslim women, single women, differently-abled, & HIV-positive women etc.
Civil Aviation
Health & family welfare
HRD
Labour & Employment
Railways
Rural Development Women n Child development
Youth: Skill Development
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YES project
Youth Employability Skills (YES) project focus on providing specific employable skills to unemployed youth in all the States in the North Eastern Region. By Ministry of Youth Affairs and Sports. The skill training would be provided by the National Skill Development Corporation (NSDC) National Skill Development Corporation a non-profit company under the Companies Act For skilling 500 million persons by the year 2022.
NSDC
(Draft) National Youth Policy 2012 (NYP12): Salient Features New definition of Youth
Definition India (earlier) India (under NYP12) United Nations Age-bracket 13-35 16-30 15-24
Age groups of Youth

NYP 2012 divides 16-30 years into three groups Age group 16-20 20-25 25-30 Attention Education Employable skills self-employment and entrepreneurial skills
Categories of Youth
Target groups
1. 2. 3. 4. 5. 6. 7. 8. 9. Student Youth Migrant Youth Rural Youth Tribal Youth Youth At Risk Youth in violent conflicts out of school/dropouts groups with social /moral stigma (transgender, HIV+ve) Youth in Institutional Care
Priority groups
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1. Women 2. PH 3. socially and economically disadvantaged communities Both target groups and the priority groups will be given skill training with the help of Prime Ministers National Council on Skill Development National Skill Development Corporation (NSDC),
Validity
Will be reviewed after every National Census. This policy will remain effective till 2022 Will be implemented by Ministry of Youth Affairs and Sports
Youth Development Index (YDI)

Will be created under NYP 2012 Wiil contain five monitorable indicators 1. 2. 3. 4. 5. Youth Health Index Youth Education Index Youth Work Index Youth Amenities Index Youth Participation Index
SENIOR CITIZENS
1992 Integrated Programme for Older Persons (IPOP) Maintenance and Welfare of Parents and Senior Citizens Act. This Is already 2007 covered in old article click me
Integrated Programme for Older Persons (IPOP)

Scheme financial assistance up to 90 per cent of the project cost is provided to non-Governmental Organisations (NGOs) for running and maintenance of Old Age Homes, Day Care Centres and Mobile Medicare Units.
12th FYP: Senior Citizen

consolidate, expand and strengthen various programmes. More day care/enrichment centres for the elders under the scheme of Integrated Programme for Older Persons (IPOP) at least one Regional Resource and Training Centres (RRTCs) in every Personnel State to provide training to caregivers for elderly. IPOP States Effectively implement Maintenance and Welfare of Parents and Senior Citizens Act, 2007.
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Tribunals will be set up so that elderly parents, unable to maintain themselves, are not abandoned and neglected. set up homes with assisted living facilities for abandoned senior citizens in every district District level help lines Bureau for Socio-Economic Empowerment of Senior Citizens at district level 12th FYP wants new policy for elderly and focus on following 1. set up a National Commission for Senior Citizens to look into their grievances on priority for redressal and ensure that services and facilities meant for them are being provided 2. create of National Trust for the Aged 3. Smart Identity Cards for senior citizens; 4. health insurance for senior citizens 5. Mainstream all the senior citizens, especially the older women 6. Promote the concept of Ageing in Place or ageing in own home. Institutional care should be the last resort 7. housing, income-security, homecare services, old age pension, access to healthcare, insurance schemes for dignity in old age. 8. India is a signatory to the Madrid Plan of Action and Barrier Free Framework, the Policy will aim to work towards an inclusive, barrier-free and age-friendly society. 9. Long term savings instruments and credit activities in both rural and urban areas. 10. Employment in income generating activities after superannuation 11. counselling, career guidance, training services, awareness generation, sensitization and other fancy stuff.
Nomadic, Semi-Nomadic And Denotified Tribes (Dnts)

Back in 1871 the Britishers made a notorious law called Criminal Tribes Act (CTA). Under this act, ~200 tribes classified in six categories. 1. petty traders moving from village to village selling salt, forest produce etc. 2. musicians, dancers, singers, storytellers, acrobats, gymnasts, puppeteers and tightrope walkers 3. fortune telling, traditional faith healing services 4. entertainers with the help of performing animals 5. pastoral groups, hunters, gatherers, shifting cultivator 6. artisans working with bamboo, iron, clay and so on After freedom, Indian government annulled this CTA Act of 1871 and thereafter those tribes have been referred to as the Denotified, Nomadic and Semi-Nomadic Tribes (DNTs, SNTs and NTs).
DNT: Problems
There is no authentic data on DNTs and no Census enumeration was conducted
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for them, though they are found in almost all the States and belong mostly to the OBC category in some large States. Some communities are not covered by any of the three SC, ST and OBC categories. They keep moving from one place to another, dont have permanent homes due to various social, political and cultural reasons hence theyre unable to get benefits of the various schemes named after you know who!
12th FYP: DNT welfare

Housing
conduct nation-wide survey of DNT settlements. Provide permanent habitations/villages for them: with basic amenities such as roads, schools, electricity, drinking water, community centers. earmark a proportion of the funding for Indira Awaas Yojana (IAY) for DNTs.
schemes
DNTs should be covered under existing facilities for ST, SC and OBC categories as applicable: scholarships and hostel facilities etc. skill development and marketing, loans for economic empowerment
Laws
12th FYP wants government to review following Acts to ensure the dignity and the livelihood of DNTs Habitual Offenders Act The Prevention of Begging Act The Bombay Prevention of Begging Act Prevention of Cruelty to Animals Act Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act 1952 1959 1959 1986 1989
Drug-junkies and alcoholics

Rehabilitation
Ministry of Social Justice & Empowerment provides support to Rehabilitation Centre run by NGOs ^For de-addition/rehab therapy of drug junkies. India is signatory to three United Nations Conventions, namely: 1. Convention on Narcotic Drugs, 1961 2. Convention on Psychotropic Substances, 1971 3. Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988 Strategy to reduce narcotic drug demand 1. 2. 3. 4. education treatment rehabilitation social integration
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Therefore, India has an international obligation to curb drug abuse.
Beggars
Problem #1: No laws
No firm and authentic information regarding number of beggars in the country. According to the unpublished data of Census 2001, there were ~7 lakh beggars and vagrants. at present, there arent any specific Central Act or clear policy on prevention/rehab of beggars. Although following laws contains provisions to prevent begging: Indian Penal Code (IPC), the Juvenile Justice (Care and Protection of Children) Act 2000 Indian Railway Act 1989
Problem #2: No schemes

no central schemes directly related to beggary. many beggars suffer from various types of disabilities, including mental illness and are addicted to various narcotic drugs (apart from the omnipresent desi liquor). although there are schemes for elderly, PH, and druggies that also cover issues/problems of beggary.
12th FYP for beggars

Make law
Model Legislation on Beggary at the Central level which can be suitably adapted by States/UTs. National policy for beggars new programme/scheme like Integrated Programme for Rehabilitation of Beggars. This program may include 1. 2. 3. 4. Night Shelter-cum-Work Production Centre; Multiple Skill Training; Mobile Health Care; Counselling; Awareness Generation; and Sensitization and other fancy stuff.
Make scheme
It remains to be seen whether this scheme also get named after you know who!
Mock Question
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1. Correct Statement about Human Development Index a. It is an arithmetic mean of three dimensions of Human Development viz Health, income and education b. It measures income in terms of GDP per capita c. It measure education in terms of gross enrollment(1/3rd weight) + adult literacy (2/3rd weight) d. None of Above 2. Human Development Report (HDR)-2013 a. Highlights the topic Rise of the South: Human Progress in a Diverse World. b. Ranks Australia 2nd in the HDI index for 2012 c. Rank Niger and Congo at the bottom in HDI ranking. d. All of Above 3. For HDI-2012 index, among the BRICS nation, a. India ranks higher than Russia but lower than China b. China ranks higher than India but lower than Russia c. China rank higher than both India and Russia d. None of above 4. Correct statements HDR-2013 a. Apart from HDI, it also provides Gender Inequality Index, Multidimensional poverty index, Hunger and malnutrition index. b. In HDI ranking, it allots same rank to Pakistan and Bangladesh c. Both d. None 5. Dr.NC Saxena Committee a. was setup by planning Commission b. to recommend changes in the existing procedure used for official estimation of poverty. c. Said that more than 77% of Indian public is below poverty line d. None of above. 6. Suresh Tendulkar Committee was a. was setup by Rural Development Ministry b. to advise on the suitable methodology for BPL Census. c. recommended Mixed Reference Period (MRP) equivalent Poverty Line Basket (PLB) method for poverty-estimation. d. None of Above 7. Correct Statements a. Awaasoft is an MIS software developed energy efficient habitats under National Action plan for climate change. b. Nirmal Bharat Abhiyan (NBA) wants 100 per cent access to sanitation for all rural households by 2015. c. Aajeevika is an initiative by rural Development ministry to to lift the assisted rural poor families above the poverty line. d. None of above. 8. Correct Statements a. Rajiv Gandhi National Fellowship Scheme provides scholarship for ST-SC students pursuing Masters level courses and PhD/Post-Doctoral courses abroad. b. Top Class Education scheme provides free coaching for SC, ST,
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9.
10.
11.
12.
13.
14.
15.
16.
Minorities preparing for competitive exams in UPSC, SSC, Railways, State PSCs c. Pradhan Mantri Adarsh Gram Yojana seeks integrated Development of minorities dominated villages d. None of Above Consider following statements (A) No communities of Pondicherry are notified as scheduled tribes. (R) Pondicherry is neither in 5th or in 6th schedule. a. Both (A) and (R) are true and (R) is the correct explanation of (A). b. Both (A) and (R) are true and (R) is not the correct explanation of (A). c. A is true but (R) is false. d. A is false but (R) is true. Correct Statements about PESA act a. Parliament had to enact PESA Act Because under AFSPA, provisions related Panchayat didnot apply to scheduled and disturbed areas without parliamentary approval. b. Among other things, it provides right to live in forest and right to self-cultivation for livelihood. c. Both d. None Which of the following is not a statutory body? a. National commission for protection of child rights b. special officer for linguistic minorities. c. Rehabilitation council of India d. Chief Commissioner for persons with disabilities Correct Statement a. TRIBES INDIA, are exclusive shops setup by the Ministry of Commerce to market tribal handicrafed items. b. National Safai Karmacharis financing development Corporation provides loans only to Safai Karmacharis living below double the poverty line. c. Majority population in Lakshadweep is Christian. d. None of Above Among the following, which one was enacted first a. Act to prohibit Indecent Representation of women in media b. Act to prohibit domestic violence against women c. Act to establish National commission for women d. Act to protect children from sexual offenses What is the function of Ahimsa Messangers? a. They promote peace and unity in communinally sensitive areas b. They encourage naxals to lay down arms and join mainstream c. They encourage terrorists and extremists in J&K and North East to lay down arms and join mainstream d. They work for prevention of domestic violence against women. Beijin Platform for action is related with a. Rights of the disabled b. Children rights c. Refugee rights d. Women rights Priyadarshini is a scheme for a. education and nutrition of adolescent girls
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17.
18.
19.
20.
21.
22.
23.
24.
b. nutrition and health of pregnant mother c. shelter homes for victims of sexual crimes, dowry etc. d. none of above Saksham is a scheme for a. Self defense training for adolescent girls under SABLA framework b. Low interest credit facility for Women SHG c. for gender sensitization among adolescent boys d. None of above Swadhar Greh is created by merging a. Swadhar + Short stay home b. Swadhar + working womens hostel c. Swadhar + SABLA d. Swadhar + STEP Incorrect Match? a. Swadhar greh: Women in difficult circumstances b. Ujjawala: girls / women in prostitution c. Swavalamban: banking penetration in rural areas d. None of above Which of the following is a conditional cash transfer scheme a. Dhanlakshmi b. Indira Gandhi matritva Sahyog yojana c. Both d. None Correct statements about Indian and the UN convention on rights of children a. India has ratified this UN convention. b. India has not ratified two optional protocals under this convention, related with children in armed conflict and child pornography. c. Both correct d. None correct 12th Five year plan seeks a. Separate quota under Indira Awas Yojana and Rajiv Awas Yojana for Single women b. separate column in all Government and non-Government records to include the third gender c. Both d. None which of the following is a target of 12th Five year plan? a. Improve Child Sex Ratio to 980 by 2017 b. Reduce anemia in girls and women by half c. Both d. None Correct statement a. Hindu Succession Amendment Act (HSAA), 2005 grants land inheritance rights to women except for agricultural land. b. Child Labour (Prohibition and Regulation) Act of 1986 prohibits employment of children in both hazardous and non-hazardous industries. c. As per the amended IMS act, direct advertisement of infant milk substitutes(IMS) and bottle-feeding is permitted. d. None of above
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25. correct statements about Persons with disabilities Act a. provides for 4% reservation in Government employment to PH candidates b. Deendayal Disabled Rehabilitation Scheme was launched for effective implementation of this act. c. Both d. None 26. Who benefits directly from ARUNIM, ADIP, ALIMCO a. Student from minority community b. Tribal artisan c. Physically disabled person d. None of above 27. In 2012, a new Department of Disability Affairs was setup in which ministry? a. Health and family welfare b. Social Justice & Empowerment c. Rural development d. None of above 28. Draft National Youth Policy 2012 a. Defines youth as any person under 13-35 age group. b. Proposes creation of Youth Development Index. c. Will be implemented by Ministry of social justice and empowerment d. None of above 29. Incorrect statement about Senior Citizens Welfare Act a. Senior citizens are defined as those above the age of 60 years b. State Governments are required to constitute Maintenance Tribunals for them. c. Lawyers are permitted to represent either party before such Tribunals d. None of above 30. Which of the following lady fought against the British? a. During freedom struggle, Rani Rudramma Devi and Rani Gaidenlou Zeliang fought against British in South and North Eastern region respectively. b. Rajiv Gandhi Manav Seva Award are given for outstanding contribution to human rights, poverty elimination and communal harmony. c. Both d. None
URL to article: http://mrunal.org/2013/05/economic-survey-ch13-humandevelopment-part-4-of-4-physically-disabled-elderly-nomadic-denotified-tribesdrug-junkies-and-beggars.html Posted By Mrunal On 23/05/2013 @ 18:55 In the category Economy
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Economic Survey (2012-2013)

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Why Economic Survey = Boring?

Mrunal [Economic Survey Ch1] Introduction, GDP FC MC relation ...

Link between GDP FC/MC?

Mrunal [Economic Survey Ch1] Introduction, GDP FC MC relation ...

Why India cant bounce back easily?

Crude oil prices

Mrunal [Economic Survey Ch1] Introduction, GDP FC MC relation ...

Mrunal [Economic Survey Ch1] Introduction, GDP FC MC relation ...

Only 1 and 3 Only 2 and 2 Only 3 and 4 Only 4

URL to article: http://mrunal.org/2013/03/economic-survey-ch1-introduction-gdp-fcmc-relation-part-1-of-3.html

Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...

#1: Tight monetary policy

Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...

EMI and interest rates also increased.= bike/car purchases decreased.

#2: Exports declined

#3: Policy bottlenecks

#4: investment in Valuables

Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...

Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...

Why do people invest in gold?

Gold -Current Account Deficit (CAD)

Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...

How to stop gold rush?

Inflation indexed bonds

Choice a. Only 1 and 2

Mrunal [Economic Survey Ch1] Investment, Savings, Gold Rush, Inf...

URL to article: http://mrunal.org/2013/03/economic-survey-ch1-investment-savingsgold-rush-reasons-inflation-indexed-bonds.html

Mrunal [Economic Survey Ch1] Agriculture challanges, tax to GDP, ...

AGRO and Food Management

Agriculture: Problem areas? #1: Land holding

#2: Nutritional security

Mrunal [Economic Survey Ch1] Agriculture challanges, tax to GDP, ...

#3: Supply Chain Management

Tax to GDP ratio?

Mrunal [Economic Survey Ch1] Agriculture challanges, tax to GDP, ...

Steps Taken by Government

Mrunal [Economic Survey Ch1] Agriculture challanges, tax to GDP, ...

URL to article: http://mrunal.org/2013/03/economic-survey-ch1-agriculturechallanges-tax-to-gdp-steps-by-government-part-3-of-3.html

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

[Economic Survey Ch2] Demographic Dividend, Employment, Labour reforms, gist of

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Why jobs are not created? Problem#1: MSME

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

Problem: Bureaucratic procedures

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

Problem: Infra bottlenecks

Problem: Getting finance

Problems in Debt (borrow) method

Problem in Equity (partnership, IPO, shares)

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

Case #2: Shifting business

Rigid Labour laws: Implications?

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

Apprentice: Indian scenario

Problem#1: Apprentice ratio

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

According to ASER Survey-2012 (by NGO Pratham)

Mrunal [Economic Survey Ch2] Demographic Dividend, Employmen...

CONSEQUENCES AND CONCLUSION

Approach #1: Business as usual