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  • Economic Survey: Madhya Pradesh gets ‘applause’ in Economic Survey, mention of Indore’s Bio CNG plant, Ken-Betwa project

    Union Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2023 in the Parliament.

    Highlights

    Indore’s biofuel plant presented as a case study. Parvati-Kalisindh-Chambal link project also mentioned. Bhavantar payment scheme also praised in the economic survey.

    State Bureau, Naiduniya, Bhopal. Union Finance Minister Nirmala Sitharaman presented the country’s Economic Survey 2023 in Parliament on Monday. In this, the efforts made in the socio-economic sector in Madhya Pradesh were appreciated. Under the Swachh Bharat Mission, Indore’s 500 tonne per day production capacity biofuel plant was presented as a case study, while Ken-Betwa and the converted Parvati-Kalisindh-Chambal link project have been mentioned.

    Bhavantar scheme also discussed

    The Bhavantar Bhugtan Yojana implemented to ensure fair price of the produce to the farmers has also been discussed. Under the Swachh Bharat Mission, Indore of the state is a role model for the entire country. A biofuel plant with a production capacity of 500 tonnes per day was set up here by the Indore Municipal Corporation in 2021.

    This plant is operated on the basis of public-private partnership on the model of design-build-finance-operate and transfer. It produces about 17 thousand kg of bio-CNG per day. This plant has helped in preventing 1 lakh 30 thousand tonnes of carbon dioxide emission annually.

    The Indore bio-CNG plant has a processing capacity of 400 metric tonnes per day. It processes organic waste, producing 14.8 metric tonnes of bio-CNG and 80 metric tonnes of fermented organic manure per day.

    Apart from this, Ken-Betwa Link Project, Parvati-Kalisindh Chambal Link Project have been mentioned in the survey. Ken-Betwa Link Project is the first project of the country. This project of Rs 39,317 crore will be implemented by the state with the cooperation of Uttar Pradesh and Central Government.

    Madhya Pradesh is among the states that have achieved the target

    The survey mentions the Niti Aayog’s Sustainable Development Goal Index 2023-24 and states that Madhya Pradesh is among the 10 new states that have been ahead in achieving the goals of sustainable development. Madhya Pradesh is among the fastest growing states with 15 points between 2018 and 2023-24. The survey also discusses the Bhavantar Bhugtan Yojana of Madhya Pradesh while mentioning the framework of the farmer-friendly policy.

  • Budget 2024: FM Sitharaman To Table Economic Survey In Parliament Tomorrow |10 Key Points | Economy News

    New Delhi: India’s Finance Minister Nirmala Sitharaman will table the Economic Survey in Parliament on Monday, July 22, a day before she unveils the Union Budget for a record seventh time. The upcoming budget aims to address unemployment and other ongoing issues in the country.

    Continuing the trend of the last few years, the 2024 Union Budget will be delivered in a paperless format. Notably, the Budget for the Union Territory of Jammu and Kashmir for 2024 will be presented on July 23, 2024.

    Here are 10 Key Highlights of the Economic Survey And Budget 2024 You Need to Know

    1. The Economic Survey is made by the Economic Division of the Department of Economic Affairs in the Ministry of Finance.

    2. The first Economic Survey started in 1950-51 and was part of the budget documents. In the 1960s, it was separated from the budget documents and presented the day before the Union Budget.

    3. In 2022, the theme of the Economic Survey was ‘Agile Approach,’ focusing on India’s economic response to the Covid-19 pandemic.

    4. In 2023, the theme was ‘Recovery Complete’ as the economy was recovering during the Russia-Ukraine war and trying to return to pre-Covid conditions.

    5. This year’s Budget will be Prime Minister Narendra Modi-led government’s first major policy announcement after winning a third term in the Lok Sabha elections.

    6. Finance Minister Nirmala Sitharaman will break the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as Finance Minister. She has also surpassed Manmohan Singh, Arun Jaitley, P. Chidambaram, and Yashwant Sinha, who each presented five budgets.

    7. The Reserve Bank of India recently increased the GDP forecast for the current year 2024-25 to 7.2% from 7% earlier. Strong domestic demand has driven the economy to a growth rate of over 7% in recent years.

    8. The International Monetary Fund (IMF) has raised India’s growth forecast for 2024 from 6.8% to 7%, keeping the country as the fastest-growing in emerging markets and developing economies.

    9. For 2023-24, the government set the fiscal deficit target at 5.9% of GDP, later revised to 5.8%.

    10. India is expected to become the world’s third-largest economy with a GDP of USD 5 trillion in the next three years. By 2030, India could become a USD 7 trillion economy. (With inputs from ANI)

  • Economic Survey: Govt spent 2.1% of GDP on healthcare in 2023, tackled Covid with an agile strategy

    By Express News Service

    NEW DELHI: The well being price range crossed two per cent of the GDP in 2022 towards 1.6 per cent within the earlier 12 months, in keeping with the Economic Survey of India launched on Tuesday.

    It, nonetheless, quoted the fifteenth Finance Commission and the National Health Policy, 2017, to counsel that the general public well being expenditure of the Centre and states collectively ought to be elevated progressively to achieve 2.5 per cent of GDP by 2025.

    Highlighting that the Covid-19 virus posed an unprecedented problem to the nation, the survey, which was tabled on Tuesday within the parliament, stated it was tackled with an agile strategy.

    It stated over two years because the pandemic was declared, the federal government has taken varied fiscal and social measures to stability the revival of the economic system and take care of growing caseloads. “These included ramping up physical and digital health infrastructure, enhanced training of health professionals and continuing with the mass vaccination drive,” stated the Survey, which Union Finance Minister Nirmala Sitharaman introduced.

    Noting that “India may have won a major battle” as in the previous couple of months, the Covid-19 caseload has subsided considerably, it described CoWIN as a profitable digital story to inform because the administration of greater than 220 crores of Covid-19 vaccine doses was made potential due to the strong digital infrastructure of Co-WIN. 

    The Survey additionally stated that India’s home pharmaceutical market is estimated to achieve USD 130 billion by 2030, and the pharma trade has sustained its development momentum after the pandemic.

    Also, pharmaceutical exports achieved a wholesome development of 24 per cent in 2021, pushed by Covid-19-induced demand for vital medication and different provides made to over 150 international locations.

    The Survey stated the National Health Policy 2017 envisages as its purpose the attainment of the best potential degree of well being and well-being for all in any respect ages via a preventive and promotive healthcare orientation in all developmental insurance policies and common entry to good high quality healthcare companies with out anybody having to face monetary hardship as a consequence.

    “This would be achieved through increasing access, improving quality, and lowering the cost of healthcare delivery.”

    It added that preserving this in thoughts the “Central and State Governments’ budgeted expenditure on the health sector reached 2.1 per cent of GDP in 2023 and 2.2 per cent in 2022, against 1.6 per cent in 2021.”

    The share of expenditure on well being within the whole spending on social companies has elevated from 21 per cent in 2018-19 to 26 per cent in 2022-23.

    It additionally stated that the federal government has been in a position to increase rural well being infrastructure, see an increase within the variety of docs, nurses and different medical personnel and listed how health-related indicators comparable to institutional births, immunisation and protection of medical health insurance, have witnessed an uptrend prior to now eight years.

    The social safety expenditure on well being, which incorporates the social medical health insurance programme, government-financed medical health insurance schemes, and medical reimbursements made to authorities workers, has elevated from 6 per cent within the monetary 12 months 2014 to 9.6 per cent within the monetary 12 months 2019. 

    It famous that it is a vital enhance which exhibits that the residents are higher outfitted and supplied with healthcare at their doorstep, making it extra accessible.

    Due to a number of such steps, Out-of-Pocket Expenditure (OOPE) as a proportion of whole well being expenditure has declined considerably from 64.2 per cent in 2014 to 48.2 per cent in 2019.

    NEW DELHI: The well being price range crossed two per cent of the GDP in 2022 towards 1.6 per cent within the earlier 12 months, in keeping with the Economic Survey of India launched on Tuesday.

    It, nonetheless, quoted the fifteenth Finance Commission and the National Health Policy, 2017, to counsel that the general public well being expenditure of the Centre and states collectively ought to be elevated progressively to achieve 2.5 per cent of GDP by 2025.

    Highlighting that the Covid-19 virus posed an unprecedented problem to the nation, the survey, which was tabled on Tuesday within the parliament, stated it was tackled with an agile strategy.

    It stated over two years because the pandemic was declared, the federal government has taken varied fiscal and social measures to stability the revival of the economic system and take care of growing caseloads. “These included ramping up physical and digital health infrastructure, enhanced training of health professionals and continuing with the mass vaccination drive,” stated the Survey, which Union Finance Minister Nirmala Sitharaman introduced.

    Noting that “India may have won a major battle” as in the previous couple of months, the Covid-19 caseload has subsided considerably, it described CoWIN as a profitable digital story to inform because the administration of greater than 220 crores of Covid-19 vaccine doses was made potential due to the strong digital infrastructure of Co-WIN. 

    The Survey additionally stated that India’s home pharmaceutical market is estimated to achieve USD 130 billion by 2030, and the pharma trade has sustained its development momentum after the pandemic.

    Also, pharmaceutical exports achieved a wholesome development of 24 per cent in 2021, pushed by Covid-19-induced demand for vital medication and different provides made to over 150 international locations.

    The Survey stated the National Health Policy 2017 envisages as its purpose the attainment of the best potential degree of well being and well-being for all in any respect ages via a preventive and promotive healthcare orientation in all developmental insurance policies and common entry to good high quality healthcare companies with out anybody having to face monetary hardship as a consequence.

    “This would be achieved through increasing access, improving quality, and lowering the cost of healthcare delivery.”

    It added that preserving this in thoughts the “Central and State Governments’ budgeted expenditure on the health sector reached 2.1 per cent of GDP in 2023 and 2.2 per cent in 2022, against 1.6 per cent in 2021.”

    The share of expenditure on well being within the whole spending on social companies has elevated from 21 per cent in 2018-19 to 26 per cent in 2022-23.

    It additionally stated that the federal government has been in a position to increase rural well being infrastructure, see an increase within the variety of docs, nurses and different medical personnel and listed how health-related indicators comparable to institutional births, immunisation and protection of medical health insurance, have witnessed an uptrend prior to now eight years.

    The social safety expenditure on well being, which incorporates the social medical health insurance programme, government-financed medical health insurance schemes, and medical reimbursements made to authorities workers, has elevated from 6 per cent within the monetary 12 months 2014 to 9.6 per cent within the monetary 12 months 2019. 

    It famous that it is a vital enhance which exhibits that the residents are higher outfitted and supplied with healthcare at their doorstep, making it extra accessible.

    Due to a number of such steps, Out-of-Pocket Expenditure (OOPE) as a proportion of whole well being expenditure has declined considerably from 64.2 per cent in 2014 to 48.2 per cent in 2019.

  • Economic Survey: Government schemes helped increase insurance coverage attain

    New Delhi: Government schemes and monetary inclusion initiatives have pushed insurance coverage adoption throughout segments, in response to the Economic Survey 2022-23 tabled within the Parliament on Tuesday.

    The authorities’s flagship initiative for crop insurance coverage, Pradhan Mantri Fasal Bima Yojana (PMFBY), has led to vital progress within the premium earnings for crop insurance coverage. Ayushman Bharat (Pradhan Mantri Jan Arogya Yojana) (AB PMJAY) goals at offering a well being cowl of ₹5 lakh per household per yr for secondary and tertiary care hospitalisation.

    Insurance Regulatory and Development Authority of India (IRDAI) has additionally undertaken numerous initiatives for enhancing insurance coverage attain, equivalent to allowing insurers to conduct video-based Know Your Customer (KYC), launching standardised insurance coverage merchandise, and permitting insurers to supply rewards for low-risk behaviour. Important authorities initiatives, sturdy demographic elements, a conducive regulatory surroundings, elevated M&As, product improvements, and vibrant distribution channels are supporting the insurance coverage market’s progress, as per the survey.

    For occasion, Ayushman Bharat Yojana offers well being protection of ₹5 lakh per beneficiary household each year to poor and susceptible households recognized based mostly on choose deprivation and occupational standards. Under Pradhan Mantri Suraksha Bima Yojana scheme, threat protection of ₹2 lakh for unintentional loss of life and full incapacity and ₹1 lakh for partial incapacity is given to beneficiaries.

    The Survey additionally stated that insurance coverage penetration in India elevated steadily from 2.7% across the flip of the millennium to 4.2% in 2020 and remained the identical in 2021. Life insurance coverage penetration in India was at 3.2% in 2021, virtually twice greater than different rising markets and barely above the worldwide common. However, most life insurance coverage merchandise bought in India are savings-linked, with only a small safety part. Hence, households stay uncovered to a major financing hole within the occasion of the untimely loss of life of the first breadwinner. Be that as it might, insurance coverage density in India has elevated from $11.1 in 2001 to $ 91 in 2021 (density for Life insurance coverage was $69 and Non-Life insurance coverage was $22 in 2021) in line with the comparatively sooner growth of the insurance coverage market within the nation.

    During FY22, gross direct premium of non-life insurers, inside and out of doors India, rose 10.8% year-on-year (YoY), primarily pushed by well being and motor segments. Net incurred claims of non-life insurers stood at ₹1.4 lakh crore in FY22, primarily pushed by rising per capita earnings, product improvements and customisation, growth of sturdy distribution channels, and rising monetary literacy. The life insurance coverage premium registered YoY progress of 10.2% in FY22, with new companies contributing 45.5percentof the entire premiums acquired by the life insurers. The life insurance coverage business paid advantages of ₹5.02 lakh crore in FY22, out of which 8.3% had been on loss of life claims.

    To facilitate the penetration of insurance coverage to decrease earnings segments of the inhabitants, the regulator issued IRDAI (Micro Insurance) Regulations, 2015, which offer a platform for distributing insurance coverage merchandise which can be reasonably priced for rural and concrete poor and promote monetary inclusion. In FY21, 10.7 lakh new micro-insurance insurance policies had been issued to people with a brand new enterprise premium of ₹355.3 crore (within the life-insurance phase), and 53,046 new microinsurance insurance policies had been issued within the basic insurance coverage phase (excluding standalone well being insurers), as per the Survey.

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  • Do ‘maximum best’: FM urges business to be ‘Team India’ Inc

    Asking the personal sector to hitch ‘Team India’, Finance Minister Nirmala Sitharaman on Monday urged the business to step up their investments according to the federal government’s push for capital expenditure. She additional stated that the funding in infrastructure will crowd in personal funding, including that there’s a must put money into dawn sectors.
    “I would think this is the opportune time for private investments to come in, expand your capacities, build new capacities , corporate tax reduced much before the pandemic … I would appeal to you to not let this opportunity go away,” Sitharaman stated at a PHD Chamber post-Budget occasion. Sitharaman requested the business leaders to do their ‘maximum best’ and be a part of the ‘Team India’ and be sure that India is certainly the quickest rising economic system this 12 months, subsequent 12 months and the a number of years afterwards.

    The authorities has estimated the economic system to develop 9.2 per cent within the present fiscal. For the subsequent fiscal, the Finance Ministry’s Economic Survey has pegged the GDP development price at 8-8.5 per cent.
    “If India shall be the fastest growing economy among the large economies, I am sure that would also be because you have come forward, Iam sure it’s also going to be because India as a team — government and private — will have to work together. India as a team has to work together. It just cannot be the government doing it,” she stated.
    Noting the rise in authorities’s capital expenditure outlay by 35 per cent to Rs 7.5 lakh crore subsequent fiscal, she stated public funding in infrastructure will end in crowding-in of personal investments.
    Sitharaman stated infrastructure has been constructed within the nation over time however there was a disconnect with logistics and provide chains. “Understanding the length and breadth of this country, economic corridors are going to be built. Logistics hubs are going to be built so that you are going to have interconnectivity with all…infrastructure was built in the country. Since the time we had independence…huge temples of democracy they were called. We fell short because they were standing on their own.They have no connection with raw material supply points or ports, so logistics costs became too much. That is the disconnect which PM Gati Shakti will guide us,” she stated.

    The different observe is the alternatives with startups and the dawn sector, she stated. “The young generation is coming up with various unicorns, this has given us new returns and a mind to invest in these new minds. Compliances have been made easy and this will inspire the coming generation who want to do business,” she stated.

  • Economic Survey: Buoyant tax mop-up frees fiscal area for spending

    A DAY forward of the Union Budget for 2022-23, the Economic Survey tabled within the Lok Sabha by Finance Minister Nirmala Sitharaman identified that buoyant tax revenues supplied the federal government fiscal area to offer further assist to the financial system and proceed the push in favour of upper capital expenditure. Though output in varied contact intensive companies remained under pre-pandemic ranges, it stated the macroeconomic power offered buffers in opposition to possible stresses comparable to withdrawal of stimulus by international central banks.
    A pointy rise in tax collections and a lift to non-tax revenues following RBI’s surplus switch have led to a rise within the income pool. This would allow the federal government to fulfill its fiscal deficit goal of 6.8 per cent of Gross Domestic Product in 2021-22, the Survey stated. “The targeted focus on capital expenditure, with its resulting multiplier effects, will be vital in sustaining the economic growth,” it famous.

    The Survey — which is an financial report card for the present 12 months — additionally argued that the banking sector was now effectively positioned to assist the financial system as it’s “well capitalised and the overhang of non-performing assets seems to have structurally declined.” As and when the demand for credit score returns, the banks are there to assist it, whereas increased authorities spending will crowd in non-public funding, stated Sanjeev Sanyal, Principal Economic Advisor within the Union Finance Ministry.

    Elevated authorities spending, together with a push in capital spending, is feasible because the income receipts of the Central authorities throughout April- November 2021 have elevated 67.2 per cent (year-on-year), as in opposition to the 9.6 per cent progress for the complete 12 months as per Budget Estimates. The mop-up has been buoyant for each direct and oblique taxes. The gross month-to-month Goods and Services Tax collections have crossed the Rs 1 lakh crore mark persistently since July 2021, after rapidly recovering from a dip in June 2021 following the second wave of Covid-19.

    “As the economy grows further, the revenue collection from all the sources is expected to be more robust, which will help to strengthen the fiscal position on one hand, and create fiscal space on the other. Thus, it is expected that reaching the budget estimate for fiscal deficit during 2021-22 will not be a concern for the Central Government,” the Survey stated. The fiscal deficit for April-November 2021 has been contained at 46.2 per cent of Budget Estimates (BE) — as in opposition to 135.1 per cent of BE in April-November 2020 and 114.8 per cent of BE in April-November 2019.
    Responding to the Survey’s statement that on the finish of 2021-22 the financial system would have recovered to the pre-pandemic degree, Congress chief and former Finance Minister P Chidambaram stated, “In plain language, it means that on 31.3.2022 the GDP will be at the same level as it was on 31.3.2020… The two years have impoverished people… This is a time for contrition and change (of approach), not for boasts and no change.”
    The Survey famous increased capital expenditure has been central to the present 12 months’s funds and financial restoration. “The expenditure policy of the Central government during 2021-22 has a strong emphasis on capital expenditure. Budget 2021-22 had not only enhanced the expenditure estimates but also directed them towards more productive capital expenditure. During April to November 2021, capital expenditure registered a growth of 13.5 per cent over April to November 2020 and 28 per cent over April to November 2019,” it stated.
    The authorities has budgeted a 34.5 per cent progress in capital expenditure this 12 months over 2020-21 funds estimates, with emphasis on railways, roads, city transport, energy, telecom, textiles and reasonably priced housing. The Survey commentary signifies the Budget for the following 12 months might go for milder fiscal consolidation whereas persevering with the capital expenditure push.

    Higher spending by states is one other issue that’s anticipated to assist progress. “In the first eight months of the current financial year, states’ capital expenditure has gone up by 67 per cent compared with the previous financial year’s eight months. So in this uncertain pandemic era, governments have done what they are expected to do — front load growth and support it. On the back of it, it will crowd in the private sector, which will lead to job creation and employment growth,” the brand new Chief Economic Adviser V Anantha Nageswaran stated in a press convention.
    In continuation with the “barbell strategy” from earlier 12 months’s Economic Survey, this 12 months’s survey has prompt utilizing the “Agile” strategy to make use of 80 high-frequency indicators “in an environment of extreme uncertainty”. The Agile strategy, utilized in fields like mission administration and know-how improvement, assesses outcomes in brief iterations whereas always making incremental changes.

  • Bumps in street forward: Inflation hit on capital flows, unemployment

    Despite a projected 9.2 per cent development in GDP in FY22 to above pre-Covid ranges, the nation’s economic system continues to face a slew of structural challenges that existed previous to the pandemic and new challenges introduced on by Covid-19.
    Inflation is the strongest of those headwinds. The Economic Survey 2021-22 notes that provide chain disruptions and gradual financial development have contributed to a rise in inflation. The withdrawal of stimulus in developed economies within the upcoming fiscal is prone to have an effect on capital flows into the nation.
    “The surge in energy, food, non-food commodities, and input prices, supply constraints, disruption of global supply chains, and rising freight costs across the globe stoked global inflation during the year,” the Survey mentioned, noting that stimulus spending in developed economies and pent-up demand through the pandemic might result in “imported inflation” in India.
    Retail inflation has moderated to five.2 per cent through the April-December interval of FY22 from 6.3 per cent within the earlier fiscal. Wholesale inflation, which interprets to larger retail inflation over time, has risen sharply to 12.5 per cent within the fiscal up to now — up from 0 per cent final yr and up considerably even from FY19 which was unaffected by Covid-19 and noticed wholesale inflation of 4.3 per cent.
    Key drivers of inflation embrace oils and fat in addition to gas costs pushed up by excessive worldwide costs of the commodities.

    The Survey famous that main economies had begun the method of withdrawing liquidity that was prolonged through the pandemic within the type of stimulus checks and relaxed financial coverage to stimulate an financial restoration. Higher inflation has, nonetheless, led to a winding down of pandemic-related stimulus.
    “The likely withdrawal of liquidity by major central banks over the next year may also make global capital flows more volatile,” it mentioned, noting that this will likely adversely have an effect on capital flows, placing strain on India’s change charge and gradual financial development. Large and rising imports are additionally prone to put strain on India’s change charge if capital flows to the to nation fall because of a withdrawal of stimulus in developed international locations
    An absence of jobs continues to be among the many major considerations for the Indian economic system, with unemployment ranges and labour pressure participation charges remaining worse than pre-pandemic ranges.

    As per knowledge from the Periodic Labour Force Survey (PLFS), whereas the unemployment charge and labour pressure participation charge have improved considerably from the beginning of the pandemic, they’d nonetheless not recovered to pre-Covid ranges by Q4FY21.
    Unemployment charge — which hit a excessive of 20.8 per cent within the first quarter of FY21 — fell to 9.3 per cent in This autumn of the monetary yr, however remained above the extent 7.8 per cent witnessed in Q2 of FY20 which was unaffected by the pandemic.
    The labour pressure participation charge, at 47.5 per cent throughout Q4FY21, was nonetheless beneath the extent of 48.1 per cent seen in Q4FY20.

  • For ease of doing biz, focus set on ‘process reforms’, easing exit norms

    THE ECONOMIC Survey 2021-22, which was tabled in Parliament on Monday, has integrated the theme of ‘process reforms’ — defining it as “simplification and smoothening of the method for actions the place the federal government’s presence as a facilitator or regulator is critical’’. The Survey has outlined the necessity for reforms, together with simplification of voluntary liquidation course of for corporates for ease of exit and for institutionalising a regular Cross Border Insolvency Process, together with the necessity for reforms within the patent software regime.
    Voluntary liquidation
    Liquidation could be involuntary as within the case of insolvency or chapter; or voluntary, which may very well be on account of private causes and subsidiaries being merged. An organization might determine to voluntarily shut its operation even when it’s viable. “There is a case for simplifying the problem in the Voluntary Liquidation process, to improve ease of exit for business. Apart from simplifying the issues in the various steps in the processes, there is a need for the creation of a single window for the entire process. A portal that combines all the steps of the liquidation process altogether, starting from application by companies to processing by all departments will prove to be very useful,” it stated. As of September 2021, 1042 circumstances have been filed below voluntary liquidation, out of which, last experiences have been acquired for 483 circumstances, and the ultimate order of dissolution has been handed in 257 circumstances. Of the continuing circumstances, practically 32 per cent of the circumstances are pending over 2 years and 19 per cent for 1-2 years.
    Cross-border insolvency
    Cross border insolvency entails circumstances through which an bancrupt debtor has belongings and/or collectors in a couple of nation. The Survey stated the present provisions below IBC are ad-hoc in nature and are vulnerable to delay. Entering into mutual (reciprocal) agreements requires particular person long-drawn-out negotiations with every nation. This results in uncertainty of outcomes of claims for collectors, debtors and different stakeholders, the Survey talked about. Therefore, there’s a want for a standardised framework for cross-border insolvency, it stated. Insolvency and Bankruptcy Code, 2016 (IBC) supplies for the home legal guidelines for the dealing with of an bancrupt enterprise. At current, IBC has no commonplace instrument to restructure the corporations involving cross border jurisdictions. Citing the report of the Insolvency Law Committee (October 2018), it stated the the United Nations Commission on International Trade Law (UNCITRAL) may very well be adopted with sure modifications to go well with the Indian context.

    Delays for granting patents
    Highlighting India’s low expenditure on Research and Development (R&D) actions as one of many key causes for comparatively low patents in India vis a vis the US, China, the Survey stated the procedural delays and complexity of the method additionally lead to low patents in India. “The average pendency for final decision in acquiring patents in India is 42 months as of 2020. This is much higher than 20.8, 20, 15.8 and 15 months respectively for the USA, China, Korea and Japan,” it stated. The common pendency for last determination in buying patents has decreased in India from 64 months in 2017 to 52 months in 2019 and additional to 42 months in 2020.

    Most of India’s startups are within the IT/ knowledge-based sector. The time taken for step one for a patent, i.e. publishing the applying by the controller, is presently 18 months in India, in comparison with 15.4, 14.4, 11.1, 10.2 months, respectively, within the US, China, Korea and Japan. To cut back the time taken within the software course of, prescribed limits for step one could also be decreased to 14-15 months.

  • Post-Covid financial system won’t merely be re-inflation of pre-Covid financial system: Economic Survey

    It said that supply-chain breakdowns triggered an interruption of the financial system’s supply-side which additionally squeezed demand, however it’s not right to see the pandemic associated financial slowdown as only a demand downside.
    “…the post-Covid economy will not be merely a re-inflation of the pre-Covid economy. Simply building it back with demand measures is not a solution,” it mentioned.

    The emphasis given to the supply-side in India’s COVID-19 response is pushed by two vital issues: first, Indian policymakers noticed the disruptions attributable to travel-restrictions, lockdowns and supply-chain breakdowns as an interruption of the financial system’s supply-side. “Although this also squeezed demand, it is not correct to see the pandemic related economic slowdown as just a demand problem as happens with most economic cycles,” it mentioned. Second, the post-Covid world shall be impacted by all kinds of things – adjustments in expertise, client behaviour, geo-politics, supply-chains, local weather change, it added.

    The Survey has flagged dangers from rising inflation from each a tighter international liquidity situation and trade charge volatility in international foreign money. “In 2021, inflation picked up globally as economic activity revived with the opening up of economies. Inflation in the US touched 6.8 per cent in November 2021, the highest since 1982, driven largely by energy and food prices. As inflation worries are mounting, a distinct shift towards the unwinding of pandemic-led stimulus is taking hold. This may result in tightening of financial conditions, adversely affecting capital flows, putting pressure on exchange rate and slowing down growth in emerging economies,” it mentioned.

    Highlighting the divergence between wholesale and retail inflation, it mentioned imported inflation is an issue and must be taken into consideration. The excessive WPI-based inflation charge in 2021 is essentially attributable to the low base of the previous 12 months, whereas retail inflation that had remained excessive throughout 2020-21 as a result of provide chain disruptions and excessive meals inflation moderated in 2021-22 on account of efficient provide aspect administration, leading to a divergence between WPI and CPI primarily based inflation, it mentioned. “…unanticipated increase in energy prices and emergence of industrial input cost pressure and high freight costs led to a sharp spike in WPI inflation in 2021. This was reflected in high WPI inflation in the fuel group and manufactured sector during the year. Thus, while on the one hand, low food inflation pulled down CPI, on the other hand high energy and input prices pulled up WPI based inflation rate,” it mentioned.

    The Survey additionally said that the stability of dangers for international commerce is tilted to the draw back, with the largest danger from the pandemic, notably with resurgence of recent variants corresponding to Omicron. In addition to the surge in international inflation, longer port delays, increased freight charges, scarcity of transport containers, scarcity of inputs corresponding to semiconductors, with supply-side disruptions being exacerbated by restoration in demand, pose important dangers, inter alia, for international commerce.
     

  • Budget session 2022: In tackle to Parliament, President Kovind highlights Govt reforms, vaccination success

    Observing India has once more emerged as one of many fastest-growing economies of the world, President Ram Nath Kovind on Monday urged the individuals to “work hard” for constructing a “grand, modern and developed” nation by 2047.
    Addressing each Houses of Parliament, Kovind stated, “Due to consistent endeavours of my government, India has again emerged as one of the fastest-growing economies in the world.”

    Kovind stated, “In the year 2047, the country will celebrate its centenary of Independence. We have to work hard now for building a grand, modern and developed India of that time. We have to ensure that our hard work leads to fruitful results in the end. We all have a stake, and an equal stake in this journey.”

    “Today the country’s achievements and successes are as limitless as the country’s potential and possibilities. These achievements are not of one institution or establishment; these are the collective achievements of more than a billion citizens of our country…,” he stated. “I have a firm belief that together we will take our great Bharatvarsha to the pinnacle of its glory,” he stated.
    GST, exports
    The President additionally talked about the progress of the varied sectors of the economic system.
    “GST collection has consistently remained above Rupees one lakh crore during the last several months. An inflow of $48 billion in the first seven months of the current financial year is a testimony to the belief the global investor community has in India’s growth story. India’s foreign exchange reserves today exceed $630 billion. Our exports are also growing rapidly, breaking several past records. During April to December 2021, our goods-exports stood at 300 billion dollars or more than Rs 22 lakh crore, which is one and a half times more than the corresponding period of 2020,” Kovind stated.

    President Kovind listed varied steps taken by the federal government within the defence sector. “My government is working with utmost determination to ensure a safe and secure India. Due to the policies of the government in the defence sector, especially in defence production, the country is becoming increasingly self-reliant.”
    Discussing the federal government’s free ration scheme, the President stated, “Several major countries have experienced scarcity of food-grains and faced starvation during the Corona crisis. But my sensitive government ensured that nobody remained hungry during the worst pandemic in 100 years. My government is providing free ration to each poor household every month under the Pradhan Mantri Garib Kalyan Anna Yojana. This is the world’s largest food distribution program with an outlay of Rupees two lakh sixty thousand crore reaching out to 80 crore beneficiaries for 19 months.”
    Aatmanirbhar Bharat
    During his 53-minute speech, the President additionally talked about reforms carried out by the federal government below its Aatmanirbhar Bharat programme.
    “In recent times, we have witnessed a new resolve of Aatmanirbhar Bharat taking shape in the country. This resolve is getting further strengthened by the energy emanating from the slew of reforms. From new reforms in labour laws to reforms in the banking sector, and to insolvency and bankruptcy code, this series of reforms is rolling on uninterrupted. Last year, more than 26,000 compliance requirements have been reduced by different departments of the Centre and States. The space sector has now been opened up for the private sector, providing a horizon of endless possibilities…,” he stated.
    “My government believes that remembering the past and learning from it is equally important for a secure future of the country,” Kovind stated.
    “At a time, when India is celebrating the Amrit Mahotsav on the occasion of 75th year of its Independence, this willpower of every Indian creates immense confidence for India’s bright future,” he stated.
    “Azadi Ka Amrit Mahotsav is a sacred occasion for all the Indians to give concrete shape to the resolutions for the next 25 years. My government is moving fast on building a strong foundation for the next 25 years following the mantra of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Aur Sabka Prayas’. The most important resolution related to this foundation is the creation of an India which includes all, benefits all, which is strong and self-reliant,” he stated.
    Pandemic
    The President started his speech by lauding the efforts of well being employees and front-line employees throughout the coronavirus pandemic. “We are in the third year of the pandemic caused by the coronavirus. In these years, people of India have displayed profound faith in the democratic values, discipline and sense of responsibility,” he stated.
    The difficult interval of Corona has impressed us to attain our targets on the quickest doable tempo, he added.

    “The Covid pandemic affected the entire world and in India too, many of our loved ones were snatched away from us. In these circumstances, the Central Government, State Governments, local Governments and administration, our doctors, nurses and health workers, our scientists and entrepreneurs have worked as a team. This mutual trust, coordination and cooperation between the government and citizens is an unprecedented example of the strength of our democracy,” the President stated.

    Appreciating Members of Parliament for discharging their “responsibilities” throughout the pandemic, the President stated, “You are the drivers of hopes and aspirations of crores of our people. It is with the same spirit that we have to keep working in future.”
    The price range session’s first half shall be held from January 31 to February 11 and can go right into a recess after that to look at the budgetary allocations for various departments. The session will resume on March 14 and finish on April 8.