India seen 2nd-most competitive economy in the world

India is likely to emerge as the second most competitive economy in the world after China in terms of manufacturing in the next five years, says a report.

According to the 2013 Global Manufacturing Competitiveness Index compiled by Deloitte Touche Tohmatsu and the US Council on Competitiveness, five years from now, emerging economies would surge to occupy the top three spots.

China would retain the top spot, while, India and Brazil moving up to claim second and third rankings respectively, the report said.

"India's focused and comprehensive national manufacturing strategy, democratic governance and infrastructure development over the next five years may unlock the potential for CEOs around the world to see this rising star," the report said.

The five developed economy nations that were ranked in the top 10 today include -- Germany (2nd), the US (3rd), South Korea (fifth), Canada (seventh) and Japan (tenth), while five emerging economy nations were also ranked in the top 10 today:

China (first), India (fourth), Taiwan (sixth), Brazil (eighth), and Singapore (ninth).

Meanwhile, in the next five years developed economy nations are likely to slip lower in the executive rankings with Germany moving from second to fourth, the US from third to fifth, South Korea from fifth to sixth, Canada from seventh to eighth and Japan falls out of the top 10 moving from tenth to twelfth.

Brazil's jump from eighth to third is the largest jump expected over the next five years. And, Vietnam moves into the top 10 as the tenth most competitive nation.

According to the report talent-driven innovation is deemed the most critical driver of a nation's competitiveness, while, second most important driver position is the economic, trade, financial and tax system of a nation.

This study, gathers data from more than 550 CEOs and senior manufacturing leaders and rank the 38 countries in terms of their manufacturing competitiveness at present and in the next five years.

Ghulam Nabi Azad Chairs the Opening Session of International Conference on Population and Development at Dhaka

Partners in Population and Development (PPD) is an intergovernmental initiative created specifically for the purpose of expanding and improving South-to-South collaboration in the fields of reproductive health, population, and development.

PPD was launched at the 1994 International Conference on Population and Development (ICPD), when ten developing countries from Asia, Africa and Latin America formed an intergovernmental alliance to help implement the Cairo Program of Action (POA).

PPD has presently 25 members countries committed to the implementation of the ICPD Programme of Action, willing to provide political, technical and financial support to South-South Cooperation. While there were only 10 developing countries at the time of formation of the Organization in 1994, over the years PPD’s membership has increased to 25 developing countries across Asia, Middle East and North Africa, Sub-Saharan Africa and Latin America covering more than 57% of total world population. The PPD member countries are: Bangladesh, China, India, Indonesia, Pakistan, Thailand, Viet Nam, Colombia, Mexico, Egypt, Morocco, Tunisia, Yemen, Jordan, Ethiopia, The Gambia, Ghana, Kenya, Mali, Uganda, Benin, Senegal, Zimbabwe, South Africa and Nigeria.

PPD is currently chaired by Shri Ghulam Nabi Azad, Minister of Health and Family Welfare, Government of India, who has been unanimously elected to the post in the 16^th Annual Board Meeting of PPD held in Pretoria, South Africa in 2011.

Shri Ghulam Nabi Azad, Minister of Health and Family Welfare, Government of India, who is currently on an official tour to Bangladesh capital Dhaka, today participated in the opening session of the two-day International Conference on “Evidence for Action: South-South Collaboration for ICPD beyond 2014”, organized jointly by Partners in Population and Development (PPD) and the Government of People’s Republic of Bangladesh. 

South African Government Rolled Out Nelson Mandela Bank Notes

The South African Reserve Bank on 6 November 2012 rolled out new bank notes bearing the face of the country’s first black President Nelson Mandela marking it as a tribute to him.

The Note issued by the South African Reserve Bank, displayed the 94-year-old anti-apartheid icon’s smiling face.

Also, the earlier images of one of the five big animals featured on the old bank notes – lion, leopard, rhino, buffalo and elephant – will be retained on the reverse of the note.

Nelson Mandela is currently living out his retirement in his childhood rural village of Qunu in the Eastern Cape Province.

Nelson Mandela held office between 1994 and 1999 and he is the first black face to appear on South African money.

Government Schemes in India

  Pradhan Mantri Gram Sadak Yojana(PMGSY):

ü  Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25^th December 2000.

ü  It is a nationwide plan in India to provide good all-weather road connectivity to unconnected villages of more than 500 persons in the rural areas (250 persons in the hilly and desert areas).

ü  It is a 100% Centrally Sponsored Scheme.

ü  Allocations under Pradhan Mantri Gram Sadak Yojana (PMGSY) increased by 59 per to Rs.12,000 crore in the Union Budget 2009-10.

   Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY):

ü  It was launched on 4^th April 2005 for attaining the National Common Minimum Programme (NCMP) goal of providing access to electricity to all households in the country in five years by merging “Accelerated Electrification of one lakh Villages and one crore Households” and the “Minimum Needs Programme (MNP)”.

ü  Under the programme, 90% grant is provided by Govt. of India and 10% as loan by Rural Electrification Corporation (REC) to the State Governments.

ü  Rural Electrification Corporation (REC) is the nodal agency for the programme.

ü  The scheme aims at electrification of over 1 lakh un-electrified villages and providing electricity connections to 2.34 crore rural households. The estimated cost of the scheme is approximately Rs. 51,000 crore.

ü  All the BPL families are eligible for free connections under the scheme.

ü  Allocation under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) increased by 27% to Rs.7000cr in the Union Budget 2009-10.

   Indira Awaas Yojana(IAY):

ü  Indira Awaas Yojana (IAY) was launched during 1985-86 as a sub-scheme of Rural Landless Employment Guarantee Programme (RLEGP) and continued as a sub-scheme of Jawahar Rozgar Yojana (JRY) since its launching from April, 1989.

ü  It has been delinked from the JRY and has been made an independent scheme with effect from January 1, 1996.

ü  The objective of IAY is primarily to provide grant for construction of houses to members of Scheduled Castes/Scheduled Tribes, freed bonded labourers and also to non-SC/ST rural people living below poverty line.

ü  Funding of IAY is shared between the Centre & State in the ratio of 75:25.

ü  The financial assistance provided for new construction under IAY is Rs.35,000/- per unit for the plain areas & Rs.38,500/- for the hilly/difficult areas.

ü  Allocation under Indira Awaas Yojana (IAY) increased by 63% to 8,800 cr in the Union Budget 2009-10.

 Bharat Nirman:

ü  Bharat Nirman, a programme to build rural infrastructure, was launched by the Government of India in 2005.

ü  Phase I of the programme was implemented in the period 2005-06 to 2008-09. Phase II is being implemented from 2009-10 to 2011-12.

ü  Bharat Nirman comprises of six components:

 i)Irrigation

 ii)Rural Roads

 iii)Rural Housing

 iv)Rural Drinking Water Supply

 v)Rural Electrification

 vi)Telephone Connectivity.

ü  Pradhan Mantri Gram Sadak Yojana(PMGSY) for Rural Roads , Rajiv Gandhi Vidyutikaran Yojana(RGVY) for Rural Electrification & Indira Awas Yojana(IWY) for Rural Housing come under Bharat Nirman.

ü  Bharat Nirman programme of six schemes for the development of rural infrastructure is being stepped up by 45% in Union Budget 2009-10.

  Pradhan Mantri Adarsh Gram Yojana(PMAGY):

ü  It is a new scheme launched in the Union Budget 2009-10 by the Union Government on a pilot basis for integrated development 0f 1,000 villages, each having more than 50% SC population.

ü  There are about 44,000 villages in which the population of scheduled castes is above 50 per cent. 

ü  If the pilot scheme is successful the scheme will be expanded to remaining villages.

ü  An amount of Rs.100 crore has been allocated for this Scheme in the Union Budget 2009-10.

  National Rural Health Mission (NRHM):

ü  The National Rural Health Mission (NRHM), launched in 2006 as the central government flagship project that would dramatically change the healthcare system in rural India.

ü  The objective of National Rural Health Mission (NRHM) is to provide accessible, affordable, accountable, effective and reliable health care, especially to the poor and the vulnerable sections of the population in rural areas. 

ü  The NRHM covers the entire country, with special focus on 18 States where the challenge of strengthening poor public health systems and thereby improving key health indicators is the greatest.

ü  Allocation under National Rural Health Mission (NRHM) increased by Rs.2,057 crore amounting to 14,064 crore in the Union Budget 2009-10.

   Accredited Social Health Activist (ASHA):

ü  One of the key components of the National Rural Health Mission is to provide every village in the country with a trained female community health activist – ‘ASHA’ or Accredited Social Health Activist for every village with a population of 1000.

ü  ASHA will take steps to create awareness and she will counsel women on birth preparedness, importance of safe delivery, breastfeeding and complementary feeding, immunization, contraception and prevention of common infections including Reproductive Tract infection/Sexually Transmitted Infection (RTIs/STIs) and care of the young child. 

ü  The ASHA will be trained to work as an interface between the community and the public health system.

ü  ASHA must primarily be a woman resident of the village – married/ widowed/ divorced, preferably in the age group of 25 to 45 years.

  National Rural Employment Guarantee Act(NREGA):

ü  The National Rural Employment Guarantee Act or NREGA is an Indian job guarantee scheme, enacted by legislation on August 25, 2005.

ü  This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or un-skilled work to people living in rural India, whether or not they are below the poverty line.

ü  The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage of Rs.100 per day.

ü  The NREGA achieves twin objectives of rural development and employment.

ü  Around one-third of the stipulated work force must be women.

ü  The scheme started from February 2, 2006 in 200 districts, was expanded to cover another 130 districts in 2007-2008 and eventually covered all 593 districts in India in 2008. 

ü  It has been renamed as Mahatma Gandhi Rural Employment Guarantee Act on 2nd October, 2009.

ü  Allocation under NREGS increased by 144% to 39,100 cr in the Union Budget 2009-10.

  Sarva Siksha Abhiyan(SSA):

ü  The scheme of SSA was launched in 2001. 

ü  It is a flagship programme of the Government of India pioneered by Atal Bihari Vajpayee for achievement of universalization of elementary education in a time bound manner.

ü  The Abhiyan is to provide useful and relevant elementary education for children in the 6-14 age group by 2010. 

ü  The assistance under the programme of Sarva Shiksha Abhiyan was on a 85:15 sharing arrangement during the Ninth Plan, 75:25 sharing arrangement during the Tenth Plan, and 50:50 sharing thereafter between the Central Government and the State Government except for 8 NE states.

ü  The programme covers the entire country with special focus on educational needs of girls, SCs/STs and other children in difficult circumstances.

ü  The programme seeks to open new schools in those places which do not have schooling facilities and strengthen existing school infrastructure through provision of additional class rooms, toilets, drinking water, maintenance grant and school improvement grant. 

  Rashtriya Madhyamik Shiksha Abhiyan(RMSA):

ü  Rashtriya Madhyamik Shiksha Abhiyan (RMSA) which is the most recent initiative of Government of India to achieve the goal of universalisation of secondary education (USE) - classes VIII to X.

ü  The Sarva Shiksha Abhiyaan program set up by the government to bring elementary education to millions of children has been successful to a large extent, and has thus created a need for strengthening secondary education infrastructure across the country. 

ü  In Jan 2009 CCEA (Cabinet Committee on Economic Affairs) approved the implementation.

ü  It is announced in 2007 and it is proposed to implement during 11^th Five Year plan

ü  Rs.20,120 crore has been allocated for the Scheme during the 11th Five Year Plan.

NSE 4th largest in number of listed funds

NSE has emerged as the world's fourth largest stock exchange in terms of the number of listed investment funds on its platform, but the Indian bourse ranks low when it comes to the trading turnover of such funds.

For the Asia Pacific region, the National Stock Exchange (NSE) ranks on the top in terms of total number of investment funds, as per the latest data from World Federation of Exchanges (WFE) as on September 30, 2012.
NSE has managed a high rank despite a continuous decline in the number of listed investment funds to 1,060 at the end of September, the data shows.
The number of funds listed at NSE stood at 1,223 in January and came down to 1,060 in August this year.
The exchanges ranked on the top three positions included Luxembourg SE with 6,385 investment funds, followed by BME Spanish Exchanges and Deutsche Borse with 3,034 and 2,832 funds respectively.
Other exchanges that figure in the top 10 are Mexican Exchange (5th), NYSE Euronext (US) (6th), MICEX / RTS (7th), NASDAQ OMX Nordic Exchange (8th), Shenzhen SE (9th) and Santiago SE (10th).
However, NSE has scored among lowest globally in terms of turnover from the investment funds in September.
The turnover from investment funds were a mere USD 64,000 in the month.
Comparatively, NASDAQ OMX recorded the highest turnover from investment funds at USD 7,457 million followed by Shenzhen SE at USD 5,292 million.
Investment funds include UCITS (Undertakings for Collective Investment in Transferable Securities), listed unit trusts, closed-end funds and investment trusts, WFE said.
These are collective funds managed by an investment trust company (a company established with the purpose of investing in other companies) or a management team.
UCITS, listed unit trusts, closed-end funds and investment trusts are all different forms of collective investment, depending on a country's legislation.

List of Government Programs & Schemes of India

1. 1952: Community Development Programme (CDP)overall development of rural areas and people’s participation.
2. 1960-61: Intensive Agriculture Development program (IADP)To provide loan for seeds and fertilizers to farmers
3. 1964-65: Intensive Agriculture Area programme (IAAP)To develop special harvest in agriculture area.
4. 1965 : Credit Authorization Scheme (CAS)Involved qualitative credit control of reserve bank of India
5. 1966-67: High yielding variety programme (HYVP)To increase the productivity of food grains by adopting latest varieties of inputs of crops.
6. 1966-67: Green Revolution:To Increase productivity. Confined to wheat production.
7. 1969: Rural Electrification CorporationTo provide electricity in rural areas
8. 1972 : Scheme of Discriminatory Interest RateTo provide loan to the weaker sections of society at a concessional interest rate of 4%
9. 1972-73 : Accelerated Rural water Supply Programme (ARWSP)
   Providing drinking water in villages
10. 1973: Drought Prone Area Programme:
    Protection from drought by achieving environement balace and by developing ground water
11. 1973: Crash Scheme for Rural Employment CSRE
    For rural employment
12. 1973-74 : Marginal Farmer and Agriculture Labor Agency (MFALA)
    Technical & financial assistance to marginal farmers
13. 1974-75: Small Farmer Development Scheme SFDS
    Technical & financial assistance to small farmers
14. 1975: Command Area Development Programme: (CADP)
    Better utilization of irrigational capacities
15. 1975: Twenty Point Programme (TPP)
    Poverty eradication and an overall objective of raising the level living
16. 1977: National Institution of Rural Development
    Training, investigation and advisory for rural development
17. 1977-78 : Desert Development Programme: (DDP)
    To control the desert expansion by maintaining environment balance
18. 1977-78: Food For Work Programme:providing food grains to labor
19. 1977-78 : Antyodaya Yojna :
    Scheme of Rajasthan, providing economic assistance to poorest families
20. 1979 : Training Rural Youth for Self Employment TRYSEM (launched on 15th August)
    educational and vocational training
21. 1980 : Integrated Rural Development Programme :IRDP (launched on October 2, 1980)overall development of rural poor
22. 1980 : National Rural Development programme NREP
    employment for rural manforce
23. 1982 : Development of Women & Children in Rural Areas (DWCRA)
    sustainable opportunities of self employment to the women belonging to the rural families who are living below the poverty line.
24. 1983 : Rural Landless Employment Guarantee Programme (RLEGP) (Launched on August 15)employment to landless farmers and laborers
25. 1983-84: Farmers Agriculture Service Centers FASCs
    Tell the people use of improved instruments of agriculture
26. 1984 : National Fund for Rural Development : To grant 100% tax rebate to donors and also to provide financial assistance for rural development projects
27. 1985: Comprehensive Crop Insurance Scheme:
    Crop Insurance
28. 1986: Council of Advancement of People’s Action & Rural Technology (CAPART)
    Assistance to rural people
29. 1986: Self Employment Programme for the Poor SEPUP
    Self employment through credit and subsidy
30. 1986: National Drinking Water Mission:
    For rural drinking water renamed and upgraded to Rajiv Gandhi National Drinking Water Mission in 1991.
31. 1988: Service Area Account
    Rural Credit
32. 1989: Jawahar Rozgar Yojna : JRY
    Employment to rural unemployed
33. 1989: Nehru Rozgar Yojna NRY
    Employment to Urban unemployed
34. 1990: Agriculture & Rural Debt Relief Scheme: ARDRS
    Exempt Bank loans up to Rs. 10000 for rural artisans and weavers
35. 1990: Scheme for Urban Micro Enterprises SUME
    Assist urban small entrepreneurs
36. 1990: Scheme of Urban wage Employment SUWEScheme for urban poor’s
37. 1990: Scheme of Housing and Shelter Upgradation (SHASU)
    Providing employment by shelter Upgradation
38. 1991: National Housing Bank Voluntary Deposit Scheme
    Using black money by constructing low cost housing for the poor.
39. 1992: National Renewal Fund
    This scheme was for the employees of the public sector
40. 1993: Employment Assurance Scheme (EAS) (Launched on October, 2)Employment of at least 100 days in a year in villages
41. 1993: Members of parliament Local Area Development Scheme MPLADS (December 23, 1993)
    Sanctioned 1 crore per year for development works
42. 1994: Scheme for Infrastructural Development in Mega Cities : SIDMC
    Water supply, sewage, drainage, urban transportation, land development and improvement slums projects in metro cities
43. 1993: District Rural Development Agency DRDA
    Financial assistance to rural people by district level authority
44. 1993 : Mahila Samridhi Yojna (October 2, 1993)
    Encourage rural women to deposit in Post office schems
45. 1994 : Child labor Eradication Scheme
    Shift child labour from hazardous industries to schools
46. 1995: prime Minister Integrated Urban Poverty Eradication programme PMIUPEP
    To eradicate urban poverty
47. 1995 : Mid day Meal Scheme:
    Nutrition to students in primary schools to improve enrolment, retention and attendence
48. 1996: Group Life Insurance Scheme for Rural Areas
    Insurance in rural area for low premium
49. 1995: national Social Assistance programme:
    Assist BPL people.
50. 1997-98; Ganga Kalyan Yojna
    Provide financial assistance to farmers for exploring ground water resources
51. 1997 Kastoorba Gandhi Education Scheme: (15 August 1997)
    Establish girls schools in low female literacy areas (district level)
52. 1997: Swaran Jayanto Shahari Rojgar Yojna:Urban employment
53. 1998: Bhagya Shree Bal Kalyan Policy
    Upliftment of female childs
54. March 1999 : Annapurna Yojna10 kgs food grains to elderly people
55. April 1999: Swaran Jayanto Gram Swarojgar YojnaSelf employment in rural areas
56. April 1999: Jawahar Gram Samriddhi YojnaVillage infrastructure
57. August 2000 : Jan Shree Bima YojnaInsurance for BPL people
58. 2000 : Pradhan Mantri Gramodaya YojnaBasic needs of rural people
59. December 25, 2000 : Antyodaya Anna YojnaTo provide food security to poor
60. December 25, 2000 : Pradhan Mantri Gram Sadak Yojna:Connect all villages with nearest pukka road.
61. September 2001: Sampoorna Grameen Rozgar YojnaEmployment and food security to rural people
62. December 2001: Valmiki Ambedkar Awas Yojna VAMBAYSlum houses in urban areas
63. 2003: Universal health Insurance Scheme:Health insurance for Rural people
64. 2004: Vande mataram Scheme VMSInitiative of public Private partnership during pregnecy check up.
65. 2004: National Food for Work programmeSupplementary wage as foodgrains for work
66. 2004: Kastoorba Gandhi Balika VidyalayaSetting up residential schools at upper primary levels for girls belonging to predominantly OBC, SC & ST
67. 2005: Janani Suraksha YojnaProviding care to pregnant women
68. 2005, Dec. 16 : Bharat NirmanDevelopment of India through irrigation, Water supply, Housing, Road, Telephone and electricity
69. 2005: National Rural Health Mission:
    Accessible, affordable, accountable, quality health survices to the porest of the poor on remotest areas of the country.
70. 2005: Rajeev Gandhi Grameen Vidyuti Karan Yojna:
    Extending electrification of all villages and habitations and ensuring electricity to every household.
71. 2005: Jawahar Lal Nehru national Urban Renewal Mission: (JNNURM)
    Click here to read more
72. 2006: February 2 : National Rural Employment Guarantee Scheme NREGS100 days wage employment for development works in rural areas.
73. 2007: Rastriya Swasthya Bima Yojna :
    Health insurance to all workers in unorganized area below poverty line.
74. 2007: Aam Aadmi Bima Yojna
    Insurance cover to the head of the family of rural landless households in the country.
75. 2009: Rajiv Awas Yojna
    To make India slum free in 5 years

Schemes merged:

1. National Food for Work program was merged with NREGA
2. Sampoorna Grameen Rojgar Yojna merged with NREGA
3. Intesified Jawhar Rozgar Yojna 1993 was merged with Employment Assurance Scheme 1996 which was later merged with Sampoorna grameen Rozgar Yojna 2001.
4. IRDP , TRYSEM, DWCRA, Million Wells Scheme, SITRA & Ganga kalian Yojna merged with Swaran jayanti Gram Swarojgar Yojna.
5. Rural Landless Employment Guarantee programme merged with Jawahar Rojgar Yojna which was replaced by Jawahar Gram Samridhi Yojna (1999) and Jawahar Gram Samridhi Yojna was merged with Sampoorna grameen Rojgar Yojna (2001)

India set to join talks for world’s largest trade bloc

India is set to join talks for creating the world's largest trade bloc, the Regional Comprehensive Economic Partnership or RCEP, comprising Asean members and three manufacturing giants — China , Japan and South Korea — after a committee headed by Prime Minister Manmohan Singh endorsed the move.

The 16 members who will launch talks in Phnom Penh later this month account for over a quarter of the world economy.

Trade & Economic Relations Committee (TERC) signals the government's intent to drive down import duties further in the coming years, a proposal that may not get too much support from the domestic industry.

In return, the government is hoping to get a sweeter deal for Indian nurses, teachers and auditors who want to work in any of the 16 initial members of the proposed RCEP, which will also have Australia and New Zealand. Of course, this will come with the promise of allowing overseas companies easier access by giving them more flexibility in FDI rules.

The biggest concern, however , is the China factor as the Indian government has so far hesitated in entering into any sort of a trade arrangement with Beijing, fearing that the market would be flooded with cheap imports and make the trade deficit look even grimmer . But TERC is learnt to have taken the view that it would be imprudent to ignore RCEP as India was taking a 'Look East' view of the world.

Besides, it is seen as the trading region of the future, with trade expanding rapidly. The fear in government circles is that entering the bloc late would entail higher commitments , including a steeper reduction in import tariffs.

RCEP is seen as a counter to the Trans-Pacific Partnership, which had Asean members such as Singapore and Malaysia apart from New Zealand as a founding member, but the agenda is now largely driven by the US, backed by Canada and Mexico.

Gujarat No. 1 in investment proposals

Gujarat has emerged as one of the top investment destinations in the country attracting proposals of more than Rs 14.8 lakh crore as on June 2012, an industry body study has said. "Clocking a share of 10.6 per cent in total investments of over Rs 140 lakh crore across the country (till June 2012), Gujarat has emerged as the most lucrative investment destination attracting highest number of proposals, worth over Rs 14.8 lakh crore," Assocham said in its study. Of the total outstanding investments in Gujarat worth over Rs 14.8 lakh crore, investments in private sector accounts for over Rs 10.3 lakh crore and public sector registered proposals worth Rs 4.5 lakh crore, it added.
The investments were attracted in sectors like finance, manufacturing, real estate and irrigation, the survey said. "The flow of private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations," Assocham General Secretary D S Rawat said. Besides, bureaucratic efficiency, infrastructure facilities and ease of land acquisition influence the flow of these investments, he added. The survey added that of the Rs 140 lakh crore total outstanding investments, private sector accounts for over 59 per cent at Rs 82.9 lakh crore till June 2012.
After Gujarat, Maharashtra stood second in attracting investment proposals worth Rs 14.3 lakh crore followed by Andhra Pradesh (Rs 12.3 lakh crore), Odisha (Rs 11.8 lakh crore) and Karnataka (Rs 10.4 lakh crore), it said.

Indian government debt jumped 3.6%

The government's debt in the July-September period in this financial year grew by 3.6 per cent to Rs 39,00,386 crore from Rs 37,63,264 crore in the previous quarter.
The total public debt (excluding liabilities that are not classified under public debt) of the Government had grown by 5.2 per cent in April-June quarter. "This represented a Quarter-on-Quarter (QoQ) increase of 3.6 per cent (provisional) compared with an increase of 5.2 per cent in the previous quarter (Q1 of FY13)," the Quarterly Report on Debt Management released by the Finance Ministry said. Internal debt in July-September quarter constituted 90.4 per cent of public debt, compared with 89.6 per cent at the end of June. The internal debt at Rs 35,27,405 crore constituted 34.7 per cent of GDP. It was 33.2 per cent at end-June 2012.
During the second quarter of the fiscal, liquidity conditions in the economy remained generally tight, though the deficit was within the Reserve Bank's stated comfort zone of about one per cent of Net Demand and Time Liabilities (NDTL) of scheduled commercial banks.
The net amount provided under Liquidity Adjustment Facility (LAF) operations, the report added, witnessed some oscillations during the quarter. It further said that the cash position of the government during the second quarter was generally comfortable and remained in positive territory for a major part of the period
under review. Gross tax collections during the April-August at 26.4 per cent of budget estimates were higher than 25.8 per cent a year ago.
In the direct taxes, collections from corporation tax and personal income tax at Rs 64,900 crore and Rs 58,249 crore, respectively, showed healthy growth rates of 25.8 per cent and 30.3 per cent against 13.9 per cent growth rate budgeted for each during FY13. Among the major indirect taxes, growth in collections
from customs and excise duties decelerated to 3.4 per cent and 10.8 per cent, respectively, against budgeted growth rates of 22.0 per cent and 29.1 per cent. However, service tax collections increased by 33.5 per
cent during April-August 2012-13 as against BE growth rate of 30.5 per cent.

PM constitutes National Committee on Direct Cash Transfers

The Prime Minister has constituted a coordination committee called the National Committee on Direct Cash Transfers, as a mechanism to coordinate action for the introduction of direct cash transfers to individuals under the various government schemes and programmes.

            The National Committee chaired by the Prime Minister will have as its members eleven Cabinet Ministers, two Ministers of State with independent charge, the Deputy Chairman Planning Commission, the Chairman UIDAI, the Cabinet Secretary with the Principal Secretary to the PM as the convenor. The Prime Minister may invite any other Minister/Officer/Expert to any meeting of the Committee.

The National Committee on Direct Cash Transfers would engage in the following tasks:

a) Provide an overarching vision and direction to enable direct cash transfers of benefits under various government schemes and programmes to individuals, leveraging the investments being made in the Aadhaar Project, financial inclusion and other initiatives of the Government, with the objective of enhancing efficiency, transparency and accountability.

b) Determine broad policy objectives and strategies for direct cash transfers.

c) Identify Government programmes and schemes for which direct cash transfers to individuals can be adopted and suggest the extent and scope of direct cash transfers in each case.

d) Coordinate the activities of various Ministries/ Departments/ Agencies involved in enabling direct cash transfers and ensure timely, coordinated action to ensure speedy rollout of direct cash transfers across the country.

e) Specify timelines for the rollout of direct cash transfers.

f) Review the progress of implementation of direct cash transfers and provide guidance for mid-course corrections.

g) Any other related matter.

 The National Committee on Cash Transfers will be assisted by an Executive Committee on Direct Cash Transfers chaired by the Principal Secretary to PM and the Secretaries of the concerned Ministries and the DG UIDAI. The Secretary Planning Commission will be the convenor.

The Executive Committee on Direct Cash Transfers would engage in the following tasks:

a) Identify and propose for the consideration of the National Committee on Cash Transfers such Government programmes and schemes for which direct cash transfers to individuals can be adopted and suggest the extent and scope of direct cash transfers in each case.

b) Ensure the preparation of and approve strategies and action plans for the speedy rollout of direct cash transfers in areas agreed to and in line with the timelines laid down by the National Committee on Cash Transfers.

c) Coordinate the activities of various Ministries/ Departments / Agencies involved in enabling direct cash transfers to ensure that the architecture and framework for direct cash transfers is in place for rolling out direct cash transfers across the country.

d) Review and monitor the rollout of direct cash transfers and undertake mid-course corrections as and when necessary.

e) Any other related matter entrusted by the National Committee on Cash Transfers or relating to direct cash transfers.

            The Chairman may invite any other Officer/Expert to any meeting of the Executive Committee as may be necessary. The National Committee and the Executive Committee would be serviced by the Planning Commission, which may obtain assistance as required from any Ministry/Department/Agency of the Government in this task. The Planning Commission will designate an officer of the rank of Joint Secretary in the Planning Commission to coordinate and service the work of the National Committee and Executive Committee.

            In order to finalise the operational and implementation details relating to the design and implementation of the direct cash transfer system, and for ensuring a smooth roll-out of direct cash transfers in an orderly and timely fashion, Mission Mode Committees will be constituted.

These will be:

a) Technology Committee to focus on the  technology,  payment architecture and IT issues.

b) Financial Inclusion Committee to focus on ensuring universal access to banking and ensuring complete financial inclusion.

c) Implementation Committees on Electronic Transfer of Benefits at the Ministry/ Department level to work out the details of cash transfers for each department such as data bases, direct cash transfer rules and control and audit mechanisms.

The notifications for these three committees will be issued in due course.

The composition of the National Committee on Direct Cash Transfers is as follows:

1.      Prime Minister                                              -        Chairperson

2.      Finance Minister

3.      Minister of Communications & IT

4.      Minister of Rural Development

5.      Minister of Social Justice & Empowerment

6.      Minister of Human Resource Development

7.      Minister of Tribal Affairs

8.      Minister of Minority Affairs

9.      Minister of Health & Family Welfare

10.    Minister of Labour & Employment

11.    Minister of Petroleum & Natural Gas

12.    Minister of Chemicals & Fertilizers

13.    Deputy Chairman, Planning Commission

14.    Minister of State (i/c) of Food & Public Distribution

15.    Minister of State (i/c) of Women & Child Development

16.    Chairman, UIDAI

17.    Cabinet Secretary

18.    Principal Secretary to PM                                -        Convenor

Approval of National Policy on Electronics 2012

The Union Cabinet on October 25 approved the National Policy on Electronics 2012. The draft National Policy on Electronics was released for public consultation and it has now been finalized based on comments from various stakeholders.

India is one of the fastest growing markets of electronics in the world. There is potential to develop the Electronic System and Design and Manufacturing (ESDM) sector to meet our domestic demand as well as to use the capabilities so created to successfully export ESDM products from the country. The National Policy on Electronics aims to address the issue with the explicit goal of transforming India into a premier ESDM hub.

The strategies include setting up of a National Electronics Mission with industry participation and renaming the Department of Information Technology as Department of Electronics and Information Technology (Deity). The Department has since been renamed on February 26, 2012.

The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. It will foster the manufacturing of indigenously designed and manufactured chips creating a more cyber secure ecosystem in the country. It will enable India to tap the great economic potential that this knowledge sector offers. The increased development and manufacturing in the sector will lead to greater economic growth through more manufacturing and consequently greater employment in the sector.

The Policy envisages that a turnover of USD 400 billion will create an employment for two million people.

ESDM is of strategic importance as well. Not only in internal security and defence, the pervasive deployment of electronics in civilian domains such as telecom, power, railways, civil aviation, etc. can have serious consequences of disruption of service. This renders tremendous strategic importance to the sector. The country, therefore, cannot be totally dependent on imported electronic components and products.

The key objectives of the Policy are:

(i) To create an eco-system for a globally competitive Electronic System Design and Manufacturing (ESDM) sector in the country to achieve a turnover of about USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million people at various levels.

(ii) To build on the emerging chip design and embedded software industry to achieve global leadership in Very Large Scale Integration (VLSI), chip design and other frontier technical areas and to achieve a turnover of USD 55 billion by 2020.

(iii) To build a strong supply chain of raw materials, parts and electronic components to raise the indigenous availability of these inputs from the present 20-25 per cent to over 60 per cent by 2020.

(iv) To increase the export in ESDM sector from USD 5.5 billion to USD 80 billion by 2020.

(v) To significantly enhance availability of skilled manpower in the ESDM sector. Special focus for augmenting postgraduate education and to produce about 2500 PhDs annually by 2020.

(vi) To create an institutional mechanism for developing and mandating standards and certification for electronic products and services to strengthen quality assessment infrastructure nationwide.

(vii) To develop an appropriate security ecosystem in ESDM.

(viii) To create long-term partnerships between ESDM and strategic and core infrastructure sectors - Defence, Atomic Energy, Space, Railways, Power, Telecommunications, etc.

(ix) To become a global leader in creating Intellectual Property (IP) in the ESDM sector by increasing fund flow for R&D, seed capital and venture capital for start-ups in the ESDM and nanoelectronics sectors.

(x) To develop core competencies in strategic and core infrastructure sectors like telecommunications, automotive, avionics, industrial, medical, solar, Information and Broadcasting, Railways, etc through use of ESDM in these sectors.

(xi) To use technology to develop electronic products catering to domestic needs, including rural needs and conditions, as well as international needs at affordable price points.

(xii) To become a global leader in the Electronic Manufacturing Services (EMS) segment by promoting progressive higher value addition in manufacturing and product development.

(xiii) To expedite adoption of best practices in e-waste management.

(xiv) To source, stockpile and promote indigenous exploration and mining of rare earth metals required for manufacture of electronic components.

To achieve these objectives, the policy proposes the following strategies:

(i) Creating eco-system for globally competitive ESDM sector: The strategies include provision of fiscal incentives for investment, setting up of electronic manufacturing clusters, preferential market access to domestically manufactured electronic products, setting up of semiconductor wafer fabrication facilities, industry friendly and stable tax regime. Based on Cabinet approval, a high level Empowered committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities. Based on another Cabinet approval a policy for providing preference to domestically manufactured electronic goods has been announced. Separate proposals have also been considered by the Cabinet for approval of Modified Special Incentive Package for the ESDM Sector and for setting up of Electronics Manufacturing Clusters (EMCs).

(ii) Promotion of Exports: The strategies include aggressive marketing of India as an investment destination and providing incentives for export,

(iii) Human Resource Development: The strategies include involvement of private sector, universities and institutions of learning for scaling up of requisite capacities at all levels for the projected manpower demand. A specialized Institute for semiconductor chip design is also proposed.

(iv) Developing and mandating standards to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards which conform to international standards.

(v) Cyber security: To create a complete secure cyber eco-system in the country, through suitable design and development of indigenous appropriate products through frontier technology/product oriented research, testing and validation of security of products.

(vi) Strategic electronics: The strategies include creating long-term partnerships between domestic ESDM industry and strategic sectors for sourcing products domestically and providing Defense Offset obligations for electronic procurements through ESDM products.

(vii) Creating ecosystem for vibrant innovation and R&D in the ESDM sector including nanoelectronics. The strategy includes creation of an Electronic Development Fund.

(viii) Electronics in other sectors: The strategy includes supporting and : developing expertise in the electronics in the following sectors of economy: automotive, avionics, Light Emitting Diodes (LEDs), Industrial, medical, solar photovoltaics, Information and Broadcasting, Telecommunications, Railways, Intelligent Transport Systems, and Games and Toys.

(ix) Handling e-waste: The strategy includes various initiatives to facilitate environment friendly e-waste handling policies.

Background:

The Electronics industry reported at USD 1.75 trillion is the largest and fastest growing manufacturing industry in the world. It is expected to reach USD 2.4 trillion by 2020. The demand in the Indian market was USD 45 billion in 2008-09 and is expected to reach USD 400 billion by 2020. Domestic demand is expected to be driven by growth in income levels leading to higher off-take of electronics products, automation demands of corporate sector and the government`s focus on e-governance. The domestic production in 2008-09 was about USD 20 billion. However, the actual value-addition in the domestically produced electronic product is very low, ranging between 5 to 10 percent in most cases. At the current rate of growth, domestic production can cater to a demand of USD 100 billion in 2020 as against a demand of USD 400 billion and the rest would have to be met by imports. This aggregates to a demand supply gap of nearly USD 300 billion by 2020. Unless the situation is corrected, it is likely that by 2020, electronics import may far exceed oil imports. This fact goes unnoticed because electronics, as a "meta resource" forms a significant part of all machines and equipment imported, which are classified in their final sectoral forms, for example, automobiles, aviation, health equipment, media and broadcasting, defence armaments, etc.

Electronics is characterized by high velocity of technological change. Consequently the life cycle of products is declining. As a result, the value of design and development in the product has increased quite significantly. Given India`s growing strength in chip design and embedded software, the increasing importance of design in product development has potential to make India a favoured destination for ESDM.

Electronic components, which are the basis of an electronic product, are low volume-low weight, cheap and easy to transport across the globe. Moreover, under the Information Technology Agreement-1 (ITA-1) of the World Trade Organization (WTO), which came into force in 1997, a large number of electronic components and products are bound with zero tariffs making trade unrestricted across international borders. Under the Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with various countries, the import of electronics hardware from these countries is allowed either at zero duty or at a duty which is lower than the normal duty rate.

Backward Regions Grant Fund (BRGF)

The Cabinet Committee on Economic Affairs on October 25 approved the proposal for :

(i) continuing the Special Plan for Bihar in 2012-13 with an allocation of Rs.1500 crore, based on the enhanced level of cost of Rs.9985.54 crore of all existing projects, revised cost of existing projects, and the cost of new projects, if any, that may be approved by the Empowered Committee,

(ii) continuing the Special Plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Odisha in 2012-13 with an allocation of Rs.250 crore, and

(iii) continuing the special package for implementing drought mitigation strategies in Bundelkhand region of Uttar Pradesh and Madhya Pradesh in 2012-13 with an Additional Central Assistance of Rs.1400 crore.

The Backward Regions Grant Fund (BRGF), which aims to catalyze development in backward areas, was approved by the CCEA in August, 2006. In its present form, the BRGF has two components, namely, District Component covering 272 backward districts in 27 States (including 22 additional districts covered in 2012-13) and State Component which includes Special Plan for Bihar, Special Plan for the KBK districts of Odisha, Special Plan for West Bengal (covered in 2011-12), Integrated Action Plan (IAP) for Selected Tribal and Backward Districts (covered in 2010-11) and Bundelkhand Package (covered in 2009-10).

The implementation of the programmes is being done by the State Governments. The aim of the programme is to accelerate socio-economic development in the States concerned.

Through the continuation of the Special Plan for Bihar, Special Plan for the KBK districts of Odisha and the Bundelkhand package in 2012-13, accelerated socio-economic development of backward areas covered under the programmes is expected to take place.

The backward areas of the States covered under the State Component of BRGF will benefit. All the 38 districts of Bihar, eight districts of the KBK region and 13 districts of Bundelkhand region are covered.

These programmes are continuing programmes and were under implementation during the Eleventh Five Year Plan.

Background:

The Twelfth Five Year Plan (2012-17) is being finalized. The possibility of restructuring the Backward Regions Grant Fund (BRGF) including the District Component as well as the State Component for the period 2013-14 to 2016-17 is being considered. Pending completion of this exercise, it is necessary to continue the BRGF (District Component and State Component) in its present form in 2012-13. The district component of BRGF as well as the special plan for West Bengal and the Integrated Action Plan (IAP) for selected tribal and backward districts under the State component of BRGF are already approved for continuation in 2012-13. Since the present approval to the special plan for Bihar, special plan for the KBK districts of Odisha and Bundelkhand package is valid only for the Eleventh Five Year Plan period i.e. 2011-12, it is now proposed to continue these programmes in 2012-13 in its present form.

BSE joins UN's Sustainable Stock Exchanges global initiative

The Bombay Stock Exchange Ltd (BSE) announced that it has joined the Sustainable Stock Exchanges (SSE) initiative.

The SSE initiative was launched by UN Secretary-General Ban Ki-moon and UNCTAD Secretary-General Supachai Panitchpakdi in 2009 at UN headquarters in New York City.

The BSE has been the first amongst global peers to join five other leading exchanges that have publicly committed to promoting sustainable investment practices.

Other exchanges include the Brazilian stock exchange BM & FBOVESPA, Egyptian Exchange (EGX), Istanbul Stock Exchange (ISE), Johannesburg Stock Exchange (JSE) and NASDAQ OMX made a commitment towards improving sustainability at the Sustainable Stock Exchanges 2012 global dialogue in Rio de Janeiro earlier this year.

BSE is also credited with launching the first-ever live Carbon Index BSE-GREENEX in India, earlier in 2012. The index measures the performances of companies in terms of carbon emissions.

"BSE is committed to working with investors, companies and regulators in playing a transformative role towards enhancing sustainability in Indian capital markets.

The initiative aims at exploring how exchanges can work together with stakeholders to enhance corporate transparency and performance on ESG (environmental, social and corporate governance) issues besides encouraging responsible long-term approaches to investment.

National Investment Board

The proposal of National Investment Board (NIB) is included in the 12^th Five Year Plan against the backdrop of sluggish growth that Indian economy has encountered in past few years. The NIB is proposed by ministry of finance to speed up the investment decisions in the government. NIB will act as a final body for clearing big investment proposals after which no ministry will have power to raise objections. It is proposed that NIB would be headed by the Prime Minister and have ministers from key ministries such as finance, and law and justice as its members.

The stated purpose of the NIB will be to take over the process of granting licenses, permissions and approvals whenever the competent authorities fail to act in time. This is intended to prevent adhocism emerging from autonomous functioning of ministries and to fix responsibility for inordinate delays in obtaining all the approvals / clearances required for implementation of the project.

The proposed functions of NIB

The following are the proposed functions of NIB: 

1. The Board would prescribe timelines for the different types of approvals from different line ministries
2. NIB would enforce the time lines for the decision making. If the line ministry or the department fails to take any decision within the prescribed time limit, then the issue would be escalated to NIB
3. NIB would identify the key projects that needs to be implemented  in the time frame
4.  NIB would facilitate mechanism for clearance of such projects that have been delayed
5. The NIB would have overriding powers and the decision of NIB would be binding on all the ministries
6. In the case of delays due to inter-ministry disputes, the decision of NIB would be final.

Need for NIB

The clearance for the big infrastructure projects in India is marred by red tapeism with multiple departments and agencies as stake holders in decision making. NIB is noteworthy against the milieu of the twisted web of permissions required for a project. For example, over 65 clearances/permissions are required for a thermal power project at three different levels - federal, state and local. There are 17 ministries at the central level that directly or indirectly look after infrastructure projects. They are road transport, railways, drinking water and sanitation, power, urban development, atomic energy, renewable energy, shipping, civil aviation, communication and IT, housing, water resources, rural development, environment, industry and commerce, heavy industry, coal and mines. With three more central institutions involved with clearances - Planning Commission, the finance ministry and the Prime Minister's Office (PMO) - we get 20 clearance gateways in New Delhi.

Arguments against NIB

Various ministers in the UPA II government in general and ministry of environment in particular have raised objections against the proposed structure of NIB and its overriding powers. The presence of Prime Minister in the NIB along with the key minister would make it no less than a Super Cabinet with overriding powers which would be capable enough to put pressure on ministries, department and agencies. There is also a chance that NIB could encroach upon or influence the decision making of state governments and local bodies, thus going against the principle of federalism.

Delhi based NGO Centre for Science and Environment (CSE) has categorically criticized the proposed structure of NIB by quoting the official data of government. According to CSE, NIB would destroy the existing environmental regulatory regime, which instead needed more reforms. CSE noted that project rejection rates for forest clearances were a mere 6% and that of environment clearance an almost negligible 0.1%.

The data released by CSE showed that 8,734 projects had been granted forest clearance and 1.98 lakh hectares of forest land diverted for development in the 11th Plan. The pace of forest land diversion had doubled during period. These clearances included 119 coal mining projects accorded forest clearance, diverting 31,500 hectares of forest land —the highest number cleared in any five year Plan since 1981.

Conclusion

The Development V/s Environment debate is the core issue involved with the proposed structure of NIB. It’s a  fact that red tapeism, bureaucratic apathy and corruption delays the infrastructure projects in India which are crucial for the higher growth trajectory. Nonetheless, a fast track mechanism of single window clearance for important infrastructure projects as envisaged by proposed NIB is vital step but it should not happen at the cost of environment.

Fast track clearance of big infrastructure projects would facilitate lop sided growth and would be ecologically unsustainable if the rights of local communities and the environmental regulations are ignored. Thus NIB should confine itself to mitigate red tapeism, arbitrary delays in decision making and enforcing timeline for the implementation.