A committee on natural resources allocation on 6 June 2011 called for the creation of a national coal market to ensure greater transparency in the allocation of the dry fuel and reduce the demand-supply mismatch.
The committee pointed out the drawbacks of the existing allocation mechanism for the dry fuel. The committee headed by former Finance Secretary Ashok Chawla recommended establishing a national coal market by creating a platform for commercial trading of coal by suppliers and buyers. The committee suggested use of experience gained through the e-auction platform to create a common one for all buyers and suppliers, including the captive allotees that are permitted to sell.
The committee highlighted that introduction of both captive mining and e-auctions were right steps taken in the direction of moving toward market-based allocation, the committee.
The committee is of the opinion that it should be mandatory for all sales in coal by the permitted entities to be registered with the platform and pay a standard fee, with details of price and mature of contract and grade of coal transacted.
The formation of a platform like the national coal market will facilitate a gradual evolution of established prices and terms of contract. The platform would ensure lower prices of the fossil fuel, since competition from imported coal would always act as an overall check.
The operation of the platform, which would be owned by Coal India and register all approved users, could be regulated by the proposed coal regulator.
According to the committee the current mismatch between supply and demand of coal in India can be attributed to lack of sufficient interfaces between consumers and producers.
Sunday, June 19, 2011
Food Ministry prepared New Food Security Bill in line with NAC’s Recommendation
The food ministry prepared a new food security bill, reworking an earlier version. In August 2010 the UPA government had dismissed the previous draft of the Food Bill after it was found wanting by the Congress leadership.
The Sonia Gandhi-led National Advisory Council, which oversees the government’s welfare agenda, had made number of recommendations, including keeping the country’s food distribution system open for all, regardless of poverty status. PM Manmohan Singh had asked his Economic Advisory Council (EAC), led by C Rangarajan, to find out the financial implications of the NAC’s recommendations.
Even though the EAC had suggested restricting cheap grains to priority households only, or those below the poverty line (BPL), the new bill provides for legal entitlement for both priority and general categories, which takes care of a key concern of the NAC. Under the new bill, entitlements for BPL households are wholly in line with the NAC’s draft food bill which was made public on 7 June 2011.
All BPL households would be given 7 kg per person or 35 kg per family of government-held grains at a subsidised price of R1 a kg for millet, wheat for R2 a kg and rice for R3 a kg.
Those above the poverty line would get 3 kg of grains per person, though the NAC had recommended 5 kg per person. These would be available at half the price at which the government buys from farmers, also called minimum support price (MSP).
The new bill also provides for cash benefits to meet enhanced food requirements of pregnant women, who would get Rs 1000 for first six months of pregnancy, and lactating women, as well as children up to 14 years.
The new requirements indicate that the government’s expenses on distributing cheap grains is expected to rise from Rs 83000 crore to Rs 1 lakh crore and it will have to procure 10 million more tonnes of foodgrains.
The Sonia Gandhi-led National Advisory Council, which oversees the government’s welfare agenda, had made number of recommendations, including keeping the country’s food distribution system open for all, regardless of poverty status. PM Manmohan Singh had asked his Economic Advisory Council (EAC), led by C Rangarajan, to find out the financial implications of the NAC’s recommendations.
Even though the EAC had suggested restricting cheap grains to priority households only, or those below the poverty line (BPL), the new bill provides for legal entitlement for both priority and general categories, which takes care of a key concern of the NAC. Under the new bill, entitlements for BPL households are wholly in line with the NAC’s draft food bill which was made public on 7 June 2011.
All BPL households would be given 7 kg per person or 35 kg per family of government-held grains at a subsidised price of R1 a kg for millet, wheat for R2 a kg and rice for R3 a kg.
Those above the poverty line would get 3 kg of grains per person, though the NAC had recommended 5 kg per person. These would be available at half the price at which the government buys from farmers, also called minimum support price (MSP).
The new bill also provides for cash benefits to meet enhanced food requirements of pregnant women, who would get Rs 1000 for first six months of pregnancy, and lactating women, as well as children up to 14 years.
The new requirements indicate that the government’s expenses on distributing cheap grains is expected to rise from Rs 83000 crore to Rs 1 lakh crore and it will have to procure 10 million more tonnes of foodgrains.
Friday, June 17, 2011
India likely to be largest economy by 2050
U.S. Assistant Secretary of State Robert O. Blake on June 17th said the future of Indian economy seems very bright and the country is likely to become the world’s third largest economy by 2030, and the largest by 2050.
He added, “The incredible growth of India’s economy has resulted in positive spill-over effect for the U.S. between 2002-2009, U.S. goods exports to India quadrupled, growing from $4.1 billion to more than $16.4 billion in 2009.”
“U.S. services exports to India more than tripled from $3.2 billion to $9.9 billion during the period,” he said.
Last year, U.S.-India trade in goods broke a record with U.S. exports increasing by 17 per cent and U.S. imports from India rising by 40 per cent, he said during a seminar, ‘West Bengal and Beyond: U.S.-India business links and prospects” in Kolkata.
“This surge of nearly 30 per cent to a high of $48.8 billion in goods trade moved India up two notches to become our 12th largest goods trading partner. This positive trend continues, with two-way trade up 19 per cent in the first quarter of 2011, over the same period last year,” he said.
Mr. Blake said U.S. trade with India was very much a two-way exchange with mutual benefits to both the countries.
“Robust two-way trade means citizens from Kolkata to Kansas will see the benefits of our trade agreement,” he said.
Mr. Blake added that India is also a growing source of foreign direct investment into the U.S. “The total stock of FDI from India stood at almost $5.5 billion at the end of 2009. It has grown at a compound annual growth rate of 35 per cent during 2004-2009, making India the seventh fastest-growing source of investment in U.S.”
Indian companies invest heavily in many U.S. industries such as energy and IT, he said, adding that “We expect their investments to increase.”
Mr. Blake added the Indian market offers tremendous opportunity to U.S. exporters of goods and services. “India has a market of 1.2 billion of world’s consumers,” he said.
He said U.S. companies wanted to provide the goods and services needed to upgrade and build India’s railroads, airports, power plants and fibre optic cables.
He added, “India will need to invest $143 billion in healthcare, $392 billion in transportation infrastructure and $1.25 trillion in energy production by 2030, to support its rapidly expanding population.”
Quoting a McKinsey report, he said in 2030, the country would have 68 different cities housing one million plus people each.
“India will have to construct as much as 900 million square metres of commercial and residential space each year to keep pace with growing demand,” he said.
Mr. Blake added that India’s military and civil aviation modernisations, priced at around $35 billion, are already slated for some of the world’s largest purchases in the next decade.
Wednesday, June 15, 2011
INDIA'S ECONOMIC REFORMS
The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty. The process of economic liberalization in India can be traced back to the late 1970s. However, the reform process began in earnest only in July 1991. It was only in 1991 that the Government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of Government.
The reforms of the last decade and a half have gone a long way in freeing the domestic economy from the control regime. An important feature of India's reform programme is that it has emphasized gradualism and evolutionary transition rather than rapid restructuring or "shock therapy". This approach was adopted since the reforms were introduced in June 1991 in the wake a balance of payments crisis that was certainly severe. However, it was not a prolonged crisis with a long period of non-performance.
The economic reforms initiated in 1991 introduced far-reaching measures, which changed the working and machinery of the economy. These changes were pertinent to the following:
- Dominance of the public sector in the industrial activity
- Discretionary controls on industrial investment and capacity expansion
- Trade and exchange controls
- Limited access to foreign investment
- Public ownership and regulation of the financial sector
The reforms have unlocked India's enormous growth potential and unleashed powerful entrepreneurial forces. Since 1991, successive governments, across political parties, have successfully carried forward the country's economic reform agenda.
Reforms in Industrial Policy
Industrial policy was restructured to a great extent and most of the central government industrial controls were dismantled. Massive deregulation of the industrial sector was done in order to bring in the element of competition and increase efficiency. Industrial licensing by the central government was almost abolished except for a few hazardous and environmentally sensitive industries. The list of industries reserved solely for the public sector -- which used to cover 18 industries, including iron and steel, heavy plant and machinery, telecommunications and telecom equipment, minerals, oil, mining, air transport services and electricity generation and distribution was drastically reduced to three: defense aircrafts and warships, atomic energy generation, and railway transport. Further, restrictions that existed on the import of foreign technology were withdrawn.
Reforms in Trade Policy
It was realized that the import substituting inward looking development policy was no longer suitable in the modern globalising world.
Before the reforms, trade policy was characterized by high tariffs and pervasive import restrictions. Imports of manufactured consumer goods were completely banned. For capital goods, raw materials and intermediates, certain lists of goods were freely importable, but for most items where domestic substitutes were being produced, imports were only possible with import licenses. The criteria for issue of licenses were non-transparent, delays were endemic and corruption unavoidable. The economic reforms sought to phase out import licensing and also to reduce import duties.
Import licensing was abolished relatively early for capital goods and intermediates which became freely importable in 1993, simultaneously with the switch to a flexible exchange rate regime. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were finally removed on April 1, 2001, almost exactly ten years after the reforms began, and that in part because of a ruling by a World Trade Organization dispute panel on a complaint brought by the United States.
Financial sector reforms
Financial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve requirements have been taken on this front. At the same time, the government has emphasized on stronger regulation aimed at strengthening prudential norms, transparency and supervision to mitigate the prospects of systemic risks. Today the Indian financial structure is inherently strong, functionally diverse, efficient and globally competitive. During the last fifteen years, the Indian financial system has been incrementally deregulated and exposed to international financial markets along with the introduction of new instruments and products.
Saturday, June 11, 2011
Knowledge about Mahatma Gandhi NREGA
1) When was the Mahatma Gandhi NREGA passed by the Indian Parliament?
a) 26th August 2004
b) 23rd August 2004
c) 23rd August 2005
d) 26th August 2005
Answer: (C)
2) When was the Mahatma Gandhi National Rural Employment Guarantee Act Notified?
a) 8th September 2005
b) 6th September 2005
c) 5th September 2005
d) 7th September 2005
Answer: (D)
3) Which state had passed an Employment Guarantee Act in 1976?
a) Rajasthan
b) Madhya Pradesh
c) Maharashtra
d) Gujarat
Answer: (C)
4) Is there a limit on the number of days of guaranteed employment over the year?
a) 100 days
b) upto 100 days
c) 200 days
d) 150 days
Answer: (B)
CENSUS TERMINOLOGY
Rural-Urban Areas:
The data in the table on Final Population Totals are presented separately for rural and urban areas. The unit of classification in this regard is 'town' for urban areas and 'village' for rural areas. In the Census of India 2001, the definition of urban area adopted is as follows: (a) All statutory places with a municipality, corporation, cantonment board or notified town area committee, etc. (b) A place satisfying the following three criteria simultaneously:
The data in the table on Final Population Totals are presented separately for rural and urban areas. The unit of classification in this regard is 'town' for urban areas and 'village' for rural areas. In the Census of India 2001, the definition of urban area adopted is as follows: (a) All statutory places with a municipality, corporation, cantonment board or notified town area committee, etc. (b) A place satisfying the following three criteria simultaneously:
i) a minimum population of 5,000;
ii) at least 75 per cent of male working population engaged in non-agricultural pursuits; and
iii) a density of population of at least 400 per sq. km. (1,000 per sq. mile).
For identification of places which would qualify to be classified as 'urban' all villages, which, as per the 1991 Census had a population of 4,000 and above, a population density of 400 persons per sq. km. and having at least 75 per cent of male working population engaged in non-agricultural activity were considered. To work out the proportion of male working population referred to above against b)(ii), the data relating to main workers were taken into account.
An Urban Agglomeration is a continuous urban spread constituting a town and its adjoining urban outgrowths (OGs) or two or more physically contiguous towns together and any adjoining urban outgrowths of such towns. Examples of OGs are railway colonies, university campuses, port areas, etc., that may come up near a city or statutory town outside its statutory limits but within the revenue limits of a village or villages contiguous to the town or city. Each such individual area by itself may not satisfy the minimum population limit to qualify it to be treated as an independent urban unit but may deserve to be clubbed with the town as a continuous urban spread.
For the purpose of delineation of Urban Agglomerations during Census of India 2001, following criteria are taken as pre-requisites: (a) The core town or at least one of the constituent towns of an urban agglomeration should necessarily be a statutory town; and (b) The total population of all the constituents (i.e. towns and outgrowths) of an Urban Agglomeration should not be less than 20,000 (as per the 1991 Census). With these two basic criteria having been met, the following are the possible different situations in which Urban Agglomerations would be constituted: (i) a city or town with one or more contiguous outgrowths; (ii) two or more adjoining towns with their outgrowths; and (iii) a city and one or more adjoining towns with their outgrowths all of which form a continuous spread.
City
Towns with population of 1,00,000 and above are called cities
Household
A 'household' is usually a group of persons who normally live together and take their meals from a common kitchen unless the exigencies of work prevent any of them from doing so. Persons in a household may be related or unrelated or a mix of both. However, if a group of unrelated persons live in a census house but do not take their meals from the common kitchen, then they are not constituent of a common household. Each such person was to be treated as a separate household. The important link in finding out whether it was a household or not was a common kitchen. There may be one member households, two member households or multi-member households.A household with at least one Scheduled Caste member is treated as Scheduled Caste Household. Similarly, a household having at least one Scheduled Tribe member is treated as a Scheduled Tribe household.
Institutional Household
A group of unrelated persons who live in an institution and take their meals from a common kitchen is called an Institutional Household. Examples of Institutional Households are boarding houses, messes, hostels, hotels, rescue homes, jails, ashrams, orphanages, etc. To make the definition more clearly perceptible to the enumerators at the Census 2001, it was specifically mentioned that this category of households would cover only those households where a group of unrelated persons live in an institution and share a common kitchen.
Houseless Households
Households who do not live in buildings or census houses but live in the open on roadside, pavements, in hume pipes, under fly-overs and staircases, or in the open in places of worship, mandaps, railway platforms, etc. are treated as Houseless households.
Work
Work is defined as participation in any economically productive activity with or without compensation, wages or profit. Such participation may be physical and/or mental in nature. Work involves not only actual work but also includes effective supervision and direction of work. It even includes part time help or unpaid work on farm, family enterprise or in any other economic activity. All persons engaged in 'work' as defined above are workers. Persons who are engaged in cultivation or milk production even solely for domestic consumption are also treated as workers.
An Urban Agglomeration is a continuous urban spread constituting a town and its adjoining urban outgrowths (OGs) or two or more physically contiguous towns together and any adjoining urban outgrowths of such towns. Examples of OGs are railway colonies, university campuses, port areas, etc., that may come up near a city or statutory town outside its statutory limits but within the revenue limits of a village or villages contiguous to the town or city. Each such individual area by itself may not satisfy the minimum population limit to qualify it to be treated as an independent urban unit but may deserve to be clubbed with the town as a continuous urban spread.
For the purpose of delineation of Urban Agglomerations during Census of India 2001, following criteria are taken as pre-requisites: (a) The core town or at least one of the constituent towns of an urban agglomeration should necessarily be a statutory town; and (b) The total population of all the constituents (i.e. towns and outgrowths) of an Urban Agglomeration should not be less than 20,000 (as per the 1991 Census). With these two basic criteria having been met, the following are the possible different situations in which Urban Agglomerations would be constituted: (i) a city or town with one or more contiguous outgrowths; (ii) two or more adjoining towns with their outgrowths; and (iii) a city and one or more adjoining towns with their outgrowths all of which form a continuous spread.
City
Towns with population of 1,00,000 and above are called cities
Household
A 'household' is usually a group of persons who normally live together and take their meals from a common kitchen unless the exigencies of work prevent any of them from doing so. Persons in a household may be related or unrelated or a mix of both. However, if a group of unrelated persons live in a census house but do not take their meals from the common kitchen, then they are not constituent of a common household. Each such person was to be treated as a separate household. The important link in finding out whether it was a household or not was a common kitchen. There may be one member households, two member households or multi-member households.A household with at least one Scheduled Caste member is treated as Scheduled Caste Household. Similarly, a household having at least one Scheduled Tribe member is treated as a Scheduled Tribe household.
A group of unrelated persons who live in an institution and take their meals from a common kitchen is called an Institutional Household. Examples of Institutional Households are boarding houses, messes, hostels, hotels, rescue homes, jails, ashrams, orphanages, etc. To make the definition more clearly perceptible to the enumerators at the Census 2001, it was specifically mentioned that this category of households would cover only those households where a group of unrelated persons live in an institution and share a common kitchen.
Households who do not live in buildings or census houses but live in the open on roadside, pavements, in hume pipes, under fly-overs and staircases, or in the open in places of worship, mandaps, railway platforms, etc. are treated as Houseless households.
Work
Work is defined as participation in any economically productive activity with or without compensation, wages or profit. Such participation may be physical and/or mental in nature. Work involves not only actual work but also includes effective supervision and direction of work. It even includes part time help or unpaid work on farm, family enterprise or in any other economic activity. All persons engaged in 'work' as defined above are workers. Persons who are engaged in cultivation or milk production even solely for domestic consumption are also treated as workers.
Reference period for determining a person as worker and non-worker is one year preceding the date of enumeration.
Main Workers
Those workers who had worked for the major part of the reference period (i.e. 6 months or more) are termed as Main Workers.
Marginal Workers
Those workers who had not worked for the major part of the reference period (i.e. less than 6 months) are termed as Marginal Workers.
Cultivator
For purposes of the census a person is classified as cultivator if he or she is engaged in cultivation of land owned or held from Government or held from private persons or institutions for payment in money, kind or share. Cultivation includes effective supervision or direction in cultivation. A person who has given out her/his land to another person or persons or institution(s) for cultivation for money, kind or share of crop and who does not even supervise or direct cultivation of land, is not treated as cultivator. Similarly, a person working on another person's land for wages in cash or kind or a combination of both (agricultural labourer) is not treated as cultivator.
Cultivation involves ploughing, sowing, harvesting and production of cereals and millet crops such as wheat, paddy, jowar, bajra, ragi, etc., and other crops such as sugarcane, tobacco, ground-nuts, tapioca, etc., and pulses, raw jute and kindred fibre crop, cotton, cinchona and other medicinal plants, fruit growing, vegetable growing or keeping orchards or groves, etc. Cultivation does not include the following plantation crops - tea, coffee, rubber, coconut and betel-nuts (areca).
Agricultural Labourers
A person who works on another person's land for wages in money or kind or share is regarded as an agricultural labourer. She or he has no risk in the cultivation, but merely works on another person's land for wages. An agricultural labourer has no right of lease or contract on land on which She/he works.
Household Industry Workers
Household Industry is defined as an industry conducted by one or more members of the household at home or within the village in rural areas and only within the precincts of the house where the household lives in urban areas. The larger proportion of workers in the household industry consists of members of the household. The industry is not run on the scale of a registered factory which would qualify or has to be registered under the Indian Factories Act.
Those workers who had worked for the major part of the reference period (i.e. 6 months or more) are termed as Main Workers.
Those workers who had not worked for the major part of the reference period (i.e. less than 6 months) are termed as Marginal Workers.
For purposes of the census a person is classified as cultivator if he or she is engaged in cultivation of land owned or held from Government or held from private persons or institutions for payment in money, kind or share. Cultivation includes effective supervision or direction in cultivation. A person who has given out her/his land to another person or persons or institution(s) for cultivation for money, kind or share of crop and who does not even supervise or direct cultivation of land, is not treated as cultivator. Similarly, a person working on another person's land for wages in cash or kind or a combination of both (agricultural labourer) is not treated as cultivator.
Cultivation involves ploughing, sowing, harvesting and production of cereals and millet crops such as wheat, paddy, jowar, bajra, ragi, etc., and other crops such as sugarcane, tobacco, ground-nuts, tapioca, etc., and pulses, raw jute and kindred fibre crop, cotton, cinchona and other medicinal plants, fruit growing, vegetable growing or keeping orchards or groves, etc. Cultivation does not include the following plantation crops - tea, coffee, rubber, coconut and betel-nuts (areca).
A person who works on another person's land for wages in money or kind or share is regarded as an agricultural labourer. She or he has no risk in the cultivation, but merely works on another person's land for wages. An agricultural labourer has no right of lease or contract on land on which She/he works.
Household Industry is defined as an industry conducted by one or more members of the household at home or within the village in rural areas and only within the precincts of the house where the household lives in urban areas. The larger proportion of workers in the household industry consists of members of the household. The industry is not run on the scale of a registered factory which would qualify or has to be registered under the Indian Factories Act.
The main criterion of a Household industry even in urban areas is the participation of one or more members of a household. Even if the industry is not actually located at home in rural areas there is a greater possibility of the members of the household participating even if it is located anywhere within the village limits. In the urban areas, where organized industry takes greater prominence, the Household Industry is confined to the precincts of the house where the participants live. In urban areas, even if the members of the household run an industry by themselves but at a place away from the precincts of their home, it is not considered as a Household Industry. It should be located within the precincts of the house where the members live in the case of urban areas.
Household Industry relates to production, processing, servicing, repairing or making and selling (but not merely selling) of goods. It does not include professions such as a Pleader, Doctor, Musician, Dancer, Waterman, Astrologer, Dhobi, Barber, etc., or merely trade or business, even if such professions, trade or services are run at home by members of the household. Some of the typical industries that can be conducted on a household industry basis are: Foodstuffs : such as production of floor, milking or dehusking of paddy, grinding of herbs, production of pickles, preservation of meat etc. Beverages: such as manufacture of country liquor, ice cream, soda water etc., Tobacco Products : such as bidi, cigars, Textile cotton, Jute, Wool or Silk, Manufacture of Wood and Wood Products, Paper and Paper Products, Leather and Leather Products, Petroleum and Coal Products : such as making foot wear from torn tyres and other rubber footwear, Chemical and Chemical Products :such as manufacture of toys, paints, colours, matches, fireworks, perfumes, ink etc., Service and Repairing of Transport Equipments : such as cycle, rickshaw, boat or animal driven carts etc.
Household Industry relates to production, processing, servicing, repairing or making and selling (but not merely selling) of goods. It does not include professions such as a Pleader, Doctor, Musician, Dancer, Waterman, Astrologer, Dhobi, Barber, etc., or merely trade or business, even if such professions, trade or services are run at home by members of the household. Some of the typical industries that can be conducted on a household industry basis are: Foodstuffs : such as production of floor, milking or dehusking of paddy, grinding of herbs, production of pickles, preservation of meat etc. Beverages: such as manufacture of country liquor, ice cream, soda water etc., Tobacco Products : such as bidi, cigars, Textile cotton, Jute, Wool or Silk, Manufacture of Wood and Wood Products, Paper and Paper Products, Leather and Leather Products, Petroleum and Coal Products : such as making foot wear from torn tyres and other rubber footwear, Chemical and Chemical Products :such as manufacture of toys, paints, colours, matches, fireworks, perfumes, ink etc., Service and Repairing of Transport Equipments : such as cycle, rickshaw, boat or animal driven carts etc.
Other Workers
All workers, i.e., those who have been engaged in some economic activity during the last one year, but are not cultivators or agricultural labourers or in Household Industry, are 'Other Workers(OW)'. The type of workers that come under this category of 'OW' include all government servants, municipal employees, teachers, factory workers, plantation workers, those engaged in trade, commerce, business, transport banking, mining, construction, political or social work, priests, entertainment artists, etc. In effect, all those workers other than cultivators or agricultural labourers or household industry workers, are 'Other Workers'.
All workers, i.e., those who have been engaged in some economic activity during the last one year, but are not cultivators or agricultural labourers or in Household Industry, are 'Other Workers(OW)'. The type of workers that come under this category of 'OW' include all government servants, municipal employees, teachers, factory workers, plantation workers, those engaged in trade, commerce, business, transport banking, mining, construction, political or social work, priests, entertainment artists, etc. In effect, all those workers other than cultivators or agricultural labourers or household industry workers, are 'Other Workers'.
Non Workers
A person who did not at all work during the reference period was treated as non-worker. The non-workers broadly constitute Students who did not participate in any economic activity paid or unpaid, household duties who were attending to daily household chores like cooking, cleaning utensils, looking after children, fetching water etc. and are not even helping in the unpaid work in the family form or cultivation or milching, dependant such as infants or very elderly people not included in the category of worker, pensioners those who are drawing pension after retirement and are not engaged in any economic activity. Beggars, vagrants, prostitutes and persons having unidentified source of income and with unspecified sources of subsistence and not engaged in any economically productive work during the reference period. Others, this category includes all Non-workers who may not come under the above categories such as rentiers, persons living on remittances, agricultural or non-agricultural royalty, convicts in jails or inmates of penal, mental or charitable institutions doing no paid or unpaid work and persons who are seeking/available for work.
A person who did not at all work during the reference period was treated as non-worker. The non-workers broadly constitute Students who did not participate in any economic activity paid or unpaid, household duties who were attending to daily household chores like cooking, cleaning utensils, looking after children, fetching water etc. and are not even helping in the unpaid work in the family form or cultivation or milching, dependant such as infants or very elderly people not included in the category of worker, pensioners those who are drawing pension after retirement and are not engaged in any economic activity. Beggars, vagrants, prostitutes and persons having unidentified source of income and with unspecified sources of subsistence and not engaged in any economically productive work during the reference period. Others, this category includes all Non-workers who may not come under the above categories such as rentiers, persons living on remittances, agricultural or non-agricultural royalty, convicts in jails or inmates of penal, mental or charitable institutions doing no paid or unpaid work and persons who are seeking/available for work.
Migration
Internal Migration
It incldes any movement within the political boundaries of a nation which results in a change of usual place of residence. It may consist of the crossing of a village or town boundary as a minimum condition for qualifying the movement as internal migration. Thus, the concept of internal migration involves implicitly an imposition of boundary lines which must be crossed before a movement is counted as internal migration.
Migrant
Migrant is usually defined as a person who has moved from one politically defined area to another similar area. In Indian context, these areas are generally a village in rural and a town in urban. Thus a person who moves out from one village or town to another village or town is termed as a migrant provided his/her movement is not of purely temporary nature on account of casual leave, visits, tours, etc.
Non- Migrants (Immobiles)
People, who are seen living their entire life-time and die in the same village/town in which they were born, are defined as Immobiles or non-migrants.
Birth Place Migrant
If at the time of Census enumeration, there is a change in the usual place of residence of an individual with reference to his/her birth place, he/she is defined as a migrant in accordance with ‘birth place’ concept.
Last Residence Migrant
If at the time of Census enumeration, a change in the usual place of residence of an individual is noted with reference to his/her previous usual residence, he/she is termed as a migrant in accordance with ‘last residence’ concept.
In-migrant
A person, who crosses the boundaries of a village/town for the purpose of residing at the place of enumeration, is an in-migrant.
Out-migrant
If a person moves out from the place of enumeration (village/town) to another politically defined area (village/town) for usual residence, he or she is termed as an out-migrant.
Intra-district Migrant
When a person moves out from his place of usual residence or birth to another politically defined area (village/town), which is within the district of enumeration, he/she is termed as an intra-district migrant.
Inter-district Migrant
A person who is in the course of migration crosses the boundary of the district of enumeration but remains within the State of enumeration, is termed as an inter-district migrant.
Intra-state Migrant
When a person crosses the boundary of his/her village/town for usual residence elsewhere within the State of enumeration, the person concerned is treated as an intra-State migrant. Thus intra-district and inter-district migrants together constitute the intra-State migrants.
Inter-State migrant
If the place of enumeration of an individual differs from the place of birth or last residence and these lie in two different States, the person is treated accordingly as an inter-State migrant with regard to birth place or last residence concept.
Life-time In-Migration
It denotes the total number of persons enumerated in a given area at a particular Census who were born outside the area of enumeration but within the national boundaries.
Life-time Out-Migration
It gives the total number of persons born in a given area but now enumerated outside the area within the national boundaries at the time of particular Census.
Life-time Net-Migration
The difference between life-time in-migration and life-time out-migration is termed as life-time net-migration.
Migration rate
It is taken as the ratio of total migrants counted in the Census to its total population multiplied by 1000. While discussing the migration result, the term population mobility is taken as a synonym to migration rate.
Reserve Bank of India Grade ‘B’ Officers Exam. 2011 Solved Paper
General Awareness
(Exam Held on 6-2-2011)
1. What role do Micro, Small and Medium Enterprises (MSMEs) play in a country’s economic and industrial development ?
1. They have the capacity to absorb skilled and unskilled labour available in the country.
2. Such institutions help in distribution of income in a wide spectrum and do not allow it to get concentrated in few hands or in few areas.
3. They help in eradication of poverty by providing selfemployment opportunities.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 3
(E) All 1, 2 and 3
Ans : (E)
2. Which of the following statements about the Indian Economy is correct ?
(A) Indian economy is as developed as that of China
(B) About 70% Indians are involved in some type of selfemployment and are the owners of some or the other micro or small enterprise
(C) In India single biggest employment is agriculture and allied activities
(D) About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital
(E) None of these
Ans : (C)
3. Which of the following is/are correct about the problems of Indian Agriculture ?
1. Large agricultural subsidies are hampering productivity—enhancing investments.
2. Irrigation infrastructure is in bad shape and needs immediate improvement.
3. Frequent takeovers of fertile land by private companies and multinationals to launch big business complexes.
(A) Only 1
(B) Only 1 and 2
(C) Only 1 and 3
(D) All 1, 2 and 3
(E) None of these
Ans : (D)
4. As per news in various journals, many banks have failed to achieve agri-loan target fixed by the RBI for the year 2010-11. What was the target fixed for the year ?
(A) 10%
(B) 15%
(C) 18%
(D) 24%
(E) 30%
Ans : (C)
5. Which of the following statements about Agro and Allied activities is not correct ?
(A) Farmers do not get adequate credit for purchase of cattle
(B) There is a need to improve breed and genetic characteristics of the cattle folk
(C) India has huge forest cover and also degraded and marshy land which can be used for productive purposes
(D) India is the 10th largest producer of medicinal and aromatic plants. But the products are not of commercial value
(E) Animal husbandry plays an important role in providing sustainability under Rain fed conditions
Ans : (C)
6. Which of the following schemes launched by the Govt. of India aims at enhancing the livelihood security of the people in rural areas by guaranteeing hundred days of employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work ?
(A) TRYSEM
(B) Pradhan Mantri Gram Sadak Yojana
(C) Kutir Jyoti Scheme
(D) ASHA
(E) MGNREGA
Ans : (E)
7. In some parts of India, farmers face acute distress because of heavy burden of debt from noninstitutional lenders. Who can be called a non-institutional lender ?
(A) Small Banks
(B) Grameen Banks
(C) Credit Cooperative Societies
(D) Micro Finance Institutions
(E) Money Lenders
Ans : (E)
8. The South Asian Free Trade Agreement (SAFTA) was introduced with a view of levying how much custom duty for trading any product within the SAARC zone ?
(A) 5%
(B) 4%
(C) 2%
(D) 1%
(E) No custom duty
Ans : (E)
9. Which of the following organisation prepares rural credit plans on annual basis for all districts in India, which in turn from the base for annual credit plans of all rural financial institutions ?
(A) SIDBI
(B) NABARD
(C) RBI
(D) Indian Bank’s Association
(E) CII
Ans : (B)
10. Which of the following is TRUE about the current population trend(s) in India ?
1. Every year India adds more people to the world’s population than any other country.
2. Currently India has a young population which will grow somewhat older largely as a result of decline in fertility.
3. The National Family Planning Programme did not contribute much in controlling fertility rate
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (D)
11. In economic terms, which of the following factors determine the ‘Individual’s demand’ of a product/commodity ?
1. Price of a commodity.
2. Income of the individual.
3. Utility and quality of a commodity.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 3
(E) All 1, 2 and 3
Ans : (E)
12. Which of the following terms is used in the field of economics ?
(A) Adiabatic
(B) Bohr Theory
(C) Plasma
(D) Barter System
(E) Viscosity
Ans : (D)
13. “Pascal Lamy calls on trade negotiators to move out of their comfort zones towards agreements”, was the headline in some major newspapers. This news is associated with which of the following organizations/agencies ?
(A) World Trade Organization
(B) International Monetary Fund
(C) World Bank
(D) United Nations Organisations
(E) North Atlantic Treaty Organisation
Ans : (A)
14. Which of the following is not a function of the Planning Commission of India ?
(A) Assessment of the material, capital and human resources of the country
(B) Formulation of plans for the most effective and balanced utilization of country’s resources
(C) Public cooperation in national development
(D) Preparation of annual budget of the country and collection of taxes to raise capital for the implementation of the plans
(E) Determination of stages in which the plan should be carried out
Ans : (D)
15. Which of the following periods represents the period of the first Five Year Plan in India ?
(A) 1948 – 53
(B) 1947 – 52
(C) 1952 – 57
(D) 1950 – 55
(E) 1951 – 56
Ans : (E)
16. Which of the following is the name of the process available to common people to seek court’s intervention in matters of public interest ?
(A) Public Interest Litigation (PIL)
(B) Habeas Corpus
(C) Ordinance
(D) Residuary power
(E) None of these
Ans : (A)
17. India’s foreign policy is based on several principles, one of which is—
(A) Panchsheel
(B) Satyamev Jayate
(C) Live and Let Live
(D) Vasudhaiv Kutumbkam
(E) None of these
Ans : (A)
18. As we know thousands of tonnes of foodgrain was washed away in the floods in Haryana and Punjab a few months back. This incident is an example which indicates that there is a scope for improvement in our machinery controlling our—
(A) Mid Day Meal Scheme
(B) Public Distribution System
(C) Food for Work Programme
(D) Village Grain Bank Scheme
(E) Operation Flood Scheme
Ans : (B)
19. President Barack Obama was on a visit to India a few months back. His visit is said to have forged both the nations into a new era of relations. India managed to sign a special agreement with US in which of the following fields/areas as a byproduct of the visit of Obama ?
1. Energy sector and Nuclear energy as US has lifted sanctions on supply of high tech machines.
2. Skill Development Programmes in IT sector in which US has super-specialisation.
3. Training in management of Micro finance Institutions.
(A) Only 1
(B) Only 2
(C) Only 1 and 3
(D) Only 2 and 3
(E) Only 1 and 2
Ans : (A)
20. Many times we read a term ‘Tax Haven’ in various newspapers. What does it mean ?
1. It is a country where certain taxes are levied at a very low rate.
2. It is a country where people can dump their illegal money without any problem.
3. It is a place where foreigners can work without paying any tax on their income.
(A) Only 1 and 2
(B) Only 2
(C) Only 2 and 3
(D) Only 1
(E) All 1, 2 and 3
Ans : (E)
21. As per existing law, what is the minimum per day wages paid to a worker from unorganised sector in India ?
(A) 50
(B) 75
(C) 100
(D) 125
(E) No such law is there
Ans : (C)
22. Who amongst the following was awarded the “Indira Gandhi Peace Prize” for 2010 ?
(A) Ronald Noble
(B) Luiz Inacio Lula D’Silva
(C) Mohammed Elbaradei
(D) Aung San Su Kyi
(E) None of these
Ans : (B)
23. Which of the following is not a Poverty Eradication Programme launched by the Govt. of India ?
(A) Swarnjayanti Gram Swarozgar Yojana
(B) Jawahar Gram Samridhi Yojana
(C) National Social Assistance Programme
(D) ADHAR
(E) National Family Benefit Scheme
Ans : (D)
24. According to the World Bank estimate about 40% Indians are living below International Poverty line of US $ —
(A) 1 per day
(B) 1•25 per day
(C) 2 per day
(D) 2•5 per day
(E) 3 per day
Ans : (B)
25. The 10th Trilateral Ministerial Meeting of RIC group was organized in November 2010. Who are the members of the RIC ?
(A) Russia—Iran—China
(B) Russia—India—China
(C) Romania—Iran—Canada
(D) Romania—Israel—Chile
(E) Russia—India—Croatia
Ans : (B)
26. India and Syria recently decided to double their trade in next 2 years. Indian Govt. has decided to export which of the following commodities to Syria ?
(A) Natural gas
(B) Milk
(C) Oil
(D) Wheat
(E) All of these
Ans : (E)
27. India has sanctioned a 26 million grant to which of the following countries for development of tube wells ?
(A) Myanmar
(B) Bangladesh
(C) Nepal
(D) Pakistan
(E) Sri Lanka
Ans : (C)
28. Which of the following is the name of the scheme launched by the Govt. of India for adolescent girls ? (Launched in November 2010)
(A) Swawlamban
(B) SABALA
(C) Aadhar
(D) ASHA
(E) None of these
Ans : (B)
29. Many times we see in financial journals/bulletins a term M3. What is M3 ?
(A) Currency in circulation on a particular day
(B) Total value of the foreign exchange on a particular day
(C) Total value of export credit on a given date
(D) Total value of the tax collected in a year
(E) None of these
Ans : (E)
30. As per news in various newspapers, Govt. has allocated a huge sum of 31,000 crore for ‘RTE’. What is full form of RTE ?
(A) Right of Education
(B) Reforms in Technical Education
(C) Return to Empowerment
(D) Right to Empowerment
(E) Renewable Technology for Energy
Ans : (A)
31. Which of the following is not a major function of the RBI in India ?
(A) Issuance of currency notes
(B) To facilitate external trade and payment and developing a foreign exchange market in India
(C) Maintaining price stability and ensuring adequate flow of credit to productive sectors
(D) Taking loans/credit from World Bank/IMF and ADB etc., and reallocating it for various activities decided by the Govt. of India
(E) Formulation and monitoring the monetary and credit policy
Ans : (C)
32. The RBI has regional offices at various places. At which of the following places it does not have an office ?
(A) Kota
(B) Shimla
(C) Lucknow
(D) Panaji
(E) Guwahati
Ans : (C)
33. Which of the following organizations/agencies has given a US $ 407 billion loan to India to boost up its micro finance services in unbanked areas ?
(A) IMF
(B) World Bank
(C) Bank of Japan
(D) ADB
(E) Jointly by IMF and ADB
Ans : (B)
34. The Prime Minister’s Economic Advisory Council (PMEAC) has projected that the Indian Exports will grow by what percentage during 2010-11 ?
(A) 15%
(B) 18%
(C) 22%
(D) 24%
(E) 28%
Ans : (B)
35. Which of the following organisations/agencies has given the estimate that the India will be third largest FDI recipient in 2010–12 ?
(A) UNCTAD
(B) WTO
(C) World Bank
(D) IMF
(E) None of these
Ans : (A)
36. The performance of which of the following industries is considered performance of a core industry ?
(A) Garments
(B) Leather
(C) IT
(D) Oil and Petroleum
(E) Handicrafts
Ans : (D)
37. Who amongst the following is not a recipient of Nobel Prize in economics ?
(A) Peter A. Diamond
(B) Dale T. Mortensen
(C) Amartya Sen
(D) Paul Krugman
(E) Robert G. Edwards
Ans : (E)
38. Basel Committee has given its recommendations on which of the following aspects of banking operations ?
(A) Marketing of bank products
(B) Priority sector lending
(C) Risk Management
(D) Micro financing
(E) All of these
Ans : (C)
39. Which of the following is the rank of India in Human Development Report 2010 prepared by the UNO ?
(A) 99
(B) 100
(C) 115
(D) 119
(E) None of these
Ans : (D)
40. Which of the following was/where the key objectives of the RBI’s review of Monetary and Credit Policy 2010-11 which was reviewed again on 2nd November 2010 ?
1. To sustain the anti inflationary thrust.
2. To maintain an interest rate regime consistent with price.
3. To provide extra tax incentives to exporters who were in stress due to market fluctuations.
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) All 1, 2 and 3
(E) None of these
Ans : (A)
41. PIIGS is the group of nations falling under—
(A) Euro zone
(B) Asia Pacific
(C) SAARC
(D) NATO
(E) Commonwealth
Ans : (A)
42. Which of the following is/are the preconditions, the IMF has put to provide bail out package to Ireland ?
1. It should gradually lower down unemployment benefits.
2. It should bring down the minimum wages in order to boost employment.
3. It should import some of the crucial commodities from non euro countries as an immediate measure to improve shortage of the same.
(A) Only 1 and 2
(B) Only 2 and 3
(C) Only 1 and 3
(D) Only 1
(E) All 1, 2 and 3
Ans : (B)
43. India is self-sufficient in production of which of the following commodities ?
(A) Edible oil
(B) Milk
(C) Pulses
(D) Natural gas
(E) All of these
Ans : (B)
44. Which of the following is used as a fuel in Nuclear power stations in India ?
(A) Thorium
(B) Copper
(C) Tin
(D) Chromium
(E) All of these
Ans : (A)
45. Which of the following States has taken up the job of improving Dams with the help of the World Bank’s Dam Rehabilitation and Improvement project ?
(A) Kerala
(B) Gujarat
(C) Tamil Nadu
(D) Uttar Pradesh
(E) Guwahati
Ans : (A)
46. Nitish Kumar led National Democratic Alliance won how many seats in recently held assembly elections in Bihar ?
(A) 150
(B) 243
(C) 200
(D) 206
(E) None of these
Ans : (D)
47. Who amongst the following is the author of the book “Development as Freedom” ?
(A) M. S. Swaminathan
(B) C. Rangarajan
(C) Manmohan Singh
(D) Y. V. Reddy
(E) Amartya Sen
Ans : (E)
48. Which of the following terms is used in Finance and Banking ?
(A) Line of Sight
(B) Scattering loss
(C) Revenue
(D) Oscillation
(E) Shielding
Ans : (A)
49. Who amongst the following is a famous economist ?
(A) Richard Dawkins
(B) Alan Greenspan
(C) Vernon Heywood
(D) Olivar Sachs
(E) Stephan Hawking
Ans : (B)
50. Who amongst the following has never held post of the Governor of the RBI ?
(A) C. Rangarajan
(B) L. K. Jha
(C) Manmohan Singh
(D) Bimal Jalan
(E) Usha Thorat
Ans : (E)
Friday, June 10, 2011
NAC's seven-point test for land acquisition bill
The National Advisory Council (NAC) has prescribed a seven-point test for a having a humane legistlation on land acquisition and rehabilitation.
In a letter to the government, the NAC chaired by Sonia Gandhi, has suggested a check list of seven parameters which includes provisions for a rehabilitation package that is sensitive to the aspirations of the affected people.
"Does it discourage forced displacement? Does it minimise adverse impacts on people, habitats, environment and biodiversity? Does it minimise adverse impacts on food security by actively discouraging acquisition of agricultural land, and promoting local economies?
"Does it comprehensively define project affected persons/families? Does it provide for a just compensation and rehabilitation package, sensitive to the aspirations, culture, community, natural resource base and skill base of the affected people?
"Does it ensure humane, participatory, informed, consultative and transparent process" Does it provide for effective implementation?"
"The test for any such legislation should be on these parameters," said the letter sent by the NAC to the government.
The NAC also wants the Land Acquisition, Resettlement and Rehabilitation Act to make violation of the law by public officials a punishable offence.
"Penal provisions for violations (by public officials), in the form of fines imposed on public officials who fail based on their job charts issued by the state government, must be included in the statute," the NAC said.
The NAC has suggested that the land acquired for project that remains unused should be returned to the displaced families with a nominal cost recovery.
The recommendation also includes a provision for the government to notify the amenities to be provided at resettlement sites.
"The basic amenities with minimum standards shall be mandatorily provided at the new site. These include roads, safe drinking water, hygiene, educational facilities, community hall, and basic irrigation facilities at project cost," the NAC said in its communication to the government.
It also recommended setting up of a National Commission for Land Acquisition, Resettlement and Rehabilitation (NLCRR) with powers to supervise and exercise oversight over land acquisition, resettlement and rehabilitation.
"The NCLRR shall have a chairperson, and four members of relevant skills and experience, and independence, at least two of whom should be women, and at least one of them SC and one ST," the NAC letter said.
It suggested that the process of appointments to NCLRR should be similar to the Central Information Commission under the Right to Information Act.
The NCLRR should be tasked with promoting public accountability and ensuring compliance with legally established policies, procedures and practices.
The Commission should also mediate and respond to complaints and disputes in the capacity of an ombusdman and also fix responsibility on public officials for lapses and awarding fines.
The NCLRR should also provide strategic advice to the government, the NAC said.
Industrial growth halves in April
The Index of Industrial Production (IIP) on Friday registered a 6.3 per cent growth in April, according to the new series with base year 2004-05 released by the Central Statistics Office (CSO) as against 13.1 per cent recorded in the same month in the previous year.
Union Finance Minister Pranab Mukherjee termed the declining industrial growth rate in April as disturbing stating he would wait for more data to ascertain the trend.
As per the new series, manufacturing growth in April stood at 6.9 per cent against 14.4 per cent in April, 2010, while mining and electricity production was up by 2.2 per cent (9.2 per cent) and 6.4 per cent (6.5 per cent), respectively. Capital goods registered a growth of 14.5 per cent (35.5 per cent) and consumer goods were up by 2.9 per cent (13.8 per cent).
On the other hand, as per the old series (base year 1993-94), the industrial output registered a steep fall at 4.4 per cent in April against 16.6 per cent a year ago. Growth in manufacturing, which constitutes about 80 per cent of the index weight, nosedived to 4.4 per cent in April from a high of 18 per cent in the same month in the previous year.
Major area of concern
Mining also grew by a meagre 2.1 per cent during the month under review as against 12 per cent in April, 2010. Growth in electricity production also dipped to 6.4 per cent from 6.9 per cent. A major area of concern was the low off-take of capital goods, whose production growth was just 2.5 per cent in April compared to 64.1 per cent in same month in the previous year. Overall, consumer goods also saw a slow growth rate of 5.9 per cent (11.9 per cent).
Production trends for 100 new items, including ice cream, fruit juice and mobile phones, has been included for measuring the pace of industrial production in the new index series. The new items in the IIP would include computer stationery, newspapers, chemicals such as ammonia and ammonia sulphate, electrical products such as solder power systems, gems and jewellery and molasses.
On the other hand, obsolete articles such as typewriters, loud speakers and VCRs have been taken off to make the series representative of the present-day industrial production and demand scenario.
The base year for the new series is 2004-05 as against 1993-94 for the old one. The new IIP series is expected to help policymakers and market participants forecast economic trends. The Department of Industrial Promotion and Policy (DIPP) and the CSO jointly worked on the new index.
The latest slide in monthly numbers came after the IIP registered a growth of only 7.8 per cent in March, revised upward from the original estimate of 7.3 per cent, as against 15.5 per cent in March, 2010. Experts had blamed the RBI's rate hikes, leading to lowering of investments and a fall in output, for the slowdown in IIP growth. Some experts said the slowdown might force the RBI to have a relook at its monetary tightening policy. However, many others said the prevailing high inflation situation would force the RBI to continue with the rate hikes. Crisil chief economist D. K. Joshi said: “IIP growth is quite volatile and not to read much from monthly trends. The most important development after the introduction of the new index is the confirmation of belief that the previous index under-stated industrial growth.'' Mr. Joshi said the RBI was likely to hike rates by another 25 basis points at its next review on June 16.
Food price 'threat' for poor countries: UN agency
Food prices are to remain high and volatile into 2012, presenting a "threat" to poor countries that will have to spend up to a third more on food imports in 2011, the UN food agency said on Tuesday. The Rome-based Food and Agriculture Organisation (FAO) said that its food price index averaged 232 points in May - down from a revised estimate of 235 points in April but was still 37% above its level in May 2010. "High and volatile agricultural commodity prices are likely to prevail for the rest of this year and into 2012," FAO said in a statement.
The reason for the monthly decline was the slight decrease in international prices of cereals and sugar, which offset increases for meat and dairy.
FAO said that the next few months will be "critical" - with encouraging prospects for the wheat harvests in Russia and Ukraine but a potential for lower maize and wheat yields in Europe and North America due to the weather.
"The general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries," said David Hallam, head of FAO's markets division.
FAO said that the cost of global food imports is set to reach a record of $1.29 trillion (879 billion euros) in 2011 - 21% more than in 2010.
Low-income food deficit countries and least developed countries will likely have to spend 27 and 30% more respectively on food imports, FAO said.
The reason for the monthly decline was the slight decrease in international prices of cereals and sugar, which offset increases for meat and dairy.
FAO said that the next few months will be "critical" - with encouraging prospects for the wheat harvests in Russia and Ukraine but a potential for lower maize and wheat yields in Europe and North America due to the weather.
"The general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries," said David Hallam, head of FAO's markets division.
FAO said that the cost of global food imports is set to reach a record of $1.29 trillion (879 billion euros) in 2011 - 21% more than in 2010.
Low-income food deficit countries and least developed countries will likely have to spend 27 and 30% more respectively on food imports, FAO said.
Govt lowers pension age limit for BPL category
An additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line will get pension benefits with the Government on Thursday lowering the age limit to 60. The Union Cabinet chaired by Prime Minister Manmohan Singh also decided to increase the rate of pension to persons of 80 years and above from Rs 200 to Rs 500.
The revised norms would be applicable with effect from April 1 this year and total additional requirement will be Rs 2,770 crore for implementing the Indira Gandhi National Old Age Pension Scheme-- part of the National Social Assistance Programme of the Central government.
"It is estimated that lowering of the age limit would benefit about an additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line. It is estimated that 26.49 lakh persons above the age of 80 years and living below the poverty line, would become eligible to receive enhanced Central assistance at Rs. 500 per month," the Government said in a statement.
At present 169 lakh persons above the age of 65 years and living below poverty line are receiving Central assistance under Indira Gandhi National Old Age Pension Scheme.
"The additional funds required will be Rs 1,736 crore for providing old age pension at Rs 200 per month per beneficiary in the age group of 60-64 years and Rs 953 crore for providing enhanced pension at Rs 500 per month per beneficiary of age 80 years and above," the Government said.
"Thus the total additional requirement will be Rs 2,770 crore including 3 per cent administrative expenses," it said.
As a result of change in the eligibility criteria for receiving old age pension, eligibility criteria for widow pension under IGNWPS and disability pension under IGNDPS will get revised from 40-64 years to 40-59 years and from 18-64 years to 18-59 years respectively, the statement said.
It has been a long-pending demand to lower the age of old age pension beneficiaries to 60.
The revised norms would be applicable with effect from April 1 this year and total additional requirement will be Rs 2,770 crore for implementing the Indira Gandhi National Old Age Pension Scheme-- part of the National Social Assistance Programme of the Central government.
"It is estimated that lowering of the age limit would benefit about an additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line. It is estimated that 26.49 lakh persons above the age of 80 years and living below the poverty line, would become eligible to receive enhanced Central assistance at Rs. 500 per month," the Government said in a statement.
At present 169 lakh persons above the age of 65 years and living below poverty line are receiving Central assistance under Indira Gandhi National Old Age Pension Scheme.
"The additional funds required will be Rs 1,736 crore for providing old age pension at Rs 200 per month per beneficiary in the age group of 60-64 years and Rs 953 crore for providing enhanced pension at Rs 500 per month per beneficiary of age 80 years and above," the Government said.
"Thus the total additional requirement will be Rs 2,770 crore including 3 per cent administrative expenses," it said.
As a result of change in the eligibility criteria for receiving old age pension, eligibility criteria for widow pension under IGNWPS and disability pension under IGNDPS will get revised from 40-64 years to 40-59 years and from 18-64 years to 18-59 years respectively, the statement said.
It has been a long-pending demand to lower the age of old age pension beneficiaries to 60.
Black money: CBDT plans global info hub
The Central Board of Direct Taxes (CBDT) is coming up with an information hub with a view to fast-tracking money laundering and tax evasion cases and make exchange of tax-related information easier and faster between India and other countries. The exchange of information unit (EoIU) in New Delhi, a part of the income tax department, will provide and exchange information on issues related to direct taxes — suspicious transactions, tax evasion, money laundering, income generated through business activities by companies in India and abroad, and issues covered under the existing Double Taxation Avoidance Agreement (DTAA).
India currently has amended DTAAs with 40 nations for sharing bank and tax-related transactions.
"Information will be provided and exchanged between the competent authorities of the two countries, which will be helpful for the newly-created Directorate of Income Tax (Criminal Investigation) in probing cases both in India and abroad,"
The unit will act as a nodal point, where all information coming to India from other countries including tax havens shall be processed, classified and disseminated to tax authorities across the country. "It’s a two-way process and similar information will be provided to tax authorities abroad."
The implementation is in the final stage and the board is looking out for a location outside the North Block to set up of the unit. "The software required to operate this unit is ready and once a location is finalised, the unit will be operational."
However, according to a section of tax officials, the shortage of manpower may affect the functioning of the new unit.
India currently has amended DTAAs with 40 nations for sharing bank and tax-related transactions.
"Information will be provided and exchanged between the competent authorities of the two countries, which will be helpful for the newly-created Directorate of Income Tax (Criminal Investigation) in probing cases both in India and abroad,"
The unit will act as a nodal point, where all information coming to India from other countries including tax havens shall be processed, classified and disseminated to tax authorities across the country. "It’s a two-way process and similar information will be provided to tax authorities abroad."
The implementation is in the final stage and the board is looking out for a location outside the North Block to set up of the unit. "The software required to operate this unit is ready and once a location is finalised, the unit will be operational."
However, according to a section of tax officials, the shortage of manpower may affect the functioning of the new unit.
Power capacity addition to double in 11th plan
New power generation capacity in the current 11th Plan period is set to double over the preceding five years in a first, despite hiccups that are causing targets to be missed. The plan ends in March, 2012. The Planning Commission, in its review on the performance of the power sector, has noted that "power capacity addition by the end of the 11th plan will be about 2.5 times of earlier plan even though it will be only 63% of the power capacity addition targets set for the 11th plan."
"In the first four years of the 11th plan, power capacities have increased by 34,615 mw and may reach 50,000-52,000 mw by the end of the plan," the Commission said. Around 17,600 mw of power capacity is expected to be added this fiscal.
As against this, the power capacity addition in the whole of 10th plan stood at 21,080 mw.
The power capacity addition targets set for the 11th Plan was 78,700 mw but it was later assessed that there may be shortfalls in the capacity addition and the actual addition may be 62,374 mw. However, going by the position of coal, the actual capacity addition may be around 52,000 mw by the end of the plan period.
"Even though the capacity will fall short of targets in the 11th plan, the power ministry's efforts needs to be lauded for a substantial capacity addition of close to 52,000 mw by the end of the current plan," a Planning Commission official said.
The review has also noted that the production of coal, the mainstay of power generation in India, has been seriously affected by the policy of 'Go' and 'No Go' of the ministry of environment and forests. This, it said, has resulted in serious drop in coal production, which was static at around 535 million tonnes in 2009-10 and 2010-11.
"The power generation, from the existing and new plants likely to be added, will get adversely affected, unless domestic coal production picks up at 7% annual growth," the Planning Commission said. The average growth in coal production during the 11th plan stood at 5.1%.
"In the first four years of the 11th plan, power capacities have increased by 34,615 mw and may reach 50,000-52,000 mw by the end of the plan," the Commission said. Around 17,600 mw of power capacity is expected to be added this fiscal.
As against this, the power capacity addition in the whole of 10th plan stood at 21,080 mw.
The power capacity addition targets set for the 11th Plan was 78,700 mw but it was later assessed that there may be shortfalls in the capacity addition and the actual addition may be 62,374 mw. However, going by the position of coal, the actual capacity addition may be around 52,000 mw by the end of the plan period.
"Even though the capacity will fall short of targets in the 11th plan, the power ministry's efforts needs to be lauded for a substantial capacity addition of close to 52,000 mw by the end of the current plan," a Planning Commission official said.
The review has also noted that the production of coal, the mainstay of power generation in India, has been seriously affected by the policy of 'Go' and 'No Go' of the ministry of environment and forests. This, it said, has resulted in serious drop in coal production, which was static at around 535 million tonnes in 2009-10 and 2010-11.
"The power generation, from the existing and new plants likely to be added, will get adversely affected, unless domestic coal production picks up at 7% annual growth," the Planning Commission said. The average growth in coal production during the 11th plan stood at 5.1%.
Govt to allow 51% foreign investment in retail business
The government has moved a formal proposal to allow foreign direct investment of up to 51% in multi-brand retail stores although with a few riders. At present, FDI in multi-brand retail business is prohibited in India. The large deep discount stores, such as Walmart, Tesco and Carrefour, will be all owed only in 10-lakh-plus cities and only in those states which allow FDI in multi-brand retail.
According to the proposal, piloted by the department of industrial policy and promotion last month, at least 50% of the total investment should be made for creating back-end infrastructure, such as building cold storage chain and warehouses. And the retailers will have to keep the RBI and the Foreign Investment Promotion Board in the loop in this regard.
According to the proposal, piloted by the department of industrial policy and promotion last month, at least 50% of the total investment should be made for creating back-end infrastructure, such as building cold storage chain and warehouses. And the retailers will have to keep the RBI and the Foreign Investment Promotion Board in the loop in this regard.
Revision of Base Year of All India Index of Industrial Production
The Committee of Secretaries (COS) in its meeting held on 10th May, 2011 approved the release of the new series of Index of Industrial Production (IIP) with 2004-05 as its base and directed that the new series of IIP may be released for the month of April, 2011onwards. Accordingly IIP new series is released today i.e 10th June, 2011, which is the Quick Estimate (QE) of IIP for the month of April, 2011. The time series indices for the period of April, 2005 to March, 2011 are also released along with the QE of April, 2011 index. Though the Q.E. of the IIP pertaining to the old series of IIP (Base: 1993-94=100) is also made available through this Ministry’s website for comparison and academic purposes, the same will be discontinued from the month of September, 2011 onwards. In other words, the Q.E. of IIP pertaining to 1993-94 series will be provided only upto the month of August, 2011, which will be the Q.E. of IIP for the month of June, 2011.
The revision of base year of IIP was undertaken based on the recommendations of the Standing Committee on Industrial Statistics (SCIS), constituted by the Ministry of Statistics & PI. The SCIS includes members from concerned Ministries, and it is presently chaired by Dr. Biswanath Goldar, Professor, Institute of Economic Growth. The National Statistical Commission (NSC) also recommended revision of base year of IIP to 2004-05.
Some of the salient features of new series of IIP are as follows:
A representative item basket comprising 682 individual items has been selected for the new series of IIP. Further, and a new weighting diagram which better reflects the present structure and composition of the industry due to changes in the technology, economic reforms and production behaviour over time, is derived for the new series.
The new series of IIP covers the sectors of mining, manufacturing and electricity in its scope as in the current series. For the compilation of sectoral weights for these three main sectors, GDP at factor cost available from the National Accounts Statistics (2010) is used.
The result of the Annual Survey of Industries (ASI): 2004-05 is used as the basic frame for the selection of products for the manufacturing sector. However, for deciding the industry level (NIC 2 digit) weights of the manufacturing sector, the estimates of Gross Value Added (GVA) as per ASI: 2004-05 for the organised manufacturing sector and as per the 62nd round of the National Sample Survey for the unorganised manufacturing sector are used. The number of items, item groups and weights as per different industry groups pertaining to the new series of IIP is at Annexure-I.
Sector wise comparative statements of weights, no. of items and item groups between the current series and new series are in the following table:
Table –I: Sector wise comparative items and weight
| Sl. No. | Sector | Items | Item groups | Weight | |||
| 1993-94 | 2004-05 | 1993-94 | 2004-05 | 1993-94 | 2004-05 | ||
| 1 | Mining | 64 | 61 | 1 | 1 | 104.73 | 141.57 |
| 2 | Manufacturing | 473 | 620 | 281 | 397 | 793.58 | 755.27 |
| 3 | Electricity | 1 | 1 | 1 | 1 | 101.69 | 103.16 |
| 4 | Total | 538 | 682 | 283 | 399 | 1000.00 | 1000.00 |
The monthly production data for the compilation of new series of IIP are being made available to the CSO by sixteen (16) source agencies viz . Indian Bureau of Mines (IBM), Directorate of Sugar, O/o the Salt Commissioner, Directorate of Vanaspati, Vegetable Oil & Fats, Tea Board, Coffee Board, O/o the Textile Commissioner, O/o the Jute Commissioner, O/o the Coal Controller, M/o Petroleum, O/o the Joint Plant Committee (Iron & Steel), Railway Board, D/o Industrial Policy & Promotion, D/o Chemicals & Petrochemicals, D/o Fertilizers and Central Electricity Authority. The number of items, item groups and weights as per different source agencies pertaining to the new series of IIP is at Annexure-II. Out of these, the Indian Bureau of Mines compiles the monthly indices for the mining sector and supplies the same to the CSO, which is suitably dovetailed with the indices for manufacturing and electricity sectors to arrive at the general index.
Some of the important items newly included in the series basket are ‘Milk, skimmed, pasteurised’, ‘Rice’, ‘Cattle and poultry feed’, ‘Woollen carpets’, ‘Apparels’, ‘Writing & printing paper’, ‘Newspapers’, ‘Propylene’, ‘Purified terephthalic acid’, ‘Complex grade fertilizers’, ‘Paraxylene’, ‘Antibiotics & it's preparations’, ‘Polythene bags incl. HDPE & LDPE bags’, ‘Glass sheet’, ‘Refractory bricks’, ‘Marble tiles/slabs’, ‘Grinding wheels’, ‘Aluminium’, ‘Steel structures’, ‘Heat exchangers’, ‘Insulated cables/wires all kind’, ‘Colour TV sets’, ‘Lens of all kinds’, ‘Wood furniture’, ‘Coir mats & matting’, ‘Gems and jewellery’, ‘Copper and copper products’, ‘Poly vinyl chloride’, ‘Polypropylene( incl. co-polymer)’ and ‘Molasses’.
Major changes due to base revision
The base year of IIP for the new series is 2004-05, as against 1993-94 for the old series.
The weighting diagram has undergone change due to base revision.
The total coverage of products has increased at the overall level.
National Industrial Classification (NIC)-1987 was used in the old series whereas for the new series, NIC-2004 is used. As such, at industry level, monthly index and their growth is being published for 22 industry groups for the new series, whereas for the old series, the monthly index and growth was released for 17 industry groups.
14 out of 15 source agencies are retained in new series. Department of Chemicals & Petrochemicals and Department of Fertilizers are included in the new series as independent source agencies because of growing importance of their respective industries. Ministry of Micro, Small & Medium Enterprises (MSME) is presently excluded as a source agency for new series of IIP, though bigger units of MSME sector, which are part of the coverage of Annual Survey of Industries (ASI) are already included in the item basket. CSO held dialogues with the representatives from O/o the Development Commissioner (MSME) for identifying products and units from the recently completed 4th all India Census cum Survey of MSME sector and accordingly putting in place a new system of regular monthly collection of data. After the system of data collection is in place, DC (MSME) may develop the index for the MSME sector separately, for which CSO would provide necessary technical guidance. Once DC (MSME) is ready with the index, this monthly index for the MSME sector can be dovetailed with the General Index of All-India IIP by assigning a proper weight through suitable methodological framework. This view was also endorsed by the COS.
Annexure-I
Industry group wise number of items, item groups and weights
| NIC-04 | Industry | No. of items | No. of item groups | Weights |
| 15 | Food products and beverages | 54 | 46 | 72.76 |
| 16 | Tobacco products | 5 | 5 | 15.70 |
| 17 | Textiles | 58 | 23 | 61.64 |
| 18 | Wearing apparel; dressing and dyeing of fur | 3 | 2 | 27.82 |
| 19 | Tanning and dressing of leather products | 30 | 6 | 5.82 |
| 20 | Wood and of wood products except furniture | 4 | 4 | 10.51 |
| 21 | Paper and paper products | 17 | 8 | 9.99 |
| 22 | Publishing and printing | 4 | 2 | 10.78 |
| 23 | Coke, refined petroleum products & nuclear fuel | 16 | 16 | 67.15 |
| 24 | Chemicals and chemical products | 96 | 89 | 100.59 |
| 25 | Rubber and plastics products | 37 | 25 | 20.25 |
| 26 | Other non-metallic mineral products | 27 | 14 | 43.14 |
| 27 | Basic metals | 61 | 30 | 113.35 |
| 28 | Fabricated metal products, except machinery and equipment | 15 | 13 | 30.85 |
| 29 | Machinery and equipment n.e.c. | 65 | 42 | 37.63 |
| 30 | Office, accounting and computing machinery | 6 | 4 | 3.05 |
| 31 | Electrical machinery and apparatus n.e.c. | 41 | 27 | 19.80 |
| 32 | Radio, TV and communication equipment & apparatus | 8 | 8 | 9.89 |
| 33 | Medical, precision and optical instruments, watches and clocks | 16 | 10 | 5.67 |
| 34 | Motor vehicles, trailers and semi-trailers | 30 | 5 | 40.64 |
| 35 | Other transport equipment | 14 | 12 | 18.25 |
| 36 | Furniture; manufacturing n.e.c. | 13 | 6 | 29.97 |
| Total manufacturing | 620 | 397 | 755.27 | |
Annexure-II
Source agency wise number of items, item groups and weights
| S.No. | Source Agency | No. of individual Items | No. of Item groups | Weight |
| 1 | Indian Bureau of Mines | 61 | 1 | 141.57 |
| 2 | Directorate of Sugar | 1 | 1 | 15.25 |
| 3 | O/o the Salt Commissioner | 1 | 1 | 0.53 |
| 4 | Directorate of Vanaspati, Vegetable Oils & Fats | 11 | 11 | 9.17 |
| 5 | Tea Board | 1 | 1 | 6.51 |
| 6 | Coffee Board | 1 | 1 | 0.35 |
| 7 | O/o the Textile Commissioner | 44 | 13 | 52.10 |
| 8 | O/o the Jute Commissioner | 11 | 7 | 4.07 |
| 9 | O/o the Coal Controller | 3 | 3 | 2.96 |
| 10 | M/o Petroleum | 11 | 11 | 59.39 |
| 11 | Joint Plant Committee (Iron & Steel) | 47 | 21 | 92.07 |
| 12 | Railway Board | 6 | 6 | 2.20 |
| 13 | D/o Industrial Policy & Promotion | 430 | 268 | 456.26 |
| 14 | D/o Chemicals & Petrochemicals | 47 | 47 | 41.87 |
| 15 | D/o Fertilizers | 6 | 6 | 12.54 |
| 16 | Central Electricity Authority | 1 | 1 | 103.16 |
| | TOTAL | 682 | 399 | 1000 |
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