07 Jan 2021: PIB Summary & Analysis

January 7th, 2021, PIB:- Download PDF Here

TABLE OF CONTENTS

1. Pravasi Bharatiya Divas 2021
2. Central Sector Scheme for Industrial Development of Jammu & Kashmir
3. Seventh Trade Policy Review of India at the WTO begins
4. Bureau of Indian Standards (BIS)
5. EDUCON-2020
6. Advance Estimates of GDP of 2020-21
7. Liberalised Authorised Economic Operator Package for MSMEs
8. Urban Local Bodies reforms

1. Pravasi Bharatiya Divas 2021

Context:

Pravasi Bharatiya Divas (PBD) 2021 to be held on January 9, 2021.

Details:

• This is the 16^th PBD to be held since the event was first held in 2003.
• The theme for PBD 2021 is “Contributing to Aatmanirbhar Bharat”.
• The Youth PBD will also be celebrated on the theme “Bringing together Young Achievers from India and Indian Diaspora”.

Know more about Pravasi Bharatiya Divas in the linked article.

2. Central Sector Scheme for Industrial Development of Jammu & Kashmir

Context:

Government approves Central Sector Scheme for Industrial Development of Jammu & Kashmir.

About the New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021):

• The GOI has approved the proposal of the Department for Promotion of Industry and Internal Trade (DPIIT) for the Central Sector Scheme for Industrial Development of Jammu & Kashmir.
• The scheme is approved with a total outlay of Rs. 28,400 crore up to the year 2037.
• The New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) has been formulated as a central sector scheme for the development of Industries in the UT of Jammu & Kashmir.
• The main purpose of the scheme is to generate employment which directly leads to the socio-economic development of the area.

The following incentives would be available under the scheme:

• Capital Investment Incentive at the rate of 30% in Zone A and 50% in Zone B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets (in service sector) is available.
  • Units with an investment up to Rs. 50 crore will be eligible to avail this incentive.
  • Maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in Zone A & Zone B respectively.
• Capital Interest subvention: At the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets (in service sector).
• GST Linked Incentive: 300% of the eligible value of actual investment made in plant and machinery (in manufacturing) or construction in building and all other durable physical assets (in service sector) for 10 years.
  • The amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of incentive.
• Working Capital Interest Incentive: All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.

Impact of the scheme:

• Transformation in the industrial ecosystem of J&K.
• Job creation.
• Skill development.
• Sustainable development.
• Attract investment.

3. Seventh Trade Policy Review of India at the WTO begins

What’s in News?

India’s seventh Trade Policy Review (TPR) began in January 2021, at the World Trade Organization in Geneva.

What is Trade Policy Review (TPR)?

The TPR is an important mechanism under the WTO’s monitoring function, and involves a comprehensive peer-review of the Member’s national trade policies. India’s last TPR took place in 2015.

• India’s Commerce Secretary stated that since the last TPR, the GOI has taken several measures to reform and transform the entire economic ecosystem to meet the socio-economic aspirations of all Indians.
• Major policy level changes include the introduction of the GST, the Insolvency & Bankruptcy Code, labour reforms, and an investor-friendly FDI policy.
• Various national programmes include Make in India, Digital India, Startup India and Skill India.
• India has improved in the World Bank’s Doing Business ranking from 142 in 2015 to 63 in 2019.
• In 2019-20, India received the highest ever FDI inflow of USD 74.39 billion.

WTO Secretariat’s Report

• A comprehensive Report issued by the WTO Secretariat on the occasion, chronicling all major trade and economic initiatives that India took over the last five years, acknowledged India’s strong economic growth at 7.4% during the period under review and made a positive note of India’s reform efforts during this period.
• The Report noted that strong economic growth led to an improvement in socio-economic indicators, such as per-capita income and life expectancy in India.
• The Secretariat report also commended India for liberalizing its FDI policy, ratifying the Trade Facilitation Agreement and implementing several trade-facilitation measures during the period under review.

4. Bureau of Indian Standards (BIS)

Context:

Bureau of Indian Standards celebrates its 74^th foundation day.

To know more about BIS, please check PIB dated Jan 14, 2020.

5. EDUCON-2020

Context:

Union Education Minister inaugurates two-day Virtual International Akhand Conference ‘EDUCON-2020’.

About the Conference:

• The two-day International Conference is being organized by Central University of Punjab, Bathinda (CUPB) in collaboration with the Global Educational Research Association (GERA).
• The focal theme of EDUCON-2020 is Envisioning Education for Transforming Youth to Restore Global Peace.
• The conference is being attended by academicians from across the globe.

6. Advance Estimates of GDP of 2020-21

Context:

Advance Estimates of GDP of 2020-21 released by National Statistics Office.

Details:

• The real GDP at 2011-12 prices in 2020-21 has been estimated to contract by 7.7 per cent and nominal GDP at current prices by 4.2 per cent.
• As per quarterly estimates of NSO, real GDP contracted by 15.7 percent in the first half of 2020-21.
• Real GDP on a quarter-on-quarter basis grew at 21 percent from Q1: FY 2020-21 to Q2: FY 2020-21.
• The AE of 2020-21 reflect continued resurgence in economic activity in Q3 and Q4 – which would enable the Indian economy to end the year with a contraction of 7.7 percent.
• The continuous quarter-on-quarter growth endorses the strength of economic fundamentals of the country to sustain a post-lockdown V-shaped recovery.
• On the demand side, real GDP in 2020-21 has been supported by an estimated increase in Government Consumption Expenditure by 5.8 percent.
• On the supply side, agriculture is estimated to register a positive growth of 3.4 percent against 4.0 percent as per the PE of 2019-20.
• In the manufacturing sector, electricity sector is estimated to register a positive growth of 2.7 percent.
• The pandemic and associated public health measures have adversely affected the contact-sensitive services sector where trade, hotels, transport & communication are estimated to contract by 21.4 percent in FY:2020-21.

Read more about this topic in CNA dated Dec 9, 2020.

7. Liberalised Authorised Economic Operator Package for MSMEs

Context:

CBIC introduces flagship Liberalised Authorised Economic Operator Package for MSMEs.

Details:

• The Central Board of Indirect Taxes & Customs (CBIC) has taken a new initiative to introduce its flagship “Liberalised MSME AEO Package” for Micro Small and Medium Enterprises (MSMEs) for swift customs clearances.
• In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-ministry.
• The ‘Liberalised MSME AEO Package’ scheme is a voluntary compliance programme which enables swifter Customs clearance for accredited stakeholders in the global supply chain namely importers, exporters, logistic service providers, custodians, etc.
• Which MSMEs can apply for the scheme?
  • The relaxed requirements allow MSMEs who have filed minimum 10 customs clearance documents in one year and who have a clean compliance record over 2 years to apply for the scheme.
• Benefits of the scheme:
  • Simplified documentation
  • CBIC commits to take a decision on an application for grant of AEO status within only 15 days from electronic submission of complete documents for AEO Tier 1
  • Reduction in bank guarantee requirements
  • Facility of Direct Port Delivery (DPD) of imported containers
  • Direct Port Entry (DPE) of Export Containers
  • High level of facilitation in customs clearance of consignments thereby ensuring shorter cargo release time
  • Facility of a Client Relationship Manager at the customs port as a single point of interaction

8. Urban Local Bodies reforms

Context:

Telangana becomes the 3^rd State to complete Urban Local Bodies reforms.

Details:

• Telangana has become the 3^rd State in the country to successfully undertake “Urban Local Bodies (ULB)” reform stipulated by the Department of Expenditure, Ministry of Finance.
• Thus, the State has become eligible to mobilise additional financial resources of Rs.2,508 crore through Open Market Borrowings.
• Telangana has now joined two other states namely, Andhra Pradesh and Madhya Pradesh, who have completed this reform.
• Reforms in the urban local bodies and the urban utilities reforms are aimed at the financial strengthening of ULBs in the states and to enable them to provide better public health and sanitation services.
• Economically rejuvenated ULBs will also be able to create good civic infrastructure.

Background:

• To meet the challenges posed by the pandemic, GOI had enhanced the borrowing limit of the states by 2 percent of their GSDP.
• Half of this special dispensation was linked to undertaking citizen centric reforms by the states.
• The four citizen centric areas for reforms identified were:
  • Implementation of One Nation One Ration Card System (done by 10 states)
  • Ease of doing business reform (done by 7 states)
  • Urban Local body/utility reforms (done by 3 states)
  • Power sector reforms

Read previous PIB here.

January 7th, 2021, PIB:- Download PDF Here