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Annual Periodic Labour Force Survey (PLFS) on employment and unemployment is conducted by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. As per the PLFS Quarterly Report April-June 2020, quarterly unemployment rate is 20.8%. The complete picture of employment/unemployment situation in the country can be assessed only from survey data for entire year covering both rural and urban areas.
About Annual Periodic Labour Force Survey (PLFS) The Periodic Labour Force Survey (PLFS) was designed with two major objectives for measurement of employment and unemployment. The first was to measure the dynamics in labour force participation and employment status in the short time interval of three months for only the urban areas in the Current Weekly Status (CWS). Second one was, for both rural and urban areas, to measure the labour force estimates on key parameters in both usual status. Sources : PIB
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India has emerged as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia. Now current forex reserves is $608.99 billion as on 25th June 2021. India’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides cushion against unforeseen external shocks.
About Foreign exchange reserves Foreign exchange reserves (forex reserves) are cash and other reserve assets such as gold held by a central bank or other monetary authority that are primarily available to balance payments of the country. Sources : PIB Reserve Bank of India (RBI) has finally issued the Retail Direct scheme to bring investments from individual investors into government securities on 12th July 2021. The scheme is a one-stop solution to facilitate investment in government securities (G-secs) by individual investors. Under this scheme retail investors can open and maintain a Retail Direct Gilt (RDG) account with the RBI free of cost through the dedicated online portal for this scheme.
Government securities (G-secs) These are debt instruments issued by the government to borrow money. The two key categories are treasury bills – short-term instruments which mature in 91 days, 182 days, or 364 days, and dated securities – long-term instruments, which mature anywhere between 5 years and 40 years. Sources : The Hindu The India Industrial Land Bank (IILB) is a GIS-based portal - a one-stop repository of all industrial infrastructure-related information – connectivity, infra, natural resources & terrain, plot-level information etc. Currently, the IILB has approximately 4000 industrial parks mapped across an area of 5.5 lakh hectare of land, serving as a decision support system for investors. The system has been integrated with industry-based GIS systems of 17 states to have details on the portal updated on a real-time basis and will achieve pan-India integration by December 2021.
Sources : PIB The Department of Expenditure, Ministry of Finance on 9th July 2021 released the 3rd monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 9,871 crore for the year 2021-22 to 17 States. The States recommended for Post Devolution Revenue Deficit Grant are: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.
Post Devolution Revenue Deficit (PDRD) Grant The eligibility of States to receive this grant and the quantum of grant was decided by the Finance Commission based on the gap between assessment of revenue and expenditure of the State. The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution. The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 States. Sources : PIB Majority of the members OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting(including India)adopted 1st July 2021. The proposed solution consists of two components-
About Base erosion and profit shifting (BEPS) Base erosion and profit shifting (BEPS) refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax. Working together within OECD/G20 Inclusive Framework on Base erosion and profit shifting (BEPS), 139 countries and jurisdictions are collaborating on the implementation of 15 measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment. Sources : PIB The Union Cabinet on 30th June 2021 approved a viability gap funding support of up to ₹19,041 crore for the implementation of the BharatNet project through Public-Private Partnership (PPP) model in 16 States. The project will be extended to all inhabited villages beyond the gram panchayats in 16 States — Kerala, Karnataka, Rajasthan, Himachal Pradesh, Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, West Bengal, Assam, Meghalaya, Manipur, Mizoram, Tripura, Nagaland and Arunachal Pradesh.
About BharatNet BharatNet is a government-owned telecom infrastructure project for the establishment, management, and operation of the National Optical Fibre Network for connectivity to all 250,000-gram panchayats in the country, covering nearly 625,000 villages. Sources : PIB The 44th Goods & Services Tax(GST) Council met under the Chairmanship of Union Finance Minister through video conferencing on 12th June 2021. The Council in its meeting has decided to reduce the GST rates on the specified items being used in Covid-19 relief and management till 30th September 2021.
About GST Council Established : 2016 Chairman : Union Finance Minister Goods & Services Tax Council was constituted with One Hundred and Twenty-Second Amendment Bill, 2016. GST Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax. The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States. Sources : PIB The Governor of the Reserve Bank of India has announced that the Policy Repo Rate will remain unchanged at 4% and the Reverse Repo Rate too will remain unchanged at 3.35% in RBI’s bi-monthly monetary policy meeting.
About Monetary Policy Committee The Monetary Policy Committee is responsible for fixing the benchmark interest rate in India. The meetings of the Monetary Policy Committee are held bi-monthly. The committee comprises six members - three officials of the Reserve Bank of India and three external members nominated by the Government of India. The Governor of Reserve Bank of India is the chairperson of the committee. The Reserve Bank of India Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC which will bring more transparency and accountability in fixing India's Monetary Policy. Repo Rate Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks. Reverse Repo Rate the RBI borrows money from banks when there is excess liquidity in the market. Sources : PIB The Reserve Bank of India (RBI) decided to continue with the existing interim Ways and Means Advances (WMA) scheme limit of ₹51,560 crore for all States/ UTs shall for six months i.e., up to September 30, given the prevalence of COVID-19. The RBI would review the WMA limit thereafter, depending on the course of the pandemic and its impact on the economy.
Sudhir Shrivastava Advisory Committee on Ways and Means Advances (WMA) Based on the recommendations of the Advisory Committee on Ways and Means Advances (WMA) to State Governments, 2021 (chaired by Sudhir Shrivastava) the RBI had revised the WMA Scheme of States and Union Territories (UTs). About RBI Ways and Means Advances (WMA) The Reserve Bank of India (RBI) gives temporary loan facilities to the central and state governments. This loan facility is called Ways and Means Advances (WMA). The Ways and Means Advances scheme was introduced in 1997. The Ways and Means Advances scheme was introduced to meet mismatches in the receipts and payments of the government. The government can avail of immediate cash from the RBI, if required. The U.S. Treasury report on "Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States", which is submitted to the U.S. Congress. These report used to review partners currency practices of the U.S.’s 20 biggest trading partners. India is one of the 11 countries on the U.S. Treasury’s ‘Monitoring List’ with regard to their currency practices, according to the April 2021 edition of the semi-annual report. The other 10 countries on the list with India are China, Japan, Korea, Germany, Ireland, Italy, Malaysia, Singapore, Thailand, and Mexico.
Criteria to review Major Trading partners with U.S. Three criteria are used to review partners:
The Reserve Bank of India (RBI) on 15th April 2021 announced the setting up of a regulatory review authority(RRA 2.0), to review its regulations internally and in consultation with other stakeholders. Deputy governor M Rajeshwar Rao has been appointed as the head of the regulatory review authority(RRA 2.0) which would be set up for a period of one year from May 1, 2021, unless its tenure is extended.
The central bank had set up an RRA initially for a period of one year from April 1, 1999 for reviewing the regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions. The recommendations of the RRA enabled streamlining and increasing the effectiveness of several procedures, simplifying regulatory prescriptions, paved the way for issuance of master circulars and reduced reporting burden on regulated entities. Union Minister of Commerce & Industry chaired the first meeting of National Startup Advisory Council(NSAC) on 15th April 2021 to advise the Government on measures needed to build a strong ecosystem for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale employment opportunities.
About National Startup Advisory Council(NSAC) Department for Promotion of Industry and Internal Trade (DPIIT) had constituted the National Startup Advisory Council(NSAC). The National Startup Advisory Council will be chaired by Minster for Commerce & Industry. The Council will consist of the non-official members, to be nominated by Central Government, from various categories like founders of successful startups, veterans who have grown and scaled companies in India, persons capable of representing interests of investors into startups, persons capable of representing interests of incubators and accelerators and representatives of associations of stakeholders of startups and representatives of industry associations. The term of the non-official members of the Startup Advisory Council will be for a period of two years.  Export-Import Bank of India (Exim Bank) on 22 Jan 2021 extended a line of credit (LOC) worth USD 50 million to the Republic of Maldives for financing of defence projects. Projects covered under the LOCs extended to Maldives include housing projects, Greater Male' connectivity project, water and sewerage projects, Addu Development Project, international cricket stadium project, defence projects, Gulhifalhu Port Project, Hanimaadhoo airport project and road construction project.
About Line of credit A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds. Export-Import Bank of India (EXIM Bank) Export-Import Bank of India (Exim Bank) was set up in 1982 by an Act of Parliament for the purpose of financing, facilitating and promoting India’s foreign trade. It is the principal financial institution in the country for coordinating the working of institutions engaged in financing exports and imports. The Bank provides financial assistance to export-oriented Indian companies by way of term loans in Indian rupees or foreign currencies for setting up new production facilities, expansion/modernization or upgradation of existing facilities and for acquisition of production equipment or technology. The Bank lays special emphasis on extension of Lines of Credit (LOCs) to overseas entities, national governments, regional financial institutions and commercial banks. The Bank also extends Buyers’ credit and Suppliers’ credit to finance and promote country’s exports. Exim Bank has now in place 268 LOCs, covering 62 countries in Africa, Asia, Latin America and the Commonwealth of Independent States (CIS), with credit commitments of around USD 26.64 billion, available for financing exports from India. The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi, has approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs. 12,195 crore.
The Production Linked Incentive (PLI) Scheme intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order to encourage Make in India. The scheme will also encourage exports of telecom and networking products 'Made in India'. About India Telecom and Networking Products opportunity Globally Telecom and Networking Products exports represent an US$100 billion market opportunity, which can be exploited by India. With support under the scheme, India will augment capacities by attracting large investments from global players and at the same time encourage promising domestic champion companies to seize the emerging opportunities and become big players in the export market. In continuation of "Atmanirbhar Bharat-Strategies for enhancing India's Manufacturing capabilities and enhancing exports", this scheme is part of the umbrella scheme approved by the cabinet in November 2020 for implementation of PLI under various Ministries/ Departments including Department of Telecommunications (DoT). The Cabinet Committee on Economic Affairs, chaired by Prime Minister of india has given its approval for the Minimum Support Price (MSP) of copra for 2021 season. The MSP for Fair Average Quality (FAQ) of milling copra has been increased, by Rs. 10335/- per quintal for 2021 season from Rs. 9960/- per quintal in 2020.
Minimum Support Price (MSP) of copra Minimum Support Price (MSP) of copra recommended by the Commission for Agricultural Costs and Prices (CACP) with approval of Cabinet Committee on Economic Affairs, chaired by Prime Minister. Sources : PIB  The Securities and Exchange Board of India (SEBI) has floated a discussion paper on review of new entrants to set up stock exchanges and depositories, otherwise called as market infrastructure institutions (MIIs).
About Securities and Exchange Board of India (SEBI) The Securities and Exchange Board of India is the regulatory body for securities and commodity market in India under the jurisdiction of Ministry of Finance, Government of India. It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992. About Financial Action Task Force(FATF) The Financial Action Task Force(FATF) is an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. Sources : The Hindu  The Cabinet Committee on Economic Affairs chaired by Prime Minister of India on 30th December 2020 approved Industrial Corridor nodes at Krishnapatnam and Tumakuru of Chennai Bengaluru Industrial Corridor (CBIC).These projects have been planned on the backbone of multi modal connectivity infrastructure. These greenfield industrial cities will be self-sustained with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistic hubs.
About Chennai Bengaluru Industrial Corridor (CBIC) The Chennai Bengaluru Industrial Corridor (CBIC) Project is an upcoming mega infrastructure project of Government of India. Following three nodes were taken up for master planning are
Significance of CBIC
Sources : PIB |