Daily Current Capsules - 05th JULY

2019

Economic Survey 2018-19

Know! the key highlights ( Part -I )

Economic Survey 2019: The Economic Survey 2019 tabled in the Parliament a

day ahead of general budget 2019 has predicted the GDP growth to get

stronger as it pegged 7 per cent growth for FY20, up from 6.8 per cent in the

previous fiscal.

1. Investment the "key driver" of simultaneous growth in demand, jobs,

exports & productivity.

2. In an unpredictable world, policymaking needs three key elements- Clear

vision, strategic blueprint to achieve the vision and tactical tools for

constant recalibration based on real time data. The data must be created

as a public good “of the people, by the people, for the people”.

3. Indian MSMEs need to be freed from shackles that convert them into

dwarfs. MSMEs need to be seen as a source of innovation, growth and

job creation.

4. Economic Survey 2019 highlights that enabling behaviour change is

simplest way to change gender equations, business culture, sanitation

culture, health culture and so on.

5. One of the biggest hurdles for India to become a 5 trillion economy is

poor enforcement of contracts and dispute resolution. Steps need to be

taken to speed up legal process.India needs to sustain a GDP growth rate

of 8% to become a $5 trillion economy by 2025.

Other key highlights

GDP growth for 2019-20 at 7 per cent

Must sustain 8 per cent GDP growth to become $8 trillion economy by

2025.

Accommodative MPC policy to help cut real lending rates

Oil prices to decline in FY20 from current levels

Stress in NBFC sector also a reason behind FY19 growth slowdown

Fall in NPAs should push capex cycle

January March slowdown due to general elections related uncertainties

Investment rate appears to have bottomed out

The fiscal deficit estimate for FY19 retained at 3.4 per cent of the GDP,

same as projected in the interim Budget.

The political stability expected to push growth.

Farmers may have produced less in FY19 on fall in food prices

Rise in rural wage growth seen since mid-2018

Top policymakers must ensure actions are predictable

Rural ages seem to have bottomed out

US-Iran sanction for oil import likely to have impact on oil prices,

petroleum subsidy

Investment a key driver, focus on SMEs key

Savings must increase more than investments for accumulation of

precautionary savings

Savings and growth are positively co-related

Aggressive export strategy must be part of investment-driven model

Could be an upward pressure on crude oil prices as global economic growth

grows

Liquidity systematically tight since September 2018, impacting bond yields

Government Schemes

UGC launches STRIDE scheme with view to boost research culture in universities

Relevance IN – Prelims ( about STRIDE ) + Mains ( GS II issues relating

to development and management social sector/services relating to

education and human resource)

What’s the NEWS

University Grants Commission launched STRIDE scheme aimed at

strengthening research culture and innovation in universities and

colleges of the country.

Know! more about STRIDE

STRIDE scheme will strengthen research culture and innovation in

colleges and universities and help students and faculty to contribute

towards India’s developing economy with help of collaborative

research.

‘Scheme for Trans-disciplinary Research for India’s Developing

Economy’ (STRIDE), aims to “ identify young talent, strengthen

research culture, build capacity, promote innovation and support

trans-disciplinary research for India’s developing economy and

national development.”

The scheme also seeks to fund high impact research projects in

Humanities and Social Sciences.

The scheme has three components- first is to identify young talent

and providing research capacity building in diverse disciplines by

mentoring, nurturing and supporting young talents to innovate

solutions for local, regional, national and global problems. This

component is open to all disciplines for a grant up to Rs 1 crore.

The second component of the scheme is to enhance problem-solving

skills with the help of social innovation and action research to

improve well being of people and contribute to India’s developing

economy.

Collaborations between universities, government, voluntary

organisations, and industries are encouraged under this scheme. This

component is also open to all disciplines for grant up to 50 lakh-1

crore.

The final component involves funding high impact research projects

in the field of identified thrust areas in humanities and human

sciences through a national network of eminent scientists from

leading institutions.

This component is only open to specific disciplines with a possible

grant of up to Rs 2 lakhs to developing a proposal.

To oversee the entire scheme, an advisory committee has been set up

by the UGC under the chairmanship of Professor Bhushan

Patwardhan.

Bilateral Relations

United States Senate passes provision to give India status of NATO ally

Relevance IN – Prelims ( about NDAA and about US – India relations) + Mains

( GS II bilateral relations)

What’s the NEWS

The United States Senate has passed a legislative provision that brings

India on par with America’s allies like South Korea, Australia, Israel and

Japan in the North Atlantic Treaty Organisation

This will increase defence cooperation between the United States and

India.

Know! about NDAA

The National Defense Authorisation Act, or NDAA, for the financial year

2019-’20 was passed by the United States Senate

The amendment provides increased cooperation between the United

States and India in the areas of humanitarian assistance, counter-

terrorism, counter-piracy and maritime security in the Indian Ocean.

The legislative provision called National Defense Authorisation Act (or

NDAA) for fiscal year 2020 was passed by Senate in late June

NDAA provides for increased US-India Defence cooperation in Indian

Ocean in areas of counter-piracy, counter-terrorism, humanitarian

assistance and maritime security

The move came after Prime Minister Narendra Modi’s meeting with

United States President Donald Trump ahead of the opening of the G20

summit in Osaka, Japan, on June 28.

Know! more about Indo – US relations

In July 2018, the Trump administration had granted Strategic Trade

Authorization Tier 1 status to India, which is largely accorded to NATO

allies. The move identified India’s growing status as a US defence

partner.

This made India the only South Asian nation to be given the said

designation along with US’ NATO allies. This move would ease export

controls for high technology product sales to India.

In 2016, India was recognised as a “Major Defence Partner” by the

United States. This allowed India to buy more advanced and sensitive

technologies that is on par with that of US’ closest allies and partners.

Disaster Management

NDMA conducts workshop on Glacial Hazards and Risks

Relevance IN – Prelims ( about glacial lake outburst floods) + Mains ( GS III

disaster management)

What’s the NEWS

National Disaster Management Authority in partnership with Swiss

Agency for Development and Cooperation (SDC) is organizing a two-day

brainstorming meeting on the assessment and management of glacial

risks, particularly glacial lake outburst floods (GLOFs).

Know! about the meeting and GLOFs

GLOFs refer to the sudden discharge of a water reservoir that has formed

either underneath, at the side, in front, within, or on the surface of a

glacier. As was evident during the 2013 Kedarnath disaster, the resulting

impacts on communities and infrastructure can be catastrophic.

Glaciers and permafrost environments are changing rapidly across the

Indian Himalayan Region, giving rise to threats such as GLOFs.

The region is particularly sensitive to changes in global climate, and with

residential, tourism and hydropower infrastructure expanding higher into

alpine valleys, there is a clear need for the assessment and management

of glacial hazards to be mainstreamed into major policies.

Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and

Arunachal Pradesh are the most vulnerable States to glacial hazards.

What’s the way forward

The fragile mountain ecosystem in the Indian Himalayan Region is under

tremendous stress of climate change and land use degradation

The web-based early warning alarm GLOF Hazard Management System t

have set up in Sikkim.

The various stakeholder Central agencies are monitoring glacial lakes and

water bodies in the Himalayan region but a lot of work is yet to be done

in glacial risk management.

There is need for enhancing the capacity of State administration and

local communities to adapt to the changing climatic regime.

Government Scheme

Invest India Programme (a comprehensive view)

Relevance IN – Prelims (about Invest India programme) + Mains ( GS III

economic development)

Know! all about Invest India Programme

It is the National Investment Promotion and Facilitation Agency of India

and act as the first point of reference for investors in India.

As the national investment promotion and facilitation agency, Invest

India focuses on sector-specific investor targeting and development of

new partnerships to enable sustainable investments in India.

In addition to a core team that focuses on sustainable investments, Invest

India also partners with substantial investment promotion agencies and

multilateral organizations.

Invest India also actively works with several Indian states to build

capacity as well as bring in global best practices in investment targeting,

promotion and facilitation areas.

Invest India, set up in 2009, is a non-profit venture under the Department

for Promotion of Industry and Internal Trade, Ministry of Commerce and

Industry, Government of India.

Invest India was formed in 2009 under Section 25 of the Companies Act

1956 for promotion of foreign investment with 49% equity of the then

Department of Industrial Policy and Promotion, Ministry of Commerce

and Industry and 51% shareholding by FICCI.

The current shareholding pattern of Invest India is 51 % of Industry

Associations (i.e. 17% each of FICCI, CII & NASSCOM) and the

remaining 49% of Central and 19 State Governments.

Know! the different roles of Invest India

It actively working with several Indian States to build capacity and

strengthen existing Investment Promotion Agencies as well as bring in

global best practices in investment targeting, promotion and facilitation

areas.

Working with State Investment Promotion Agencies: Invest India

plays a central role in ensuring that FDI is on the agenda of all State

agencies, State Governments and stakeholders, highlighting the

substantial economic and social benefits which can be accrued locally

from FDI.

Startups: Startup India is a flagship initiative of the Government of

India, intended to build a strong eco-system for nurturing innovation and

Startups in the country that will drive sustainable economic growth and

generate large scale employment opportunities.

The Department for Promotion of Industry and Internal Trade with the

help of Invest India aims to empower Startups to grow through

innovation and design through this intiative.

Accelerating Growth of New India’s Innovations (AGNIi): It aims to

support the ongoing efforts to boost the innovation ecosystem in the

country by connecting innovators across industry, individuals and the

grassroots to the market and helping commercialise their innovative

solutions.

Invest India provide a platform for innovators to bring their market

ready products and solutions to industry thereby helping propel India

into a new era of inclusive economic growth.

India Investment Grid: India Investment Grid (IIG) is an online

platform to showcase investment opportunities in India to global

investors. The platform is looked after by Invest India.

Reforms in FDI Policy

The efforts of Invest India and measures taken by the Government on FDI

policy liberalization along with improvement in ease of doing business

climate have resulted in unprecedented growth of total FDI inflows.

India has recorded USD 64.38 billion FDI inflow in the year 2018-19

which is an increase of 78.6% over financial year 2013-14 when total FDI

inflow was USD 36.05 billion.

Role of DPIIT

Department for Promotion of Industry and Internal Trade conducts

regular review of the performance of Invest India.

Further, the Board of Directors, under chairmanship of Secretary,

Department for Promotion of Industry and Internal Trade, including

nominees from Government of India, FICCI, CII and NASSCOM

manages and oversee the overall operations, direction and strategy of the

company.

Agriculture & Farmers Welfare

Agriculture Ministry signs a SoI with IBM for pilot study to utilize Artificial Intelligence & Weather Technology solutions in agriculture

Relevance IN – Prelims 9 facts regarding the SoI ) + Mains ( GS III e-

technology in the aid of farmers)

What’s the NEWS

Ministry of Agriculture and Farmers Welfare signed a Statement of Intent

(SoI) for undertaking a pilot study in 3 districts of Bhopal, Rajkot and

Nanded in the States of Madhya Pradesh, Gujarat and Maharashtra

respectively, with IBM

Know! more about the SoI

IBM’s Watson Decision Platform will give solution in the field of

agriculture through Artificial Intelligence (AI) and weather technology at

village level/ farm level to provide weather forecast and soil moisture

information on pro bono basis to help farmers for taking decisions

regarding water and crop management for better production and

productivity.

Towards achieving the goal of doubling the farmers’ income the

Ministry’s assurance to bring digital technologies to help our farmers to

increase their income and transform Indian agriculture.

The Minister also added that enabling use of next-generation technologies

such as AI and advanced weather data for better insights to make faster

and more informed agricultural decisions is a testament to our

commitment.

As part of the collaboration, IBM Watson Decision Platform for

Agriculture will be leveraged to obtain farm level weather forecast

and village level soil moisture in three districts in Central & Western

India. This pilot study will be conducted for the Kharif crop season 2019.

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