ECONOMY by VIVEK SINGH

2021-02-05 08:23:55 The above is article from PIB on Electronic National Agriculture Market (e-NAM). The following are some relevant points.

1) Earlier, To sell agri produce throuh e-NAM, farmers had to take their produce to APMC mandis and then log in to the electronic platform and sell BUT now it can be sold from FPO collection centres and WDRA registered warehouses also by log in through e-NAM (this was done in April 2020). But still the farmers cannot sell their produce sitting at home (with their produce stocked at home) through e-NAM, this may be done in a year or so.

2) Logistics services has also been integrated with e-NAM for transporting the agri produce and their are various other services which are also being integrated like QC services, transportation & delivery services, sorting/grading services, packaging services, insurance, trade finance, warehouses etc. through the e-NAM platform.

3) Before e-NAM was launched, Karnataka had already a developed electronic platform for sale of agri produce and now that ReMS platform of Govt. of Karnataka is also being integrated with e-NAM

4) 1000 physical APMC mandis have already been integrated and Finance Minister in the Budget announced that 1000 more mandis will be integrated through e-NAM. 1.69 crore farmers and 1.55 lakh traders are registered on e-NAM and Rs 1.22 lakh crore of agre-trade has already been done through e-NAM

All these things are being integrated in the upcoming book. Open / Comment

2021-02-05 08:10:35 Open / Comment

2021-02-04 08:43:05 Budget 2021-22 (just for your information)

1)In the budget which was presented on 1st Feb 2021, there has not been any change in Direct Taxes (Personal Income Tax, Corporate Income Tax, DDT etc.)

2)But there has been certain changes in the Indirect Taxes specifically in "Customs Duty/Import Duty".
And the changes have been made in line with our philosophy of Aatma Nirbhar Bharat and promote more domestic value addition.
The raw materials (customs) duty rate has been reduced and has been kept at low rate. The Intermediate products have been kept at intermediate level of duty. And for the finished goods which are being manufactured in India or we want the Indian companies to manufacture, the duty has been kept at a higher rate, but only up to a certain level and not at a very higher level. This has been the broad philosophy for most of the items.

Budget and Eco Survey Notes will be released on 8th Feb and Book on 15th Feb. Open / Comment

2021-02-04 08:31:50 Source: Hindu
A general article on sustainable growth and development.
Self explanatory Open / Comment

2021-02-03 09:35:03 The above is news from Express. The following are some relevant points.

1) In the budget Govt announced to set up a Bad bank which will be an Asset Reconstruction Company (ARC) where Govt. will not put direct equity (ownership/share) but Public and Private Sector banks will put equity and Govt. may provide Sovereign Guarantee (details are not clear so dont go into it).

2) ARC will purchase the bad debts/loans from the banks and ARC will pay 15% in cash immediately and for 85% it will issue security receipts (paper) (which the banks may be able to encash in future)

3) Govt will set up Development Financial Institution called National Bank for Financing Infrastructure and Development (NaBFID) and it will drive the National Infrastructure Pipeline. Initially Govt. will won the bank but later on it will reduce its stake/ownership to 26% . India Infrastructure Finance Company Limited (IIFCL) which is a 100% Govt. owned company may be merged with NaBFID. For more details on Development Financial Institutions, you can refer this link https://t.me/VivekSingh_Economy/2689

4) The NaBFID will be regulated by RBI. NaBFID will issue bond and raise capital which will be used for financing infrastructure projects. This will also help in development and deepening of (secondary) Bond Market in India Open / Comment

2021-02-03 09:09:30 Open / Comment

2021-02-03 08:46:52 The above is an article from Hindu. The author presents his vies on this year Budget and Eco survey. So, those who have got a feel of budget and Survey may be able to understand that. The following are some relevant points:

1) The Washington Consensus refers to a set of free-market economic policies supported by prominent financial institutions such as the International Monetary Fund, the World Bank, and the U.S. Treasury whose head offices are in Washington. The Consensus also emphasizes on Macroeconomic Stability (Low inflation, low fiscal deficit, low debt, low current account deficit, enough forex reserves etc).

2) Govt. of India since last few years (during Modi rigime) tried for fiscal consolidation [means reducing fiscal deficit (tried for around 3%) and debt (tried reducing it to 40% as per NK Singh committee recommendation) i.e. referred as fiscal orthodoxy in the article]. But in this Budget and Eco survey they have moved away from it and the Survey proposes a higher expenditure to push for growth and this Budget has also said that fiscal deficit is going to be 9.5% 2020-21 and 6.8% in 2021-22 which is quite high.

But this time World Bank and IMF (although supporting Washington Consensus) are also arguing for a departure from fiscal orthodoxy and proposing higher spending after the covid-19 pandemic. Higher fiscal deficit also leads to ratings downgrade, but if Rating agencies are also supporting the view of World Bank and IMF , so they m ay not degrade the rating this time even if our fiscal deficit and debt has shot up.

Both these institutions IMF and World bank proposes that public debt should not go beyond 100% of GDP. (In the second last column they talk about 10% -11% public debt.... I think this is wrong, what I think is author was trying to mention fiscal deficit rather public debt. Our public debt centre and state combined has crossed 70%)

3) The present economic survey has suggested that till the time the growth rate of the economy is higher than the interest rate (cost of borrowing), then the debt/borrowing is sustainable and we do not need to worry. [The same thing I have also mentioned in the present 4th edition of the book page no 118]

4) The author also raises question regarding privatisation of PSUs. When Govt. does large scale privatisation/disinvestment then Indian private companies also purchase the Govt. company assets BUT it is mostly the foreign investors (FDI) which purchase these assets. This will be in contradiction to our push for Aatma Nirbhar Bharat. But as per my view under Aatma Nirbhar Bharat Govt. is already opening sectors for FDI investment and Govt is attracting FDI under Aatma Nirbhar Bharat, so I do not think of any contradiction. Its just that you need to understand the broader vision/philosophy of Aatma Nirbhar Bharat.

5) Govt has earlier targeted to bring down the fiscal deficit to 3% by next year as per FRBM Act, but now its not possible, so Govt. will be amending this ACT. Open / Comment

2021-02-03 08:22:21 Open / Comment

2021-02-02 08:22:40 Good Morning to all of you
There is a lot of news regarding budget in the newspapers today which you can read on your own.

I am reading the Budget and Economic Survey and preparing notes keeping in mind what is relevant for your exam. I will share the PDF in the next 4/5 days and it will also be incorporated in the upcoming Book (15th Feb) at the relevant place in specific chapters so that u do not need to mug up these things rather understand it properly connected with every topic. And if I feel that there are certain topics which are complex then I may record some video also. Till that time you guys focus on your syllabus and of course read todays newspapers so that you get a feel on which things the Govt. (budget) is laying emphasis on for the development of the country. Open / Comment

2021-02-01 07:32:54 Nothing relevant for Economy Today in HINDU/EXPRESS/PIB.
If possible watch the budget speech today live @11.00 am Open / Comment