Economic Survey Volume 2-Analysis (Part 3) By Shyam S Kaggod

Transcription

1 Economic Survey Volume 2-Analysis (Part 3) By Shyam S Kaggod

2 The chapters that will be covered Chapter 1 - State of the economy an overview Chapter 2 - Fiscal Developments Chapter 3 - Monetary Management and Financial Intermediation Chapter 4 - Prices & Inflation Chapter 5 - Climate Change, Sustainable Development and Energy Chapter 6 - External Sector Chapter 7 - Agriculture and Food Management Chapter 8 - Industry and Infrastructure Chapter 9 - Services Sector Chapter 10 - Social Infrastructure, Employment and Human Development

3 Chapter 5 Climate change, Sustainable Development and Energy Ch-5 India and PCA USA has announced its withdrawal from PCA It becomes the third country (Syria and Nicaragua) India ratified the PCA on 2 nd October 2016

4 International Solar Alliance Ch-5

5 India and Energy Majority of the energy supplied comes from the coal/thermal India has set an ambitious target of generating 175 GW of RE by 2022 Ch-5

6 India and Energy Ch-5

7 Ch-5

8 Ch-5 But! Deprivation Those who do not have access Those who do not access to secure energy

9 Use of Electricity Ch-5

10 Ch-5 Initiatives of the government UJJWALA Scheme (PMUY - Pradhan Mantri UJJWALA Scheme) UJJWALA Plus Scheme PAHAL/DBTL DDUGJY

11 UJJWALA Scheme Ch-5

12 Ch-5 Thermal Vs Renewable Social Cost Analysis Private costs

13 Ch-5 Thermal Vs Renewable Social Cost Analysis Social cost of carbon / Shadow price of carbon Health Costs Cost of Intermittency Opportunity cost of the land Cost of stranded assets Cost of the government incentives

14 Cost of the government incentives Ch-5

15 Thermal Vs Renewable Social Cost Analysis Ch-5

16 Thermal Vs Renewable Social Cost Analysis Ch-5

17 Ch-5 Green Initiatives of the government NAPCC (National Action Plan on Climate Change) NGCO (National Green Corridor Programme) NGHM (National Green Highways Mission) FAME (Faster Adoption of Hybrid and Electrical Vehicles)

18 NAPCC Ch-5

19 Ch-7 Chapter 7 Agriculture & Food Management Status of agriculture Majority of agriculture is rain dependent Land fragmentation Farmers are price takers Marginal farmers go for mixed farming Indebtedness

20 Risks in Agriculture Ch-7 Production Risks Soil Health Card DBT in Fertilizers Weather related environmental risks Micro-Irrigation PMFBY Credit risks Informal credit Interest Subvention Scheme Price risks, Market and Policy Risks Supply, demand and price volatility Price stabilization Fund e-nam Model APMC Act Agriculture Produce trading and Development Act 2017

21 Ch-7 Food Management NFSA (National Food Security Act) 2013 DCP (Decentralized Procurement Scheme) OMSS (Open Market Sale Scheme) Food Subsidy Buffer Stocks

22 Chapter 8 Industry & Infrastructure Ch-8 IIP

23 Time bound closure of CPSEs Ch-8

24 Civil Aviation Though there is a huge potential, India has not been able to capture the market ASK (Available Seat Kilometers) of India is 38% The domestic airlines could carry only 36% of international traffic (to and from India) Ch-8

25 Civil Aviation The reasons for such outcome ASA (Air Service Agreements) Ch-8 6 th Freedom of Air 5/20 rule (changed to 0/20 rule) Lesser wide bodied aircrafts Civil Aviation Way Out Privatization of Air India Relook at 0/20 rule UDAN

26 Civil Aviation 6 th Freedom Ch-8

27 UDAN Ude Desh ka Aam Naagrik Ch-8

28 Ports - National Waterways-Advantages Ch-8 Highways Railways Inland Waterways Movement (1 HP) 150 kgs 500 kgs 4000 kgs Efficiency of 1 ltr fuel 24 tkm 85 tkm 105 tkm Cost of development High Comparatively lesser than roadways Lowest among three Cost of transportation Rs 2.50/km Rs 1.50/km 25 paisa/km Carbon footprint high Comparatively lesser than roadways Lowest (50% of that of emission of trucks)

29 Ch-8 Ports - Waterways India Vs China China India Length of navigable water Over 1,00,000 Kms Around 14,500 Kms Transportation through waterways 47% 03% Number of vessels Over 2,00,000 Over 1,000 Carrying capacity in a single voyage Around 40,000 tonnes Around 1,500 tonnes

30 Ch-8 Power UDAY State government to take up 75% of the debt of the discoms (50% in first year and 25% in the second year) The state government can issue bonds in the market Future losses to be taken in a graded manner Banks to stop issuing advances for discoms to finance their losses

31 Ch-8 Power - UDAY (contd ) Targets AT&C losses must be brought down to 15% by The gap between average cost and tariff must be bridged Benefits to states Receive additional benefits from the central government Additional/priority funding through certain schemes Supply of additional coal at specified prices Procurement of low cost power Worry for the states-increase in the fiscal deficit

32 Ch-8 Power UDAY - Evaluation 27 states/uts have signed up for UDAY 15 states have issued UDAY bonds Many of the states have revised their tariffs The FD of the states has reached to 3.6% (it could have been 2.9% if UDAY was not implemented)

33 Power UDAY - Evaluation Ch-8

34 Petroleum and Natural Gas Ch-8 HELP (Hydrocarbon Exploration and Licensing Policy) Uniform License Open Acreage Policy Change in revenue sharing model (profit sharing to revenue sharing) Freedom to price Discovered Small Fields Policy Production to start at the earliest in the discovered blocks New revenue sharing model 100% FDI Single license PAHAL/DBTL PMUY (Pradhan Mantri Ujjwala Yojana)

35 Ch-9 Chapter 9 Services Sector TFS (Trade Facilitation in Services) It is a proposal on the similar lines of TFA (Trade Facilitation Agreement) Some of the proposals under TFS are Social security portability Visa fees must be transparent, reasonable and non-restrictive Single window mechanism for foreign investment mechanism Cross-border insurance to boost medical tourism All modes of service supply in cross-border trade must be covered

36 Ch-9 Tourism In case of tourism, India has not been able to perform

37 Tourism Ch-9

38 Tourism World Heritage Sites

39 Ch-9 Tourism - Initiatives e-visa Swachh Paryatan App Tourist Infoline

40 Real Estate Reforms RERA Ch-9

41 Real Estate Reforms Benami Transactions (Prohibition) Amendment Act 2016 Ch-9 Was introduced in Lok Sabha in May 2015 The Bill seeks to amend the Benami Transactions Act, 1988 The Act prohibits benami transactions and provides for confiscating benami properties The amended definition will include If the transaction is made in a fictitious name The owner is not aware of denies knowledge of the ownership of the property The person providing the consideration for the property is not traceable.

42 Real Estate Reforms Benami Transactions (Prohibition) Amendment Act 2016 (Contd ) Ch-9 The act establishes four authorities to conduct inquiries or investigations regarding benami transactions Initiating Officer Approving Authority Adjudicating Authority Administrator Appellate Tribunal Penalty Provisions

43 Chapter 10 Social Infrastructure, Employment and Human Development Ch-10 Education Primary Education Secondary Education Higher Education

44 Primary Education Ch-10

45 Education Programme Interventions Ch-10

46 Health Ch-10 National Health Policy 2017 Promote universal access to quality healthcare Increase the public spending to 2.5% of GDP by 2025 Create PHMC (Public Health Management Cadre) Intervention at early detection from the childhood National Healthcare Standards Organization To increase the life expectancy to 70 years (presently 67.5 years) To promote local production/manufacturing incentives will be provided Indigenous medical equipment and technology to reduce costs In terms of remedies-providing multiple options such as AAYUSH Provide redressal mechanism-tribunals

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