Examrace Examrace 289K Login & Manage Yojana May 2017 Comprehensive Summary / Gist: Transforming India (Download PDF) (November 22, 2017) The story of a New India: India is the global geopolitical economic landscape. India is the third largest economy. It is a robust, fast growing market for goods and service. Government and central bank to cut tax rates and interest rates. Find this video at: https://www.youtube.com/video/vskgi8slaeo Yojana May 2017 Summary: Transforming India (In English) Resurgent India: Demonetization of Rs. 500 and Rs. 1000 notes. Impactful step taken to curb black money and corruption. Tax evasion and income declaration scheme mobilized Rs. 65000 crore of tax revenue. Digital India: Aim: Cashless Transaction and Converting India into Cash-less Economy. BHIM app launched to facilitate digital transaction. 1.5 Crore people have adopted BHIM app in 2 months. 30 crore Rupay debit cards issued Inclusive India: Aim: Subsidy Reforms. World s largest Direct benefits program This scheme saved government Rs. 22, 000 cr on LPG subsidy DBT transfer or PAHAL world s largest program 28.13 Crore Jan Dhan account opened Incorruptible India: PAHAL scheme Give it Up campaign to encouraged customers 65 lakh new LPG connections Investor-friendly India: Making India a global manufacturing Hub and increased foreign investment FDI of $3.35 billion in 2017, investment increased 46% Transformational India: Create a nationwide market for goods and services (GST), higher protection from imports. 1 of 16
Clean India: More than 4 crore toilets constructed in 573 cities. 1, 88, 008 villages, 130 district have been declared Open Defecation Free (ODF). Communication India: Mann ki baat program on all India Radio. Skill India: Kaushal Barat, Kushal Bharat Transparent India: Minimum government, Maximum governance. Caring India: International Yoga Day. Transforming India: Schemes Emerging India: Building strategic tie with newly emerging countries in Central Asia and Africa. First Largest Private Investment: 1. Over 352 housing project in 53 cities in 17 states. 2. Investment of Rs. 38, 000 crore to build 2-lakh houses. 3. PMAY (Urban) - June 25, 2015 - approved 17.73 lakh houses for urban poor with investment of Rs. 95, 660 cr for 30 states The Swachh Bharat Mission (SBM) Launched in October 2014, achieve ODF India by 2019 (Oct 2) Lot of momentum build up to implement this project. Sanitation coverage in rural India - from 42 % to 63 %. Ministry of Drinking and Water and Sanitations supports the state for better implementation of Swachh Bharat Mission. Swachh Shakti event on women s day 600 women Sarpanch. Other flagship program like Beti Bachao, Beti Padhao. Effective Solid and Liquid Waste Management (SLWM) Village Swachhta Index has been developed by MDWS. Transforming lives through Livelihoods Rural development key to sustainable economic growth and human development. Rural poverty has many dimensions homeless, uneducated, asset less, poor health Rs. 1 lakh crore spent annually for poor households in rural areas. Rs. 3-4 lakh crore are spent rural area if we add up the Budgets of all departments and state governments spent in those regions. 2 of 16
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). 1. 31-lakh woman Self Help Groups and 3.6 crore women are part of the mission. Rural Development Program 2016-2027: Construction of Pradhan Mantri Gram Sadak Yojana (PMGSY) roads from: Kilometer Day Year 73.5kms Per day 2011-2014 100km Per day 2014-2016 130kms Per day 2016-2017 47, 350 kms of PMGSY road & 11, 614 habitations connected - 2016-2017 4, 113.13 kms of PMGSY road ( Green technologies ) - 2016-2017 T C S R D 2016-2027 After PMAY-G launched in 2016: State reported completion of 32.14 lakh houses. Under MGNREGS: 52 lakh of work completed in 2016-2017. 88 lakh assets geotagged for the first time under MGNREGS. Pradhan Mantri Awaas Yojana Gramin (PMAY-G): 47, 350 kms. of road constructed during 2016-17. 11, 614 habitations provided connectivity by construction. Constructed using Green technologies in 2016-17. Pradhan Mantri Awaas Yojana Gramin (PMAY-G) Form House to Homes: Launched: November, 2016. Designed to meet the need and aspirations of households. Madhya Pradesh, Rajasthan, Maharashtra, Chhattisgarh, Karnataka, Assam, West Bengal, Utter Pradesh taken lead in the implementation of the PMAY-G. 3 of 16
DAY-NRLM Transforming Lives Through Livelihood Thrust: Deen Dayal Antyodaya Yojana- National rural livelihood mission (DAY-NRLM). Making a difference to live and livelihood of over 3.6 crore households. 30 lakh women farmers supported under MKSP to promote sustainable agricultural practices. Women Self Help Group (SHDs) led Custom Hiring Centres (CHCs) for agricultural implements. 1st National evaluation of DAY-NRLM completed by the Institute of Rural Management Anand (IRMA). Agricultural Inputs Towards National Growth Government system, institutions, private sector industries and business invest and contribute to agricultural growth. Development of new agro-industries and agri businesses. HYV seeds, fertilizers and irrigation to boost food production. Natural resources, science and technology are major drivers for the modernization of agriculture. Growth rate of agricultural tractors 2014-15 is 4.25%. Irrigated Area by Source of Irrigation: 4 of 16
Image of Irrigated Area by Source of Irrigation Seeds: Increase 8.4 % per year from 1990-91 to 2013-14. Growth from 2000-01 to 2010-11: Pulses 17%, Oilseeds 16%. Fertilizers: Rate 4.5 % from 55 million tons in 1980-81 to 255 million tons in 2014-15. Fertilizer consumption: 5 of 16
Pesticides: Image of Fertilizer Consumption Consumption: Risen to 50 thousand tons in 2013-14. Growth rate: -0.82% & slightly negative after 2010-11. Registering a Robust Growth: Growth 2016-17: 7.1% Global Competitiveness Index (GCI) prepared by World Economic Forum for 138 countries. India ranked 39 in 2016-17. Achievement of Indian economy in different sectors and rolling out of historic Indirect tax reform. Fiscal situation: 3.2 % of GDP in 2017-18. Average of CPI inflation: 3.7 % up to February 2017. 6 of 16
RBI fixed inflation target of 4 % tolerance +/ 2 % for period from 5 th August, 2016 to 31 st March, 2021. Trade: India s exports declined 15.5 % in 2015-16. During 2016-17, exports registering growth 2.5 % to US $245.4 billion from US $239.4 billion in 2015-16. Highest India s trade deficit: US $190.3 billion in 2012-13. Balance of Payment: Progress for Current account deficit (CAD) US $22.2 billion (1.1 % of GDP) in 2015-16. Foreign Investment: Foreign portfolio investment Increased to US $8.2 billion in first half of 2016-17. Foreign Exchange Reserves: US $363.0 billion at end -January 2017. Exchange Rate of Rupee: Average monthly exchange rate of rupee for 2016-17 was Rs. 67.2 per US dollar. (Depreciation of 2.8 % over previous year) Real Effective Exchange Rate (REER) - appreciation of 1.7 % in 2016-17 compared to 2015-16. External Debt: Ratio of India s external debt stock to gross national income (GNI) at 23.4 % was the fifth lowest. Foreign exchange reserve to external debt India s position was 6 th highest at 69.7%. Agriculture and Food Management: Production of total food grains estimated at 271.98 million ton during 2016-17. Industrial Sector: Growth in Gross Value Added (GVA) from manufacturing sector was 7.7 % in 2016-17. Towards Cleaner Cooking Fuel: Launch by Pradhan Mantri Ujjawala Yojana (PMUY) on1st May 2016 in Ballia, Uttar Pradesh. 5cr LPG connection provided to BPL families. Top 5 state with maximum connection: 7 of 16
Image of 5 State with Maximum Connection Towards a Clean and Transparent Economy Black money generated through tax evasion is an economic challenge. Transparency is the most important prerequisite for secular economic growth. Towards a Clean Economy: India s Tax GDP Ratio: 16.6 % with Tax Base of 5.5 Crore Persons Economic Survey 2016-17: India has 7 taxpayers for every 100 voters. Tax Administration for a Clean Economy: Social Investigation Team (SIT), Multi-Agency Group (MAG), The Black Money and Imposition of Tax Act, 2015 imprisonment for 3-10 years under Prevention of Money Laundering Act 8, 186 crore illegally kept in offshore banks Sign Double Taxation Avoidance Agreement 8 of 16
Bring foreign investment by Participatory notes Budget 2017-18 Transform, Energies and Clean India Upto Rs. 10, 000 cash expenditure allowed as deduction to business. Charitable trusts can receive cash donation Rs. 2, 000. Aadhaar has mandatory for filling of income tax return as well as for obtaining and retaining the PAN. Demonetization: High denomination currency of Rs. 500 and Rs. 1000 affected the roots of corruption. Aims: Countering fake currencies, greater digitalization of economy, increased flow of financial saving Digital Economy: 98 % of all transaction by volume and 68 % of total value of transaction are conducted in cash in India. Demonetization given quantum push to digital transaction. Government has mandated the linking of PAN with Aadhaar. Compulsory Aadhaar authentication for cash transaction beyond Rs. 50, 000. Good and Services Tax (GST): Aimed at simplifying the complicated indirect tax regime. Create a common Indian market, boost investment and growth. Passing of four bills related to GST in the Parliament. Electoral Funding reforms: Political parties received Rs. 7, 833 cr from unknown sources between 2004-05 and 2014-15. Bypassing Corruption: This Scheme Resulting in Massive Leakages and Lining the Pockets of Undeserving. Used Direct benefits Transfer (DBT) to transfer the money. Unfinished Agenda: Promote seamless coordination Reduce human interface Prevention of misuse of legal persons (shell companies) Requiring financial institute 9 of 16
Simplification of tax laws and procedures Infrastructure Initiatives for the North East: Development of optimal infrastructure and communication links within the region and with the rest of India. Ministry of Railways: Sanctioned 2 new rail doubling projects Ministry of Power: Comprehensive scheme for strengthening of transmission & distribution systems in Arunachal Pradesh and Sikkim. Under NLCPR scheme Ministry of DoNER sanctioned 169 projects at an approved cost of Rs. 2791.44 cr. North Eastern Council sanctioned 41 projects at an approved cost of Rs. 500.582 cr. Transforming India into a Digitally Empowered Society Need of Digital India Program: 1. To become a global emerging economy. 2. Faster evolution of Information technology (IT). 3. Bring to the centre-stage of governance for all citizens, rich and poor. What Drives Digital India Program? 1. Government facilitate the Indian villagers to be digitally connected by broadband and high speed internet. 2. 1st vision: Digital infrastructure as core utility to every citizen. 3. 2ndvision: Governance and service on demand. 4. 3rd vision: Digital empowerment of citizens. Building Block of Digital India Program: 10 of 16
Image of Building Block of Digital India Program Digital India Initiatives for Good Governance: Digi Dhan Abhiyan, Aadhaar Pay, BHIM, CSC, Digi Locker, Disha, Direct Benefit Transfer, e- Panchayat. Government simultaneously came out with digital payment platform like Bharat Interface for Money (BHIM). 1.13 billion Indian citizen possess an Aadhaar card. Above 40 lakh digital locker created by citizens. Digital India Program Budget 2017-18: Targets 2, 500 crore digital transaction for 2017-18. 11 of 16
Digital payment platform: UPI, USSD, Aadhaar Pay, IMPS, debit/credit card. Digital Innovations in Public Finance Benefits of Digitalization in public finance: Helps the government to identify beneficiaries correctly. Help in removal of ghost beneficiaries. Helped to transfer the benefits of welfare programs to the extent of: 1. 41 % in MGNREGS 2. 37 % in PAHAL (LPG subsidy) 3. 14 % in National Social Assistance Program (NSAP) 4. 7 % in national scholarship schemes Use of Jan Dhan Accounts, Aadhaar cards and Mobile banking (JAM trinity) helped India take a step closer to the digital revolution. Digitalization in Public Finance (in Crores) Bank name Rural Urban Total No. of RuPay Cards Aadhaar Seeded Balance in Accounts Public sector 12.32 10.22 22.54 17.58 14.93 49266.04 Regional Rural 3.97 0.66 4.63 3.53 2.76 11708.05 Private 0.55 0.37 0.91 0.84 0.44 2127.40 Total 16.84 11.24 28.08 21.95 18.13 63101.49 T C S D P F Economic Survey in 2015-16: 210 million Aadhaar cards created at rate of 4 million cards per week. 975 million people hold an Aadhaar card. Direct Benefit Transfer of LPG (DBTL) scheme PAHAL was re-launched in 2014. 12 of 16
Benefit the consumers of LPG cylinders directly and subsidy receive directly in their bank account. Total cash transfer amount under PAHAL: Rs. 45412 cr. Subsidy management system and in promoting financial inclusion is leading to efficient utilization of resources. India need to maintain fiscal deficit below 3 % of GDP. Step for Sound Fiscal Management Decline in Fiscal deficit: 4.5 % in 2013-14 to 4.1 % in 2014-15, 3.9 % in 2015-16 and 3.5 % in 2016-17. Restrict fiscal deficit to 3 % in 2018-19. 7 Issues of Fiscal Management Policy 1) Auction of coal and various minerals and spectrum 2) JAM Trinity 3) Good and Services Tax (GST) 4) Outcome Budget 5) Reclassification of the expenditure 6) Merger of Railway budget with general budget 7) Advancement of budget date 1) Auction of coal and various minerals and spectrum: 82 coal mines allocated by way of auction/allotment. 1. 31 coal mines by e-auction 2. 51 coal mines by allotment 21 mineral blocks successfully auctioned. Spectrum, where auction has given good results. 2) Jan Dhan Aadhaar and Mobile (JAM) Trinity: JAM provides human face to it. Government spends trillions of rupees every year on welfare schemes, one of the tool of such expenditure is subsidy. Government provides subsidy in wide range of product. 13 of 16
Jan Dhan: Provide bank account for every household. Aadhaar: Linking the Aadhaar number to bank account is the key to implementing income transfer. Mobile: Provide financial system digital platform, Use for financial transaction. 3) Good and Services Tax (GST): New indirect tax regime from July 1, 2017 - GST. Need to build a mechanism for ease of doing business. Aims to provide a uniform taxation structure in India. Indirect tax GDP ratio: Around 5.2 % in 2015-16. 4) Outcome Budget: Outcomes are the collective results or qualitative improvement brought about in delivery of these service. Expressed in terms of improvement over earlier indicators and benchmarks. 5) Reclassification of the Expenditure: All expenditure will be categorised as Capital and Revenue. 6) Merger of Railways budget with central budget: Reduce the procedural requirement, save approx. Rs. 9700 cr annual dividend to government of India. 7) Advancement of Budget date: This year budget presented on February 1 and entire process completed by March 31. Skill Development and Empowering Youth Youth are change maker, open to expectations, new idea generators and engine of growth. Government launched various initiatives to create employment and encourage entrepreneurship among youth. Make in India: Aims to transform India into a global manufacturing hub. Identified 25 sectors with different skill set. Make India a competitive market and global production centre. Skill India: New high tech job require highly skill training. Need to properly train youth in response to changing pattern of employment. Innovation, Incubators, Start-ups and Stand up Ecosystem: 14 of 16
Diversity breeds Innovation. Incubators important to start ups, they give them space to work. In India more than 10, 000 start-ups are projected. Stand up India scheme dedicated to women and members of SC/ST to promote entrepreneurship projects. Unleashing the Power of Youth: Empowerment and capacity building of youth is catalyst to the admirable initiatives of government of India. ESAMPARK Mechanism to connect government directly with citizens in India mailer, outbound dialer and SMS campaign Launched: May, 2016 by Government of India Introduced to establish proactive communication by digitalization of campaigns. Benefits: Improve the efficiency of communication. Extensive structured database of government. Increased awareness among citizens. Ease of Doing Business: Challenges and Way Forward Ease of Doing Business: EoDB 7 parameters India s poor performance on the EoDB, it currently ranks 130 out of 190 countries. DB is based out of only 2 cities: Delhi and Mumbai. 1st assessment of reforms (2015): 98 parameters, 32states/UTs. 2nd assessment reforms: 340 parameters covering 36 states/uts. 2nd assessment result: 31 Oct. 2016 available on DIPP portal. 2nd assessment based on 10 broad indicators of EoDB. State s Business Reform Analysis: National average score of 1 st and 2 nd survey: 48.9% Sharp improvement in 2 nd survey compared to 1 st survey: 1. Telangana (From 12 to 2 rank) 15 of 16
2. Haryana (From 14 to 6) 3. Uttarakhand (From 23 to 9) 4. Punjab (From 16 to 12) 5. Bihar (From 23 to 9) Gujarat slipped down (From 1 to 3 rank) Overall improvement but reforms need to be sustained and dynamic. Several state doing well: 18 states performed doing well. Can do much better: Commercial dispute resolution enablers and availability of land showed scope for improvement. Many states at bottom: 18 states performed extremely poorly. Delhi Lagging behind: Delhi score 48 % and 19 th rank even though not expected to be one of leading manufacturing producers. Industry s perceptions: Flow of information from industry to government in the survey is missing. Spreading best practices: Maximum number of state scoring 90-100% To bridge the gap between advance and laggard states on EoDB. Competitiveness: Ranking EoDB Indicators Quartiles of scores Scoring between 90-0 - 25-50 - 75-100 (%) 25 50 75 100 (%) (%) (%) (%) Top 3 states (Scoring 90-100 %) Access to Information and transparency enablers 15 5 1 15 19 Uttarakhand, Rajasthan, West Bengal Single Window 19 3 2 12 17 Haryana, Uttarakhand, Punjab Availability of land 15 5 7 9 16 16 of 16