ECONOMY
Badhta Bharat- Ubharata Bharat
DEMONETISATION
DIGITAL PAYMENT PROMOTION & LESS CASH ECONOMY
· Mera mobile mera bank mera batua: BHIM app (based on United Payments Interface(UPI)), to promote cashless economy brings payments to people’s phones
· 125 lakh people have adopted the BHIM app so far. Total transactions in BHIM App is nearly 50 lakhs & amount transacted is Rs. 1407 cr since 30th December, 2016
· BHP –AADHAR Platform launched by PM on 14th April ,2017 on Ambedkar Jayanti at Nagpur
· Cash incentives to promote digital payments – Lucky Grahak Yojana and Digi DhanVyapar Yojana
· Aadhar enabled Payment system in place to promote less cash economy
· Target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and Rupay debit cards
· Provisions being made for sufficient number of PoS Terminals
- As on 19th March 2017, more than 11 Lakh Point of Sale (PoS) have been deployed against the target of 10 Lakh PoS deployment by banks before 31st March, 2017
- Payments Regulatory Board to be set up within RBI
- Digital Jagriti Program
- More than 2 Crore citizens trained on usage of electronic modes of payments since 2nd December, 2016
- Supported in on-boarding more than 16 lakh merchants
GST
· One Nation, One Tax- One Nation-One Market
· Passed by Parliament
· To be rolled on July 1,2017
· 4 Tax Rates- 5%, 12%, 18%, 28%
· Reduction in overall taxes on goods, estimated to be 25-30%
· Lead to ease of doing business and increase in tax revenue collections.
Benefits of GST
Decrease in Inflation due to
· Reduction in Cascading effect of Taxes
· Overall Reduction in Prices
Ease of Doing Business due to
· Common National Market
· Benefits to Small Taxpayers
Decrease in “Black” Transactions due to
· Self-Regulating on line Tax System
· Non-Intrusive and transparent Tax System
More informed consumer due to
· Simplified Tax Regime
· Reduction in Multiplicity of Taxes
Poorer States to gain due to
· GST being a destination based Tax
· Consumer States to benefit the most
· Abolition of CST
Make in India boost due to
· Exports to be Zero Rated
· Protection of Domestic Industry - IGST
ECONOMIC INDICATORS
- Inflation brought under control. CPI-based inflation declined to 3.65% in February 2017 from7.72% in May 2014.
- Inflation rate averaged 7.79 percent from 2012 until 2016, reaching an all-time high of 11.16 percent in November 2013 and a record low of 3.69 percent in July 2015
- Economic Survey: CPI based Inflation likely to be below 5%.
- Food inflation down to 2.46%; it was 8.88% in May 2014
- Economy has moved on a high growth path.
- India’s Current Account Deficit declined from 1.8% in 2014-15 to 1.3% in Q3 2016.
- High GDP growth rate: 7%+
- Highest FDI ever: $63 billion
- Fiscal Deficit in control: 3.2%
- Current Account Deficit down from 4% in 2014 to almost zero
- Low inflation: Around 4% from high of 11% in 2014
- Rupee exchange rate in control
GDP Growth Rate
· India has been the brightest star in global economy since the Government came to power, and fear-mongering over demonetization was exposed by Q3 2016-17 growth of 7.1%
Year
|
Growth rate (%)
|
2012-13
|
5.48
|
2013-14
|
6.54
|
2014-15
|
7.18
|
2015-16
|
7.93
|
2016-17
|
7.11
|
GDP PROJECTION BY INTERNATINAL AGENCIES (2016-17 vs. 2017-18)
GDP (Growth Rate) Projections by International Agencies (2016 vs 2017P)
International Agencies
|
Report
|
2016
|
2017P
|
IMF
|
World Economic Outlook (October, 2017)
|
7.1%
|
6.7%
|
OECD
|
India – Economic forecast, 2017
|
7.1%
|
7.3%
|
World Bank
|
Global Economic Prospects, June 2017
|
6.8%
|
7.2%
|
UN
|
World Economic Situation and Prospects, update as of mid-2017
|
7.0%
|
7.3%
|
ADB
|
Asian Development Outlook, September 2017
|
7.1%
|
7.0%
|
Moody’s
|
-
|
-
| |
Fitch
|
-
|
-
| |
CSO
|
Press Release, 2017
|
2016-17 (7.1%)
|
-
|
*P = Projection
FDI (COMMERCE)
· Foreign Direct Investment goes up by 48% since NDA Govt. took over
Year
|
Amount of FDI (US$ Billion)
|
2013-14
|
36.4
|
2014-15
|
44.9
|
2015-16
|
53.4
|
2016-17 (till December, 2016)
|
47.2
|
· India world’s most attractive investment destination
· Will create jobs and benefit domestic consumers through lower prices and superior technology.
FOREX RESERVES (Commerce)
· India’s Highest ever FOREX Reserves in 2015
· Macroeconomic stability ensured with Forex Reserves $364 Billion (as on March 23,2017) compared to $312 Billion (May end, 2014)
· Lowest point of Forex Reserves in this decade reached in September 2013 - $274 Billion, threatening macroeconomic stability
BUDGETARY REFORMS (Finance)
3 Major Reforms in Budget 2017-18.
· Presentation of Budget advanced to 1st February to enable the Ministries to operationalize all activities from the commencement of the financial year.
· Merger of Railways Budget with General Budget to bring Railways to the centre stage of Government’s Fiscal Policy and
· Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries
EASE OF DOING BUSINESS (DIPP)
- Improved rank in Ease of Doing Business Ranking
- Self-certification
- Simplification of rules
- Scrapping of about 1200 obsolete laws
- Most of the regulatory processes put online.
- 60% of defence Items out of the licensing process
- Real Estate Bill passed to protect the interest of buyers and bring more transparency to the housing sector.
- Gas pooling for power and fertilizer sectors.
REVAMPING & RESTRUCTURING OF BANKS
- Merger of 5 State Bank subsidiaries into State Bank of India
REAL ESTATE BILL
· Real Estate Bill passed to protect the interest of buyers and bring more transparency to the housing sector.
SOVERIGN GOLD BONDS
· To provide a new financial instrument of investment to public at large and reduce the demand for physical gold. 3986 kg of Gold bonds worth Rs. 1044 crore subscribed.
INDIAN GOLD COIN SCHEME
· Boost to indigenous gold coin scheme launched under Make in India
LABOUR REFORMS
ShramevJayate
- ShramSuvidha portal: unique labour identification number allocated, online registration of establishments.
- Unique Labour Identification number allocated to give permanent identity to labourers. EPFO issued 6.57 crores UAN out of which 2.5 crore have been activated through mobile phones.
- Amendments in Labour laws to exempt certain industries from returns, labour registration, inspection etc.
- Amendment in factories Act, 1948 to allow for: night shift for women, increased hours of overtime
- Apprentices Act, 1961 modified to ensure more apprentices. Stipend linked to minimum wages.
- Facility of Common online return in one year
- Reforms in BIS laws to improve the standards of goods and services
- National Career Service Project: bringing employers, trainers and unemployed on single platform, 3.5 Crore aspirants registered till now.
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