Daily Current Capsules - 05^th 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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