Prelims 2020 Current Affairs Revision

Economy
(May - December 2019)

Click Here for Prelims 2020 CA Revision

Environment, Science &Technology, Social Justice,
Polity & Governance, History, Art & Culture
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Table of Contents National Statistical Office ........................................ 20

Growth and Development ...............................................4 Taskforce on Direct Tax ........................................... 20
Code on Wages 2019 ..................................................4 Financial Market ............................................................ 21
Labour Code Bill ...........................................................4 Essar Steel Sale ......................................................... 21
Periodic Labour Force Survey ....................................4 National Company Law Appellate Tribunal ........... 21
Marathwada Water Grid ..............................................5 T. N. Manoharan taskforce ...................................... 22
Indian Institute of Skills ..............................................6 SEBI’s financial autonomy ........................................ 22
World Poverty Clock ....................................................6 Report on Black Money ............................................. 23
Banking Sector .................................................................7 Financial Service Providers ...................................... 23
RBI on Liquidity Management ....................................7 Elephant Bonds .......................................................... 24
Guidelines on NBFCs ...................................................7 Social Stock Exchanges............................................ 24
Regulatory Sandbox Framework ...............................8 MCA21 ......................................................................... 24
On-tap Authorization ...................................................8 External Sector ............................................................... 25
Bank Mergers ...............................................................9 Change in FDI Norms ................................................ 25
Bank Nationalisation .................................................10 Sovereign External Borrowing ................................. 25
Interest Rates .............................................................10 Circular Economy ....................................................... 25
Lower Rates Accelerating Growth ...........................11 WTO Panel & Trade Dispute ..................................... 26
RBI transfer to Government......................................11 India and RCEP ........................................................... 27
Ban on Virtual currencies .........................................11 Hongkong Convention .............................................. 27
Partial Credit Guarantee Scheme ............................12 Tax on tech Giants ..................................................... 28
Loan from Clean Technology Fund .........................12 Developing Country Status ....................................... 28
Operation Twist ..........................................................13 Automatic Exchange of Information ....................... 29
Merchant Discount Rate ...........................................13 OIC meet in Pakistan ................................................. 29
NEFT and RTGS ..........................................................13 Agreement on Reciprocal Logistics Support......... 29
Liberalised Remittance Scheme ..............................14 Chiang Mai Initiative.................................................. 30
Vision 2021 for payment systems ..........................14 World Gold Council .................................................... 30
Acceptance Development Fund...............................15 World Customs Organization ................................... 30
Public Finance ................................................................16 INSTEX Barter system............................................... 30
PSU privatization........................................................16 Agriculture ...................................................................... 31
Corporate Tax Cuts ....................................................16 Wastelands Atlas 2019 ............................................. 31
Angel Tax ....................................................................17 Rural Unemployment Trends ................................... 31
15th Finance Commission .........................................17 Milk Safety and Quality Survey ................................ 31
Monetary Policy Committee Data ...........................17 Farmer Field Schools ................................................ 32
Stagflation in Economy .............................................18 Irrigation in India ........................................................ 33
Cabinet Committee on Investment and Growth ....18 Zero Budget Natural Farming .................................. 33
Documentation Identification Number ...................19 Data Bank of Farmers ............................................... 33
Financial Stability and Development Council ........19 Contract farming ........................................................ 34
Fugitive Economic Offender .....................................19 20th Livestock Census.............................................. 34
Predatory Pricing .......................................................19 ‘Reducing Food Loss and Waste’ Report ............... 35

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Food Subsidy ..............................................................35 Nandan Nilekani committee..................................... 51

Water Management Issues ......................................36 Pradhan Mantri Kisan Maan Dhan Yojana ............. 52
Industry and Infrastructure ...........................................37 India Design Council.................................................. 52
Funding for Housing ..................................................37 Phase one agreement ............................................... 52
KABIL ...........................................................................37 MSCI Index .................................................................. 53
Indian Startup ecosystem .........................................38 NIRVIK scheme .......................................................... 53
Committee on MSME sector ....................................38 Extension of AMRUT mission .................................. 53
Bharat Bond ETF ........................................................39 Pradhan Mantri Gram Sadak Yojana ...................... 53
Tripura’s first SEZ ......................................................39 Atal Bhujal Yojana (ATAL JAL) ................................ 54
Project Silver Line ......................................................39 HS Code for Khadi ..................................................... 54
Coal Bed Methane (CBM) .........................................40 Patent Prosecution Highway programme .............. 54
East Coast Economic Corridor .................................41 CLAP ............................................................................ 54
National Infrastructure Pipeline ..............................41 Bimal Jalan Panel ...................................................... 55
Multi Modal Terminal ................................................41 Future Prime Platform .............................................. 55
National Investment and Manufacturing Zone .....42 PRAKASH portal......................................................... 55
VAHAN Database .......................................................42 Project SU.RE ............................................................. 56
Delay in Hydropower Projects ..................................42 Motor Vehicles Act 2019 .......................................... 56
National Electricity Distribution Company .............43 Reports and Indices....................................................... 57
Schemes ..........................................................................44 Ease of Doing Business Index ................................. 57
ICEDASH & ATITHI .....................................................44 World Economic Outlook 2019 ................................ 57
MUDRA Yojana ...........................................................44 Global Competitiveness Index 2019 ....................... 58
National e-Assessment Scheme .............................44 World Intellectual Property Indicators report ........ 58
L2Pro India Platform .................................................45 Broadband Readiness Index .................................... 59
India Urban Data Exchange ......................................45 World Investment Report .......................................... 60
Digital certificate of origin system ..........................46 Human Development Index 2019 ............................ 60
Bharat Bill Payment System .....................................47 IMD World Talent Ranking Report ........................... 61
Company Law Committee ........................................47 OECD Economic Outlook .......................................... 61
Sabka Vishwas - Legacy Dispute Resolution ‘R&D Expenditure Ecosystem’ Report ..................... 62
Scheme ........................................................................48 India Skills Report 2020 ............................................ 62
SAMARTH Scheme ....................................................48 E-commerce Index 2019 ........................................... 62
PM – KISAN Yojana ...................................................48 LEADS Index 2019 ..................................................... 63
UDAY scheme .............................................................49 SARAL Index ............................................................... 63
National Agriculture Market (e-NAM) .....................49 Global Liveability Index 2019 ................................... 64
Project Utkarsh 2022.................................................49 Global Multidimensional Poverty Index 2019 ....... 64
Inter Creditor Agreement ..........................................50 Road Crash Report ..................................................... 65
KUSUM Scheme .........................................................50 Global Labour Income Share and Distribution
Inclusive Growth Dividend Scheme.........................50 Report .......................................................................... 65
New Delhi International Arbitration Act ..................51

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Growth and Development

Code on Wages 2019

1. The President gave assent to the Code on Wages, 2019, which had been earlier passed by the Parliament.
2. The Code on Wages, 2019 replaces four laws, namely - Payment of Wages Act, 1936; Minimum Wages
Act, 1948; Payment of Bonus Act, 1965; Equal Remuneration Act,1976.
3. Coverage: All employees in the country.
a) Central government will make wage-related decisions for employments such as railways, mines, and oil
fields, among others.
b) State governments will make decisions for all other employments.
4. Wages include salary, allowance, or any other component expressed in monetary terms. This does not
include bonus payable to employees or any travelling allowance, among others.
5. The Wage Code acknowledges that the aim of setting the floor wage is to ensure ‘Minimum living
standards’ for workers. Employers are prohibited from paying wages less than the minimum wages.
6. Wage Code aims to fix different floor wages for different geographical areas in consultation with the
advisory board and states.
7. A national minimum wage of ₹176 per day had been recommended in 2017. Labour Ministry committee in
2019 recommended is should be ₹375 per day.
Labour Code Bill
1. The Union Cabinet has approved the Industrial Relations Code Bill, 2019.
2. The bill proposes to amalgamate - The Trade Unions Act, 1926; The Industrial Employment (Standing
Orders) Act, 1946; The Industrial Disputes Act, 1947.
3. It presents the legal framework for bringing in the concept of ‘fixed-term employment’ through contract
workers on a pan-India basis.
4. Currently, companies hire contract workers through contractors. With the introduction of fixed-term
employment, they can hire workers directly under a fixed-term contract.
5. These workers will be treated on a par with regular workers during the tenure of the contract.
6. Degree of flexibility on government permissions for retrenchment is offered. (Retrenchment means the
downsizing staff of the company to reduce the expenditure.)
7. Provides for vesting of powers with the government officers for adjudication of disputes involving penalty
as fines to lessen the burden on the tribunal.
Periodic Labour Force Survey
1. National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation has
released ‘Periodic Labour Force Survey (PLFS)’.
2. It highlights the shrinking share of the labour force. It states Labour force participation rate has shrunk to
49.7% in 2018.
3. There is an absolute decline in the number of workers from 467.7 million in LFPR is the percentage
2012 to 461.5 million in 2018. of people working or
4. It states that overall unemployment rate is 6.1%. Rise in overall seeking work in the
unemployment has both locational and gender dimensions. above-15 years age
5. Highest unemployment rate of a severe nature was among the urban women category.
at 10.8%, followed by urban men at 7.1%, rural men at 5.8%, and rural women at 3.8%.
6. India have become the country with the lowest participation of women in the labour force.
7. The survey findings suggest that the unemployment rates go up as levels of education go up due to
aspirations for specific jobs.

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Marathwada Water Grid

Recently the Government of Maharashtra planned the ‘Piped Water Grid’ for drought prone Marathwada
region.
Need of the grid
1. Arid Marathwada region faces the drought situations almost every year.
2. Water scarcity in the region is currently acute and a 20 to 42% monsoon deficit is predicted in this season.

3. The region is already suffering from an acute depletion of groundwater levels.

4. There is a variation in the levels of water across the region. Some dams e.g. Jayakwadi is almost full but
10 dams are facing severe water-level shortages.
About the Grid
1. The project aims to bring in water security and optimal use of available water in the region.
2. The project proposes to connect 11 major dams in Marathwada through pipelines ranging from 1.6 m to
2.4 m in diameter.
3. A primary loop will connect the reservoirs to enable pumping water from water surplus dams to areas
serviced by reservoirs with low storage levels.
4. The grid would have water treatment plants and pumping stations to provide piped drinking water to every
village household three years from now.
5. Some sections of the pipeline will allow reverse flows to optimize the system so that a water-scarce
taluka is supplied from the nearest water-surplus reservoir.
6. Israel’s national water supply company ‘Mekorot’ is working as a consultant for the project.

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Indian Institute of Skills

1. The foundation stone for Indian Institute of Skills was laid in Mumbai. Similar institutions will be set up in
Ahmedabad and Kanpur also.
2. These institutes would be constructed and operated on a Public-Private Partnership (PPP) model and in
not-for-profit basis.
3. IIS will be set up on the lines of Indian Institutes of Technology and Indian Institutes of Management with
first-hand learning facilities from internationally renowned skill institutions.
4. These institutes would provide skill training in highly specialized areas to students who want to pursue
technical education.
5. Tata Education Development Trust (TEDT) is the private partner for setting up IIS in Mumbai.
World Poverty Clock
1. The World Poverty Clock (WPC) provides real-time poverty estimates until 2030 for almost all country in
the world.
2. It is developed by the World Data Lab.
3. WPC uses publicly available data on income distribution, production and consumption and bridges the
common decadal gaps between large-scale surveys and censuses.
4. WPC is a systematic and consistent analytical framework to measure progress towards SDGs.
Global Poverty
1. According to the WPC, Extreme Poverty is measured as people living on less than $1.90 a day. About 8%
of the world, or nearly 600 million people, lives in extreme poverty.
2. In 2015, the global ‘hot-spots’ for extreme poverty were India, Nigeria, Democratic Republic of Congo,
Ethiopia, and Bangladesh, with nearly half of the world’s extreme poor.
3. Percentage of the world’s population living below the extreme poverty line has reduced from 36% in
1990s to 10% in 2015.
4. The decline is largely in South-East Asia and East Asia, particularly China. The decline in this decade is
due to declines in South Asia, particularly India.
5. During the last census in 2011, India’s extreme poverty rate was reported to be 21.9% or 265 million
people.
6. The latest estimates suggest that the extreme poverty number is likely to have fallen to 4% or 50 million in
2019 and is likely to drop below 40 million by 2021.
7. The structure of India’s population has been described as a pyramid that is now changing due to a
dramatic increase in the lower-middle-class population and rising income inequality.
3. This structural shift will have profound consequences for politics and economics, with an aspiring class
that is very large and growing, and with abject poverty population decline.
4. India will soon no longer be a “poor country" in the sense of the last 70 years but many issues related to
very-low-income households will remain.
5. Crossing a minimum income or consumption threshold does not imply that the lack of education or
health will not force households back into poverty.

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Banking Sector

RBI on Liquidity Management

1. The Reserve Bank of India (RBI) is closely watching developments in the NBFC sector, which is facing a
liquidity crunch and is committed to seeing the sector remains robust and healthy.
2. RBI does not regulate housing finance companies, but banks have significant exposure to the Housing
Finance Companies. The RBI is mandated to look after the financial stability of the entire economy.
3. Against this background, RBI has been closely monitoring the activity and the performance and the
developments in the NBFC sector, including the HFCs.
‘On tap’ licensing
1. RBI has announced draft norms for ‘on tap’ licensing for small finance banks after these entities furthered
financial inclusion.
2. A review of the performance of small finance banks reveals that they have achieved their priority sector
targets and thus attained their mandate for furthering financial inclusion.
3. Hence, there is a case for more players to be included to enhance access to banking facilities to small
borrowers and to encourage competition.
4. However, the RBI stated that, for payments banks, more time is needed to review the performance before
considering the licensing of this category of banks to be put ‘on tap’.
Leverage ratio
1. The Reserve Bank of India has decided to bring leverage ratio for banks in line with Basel-III standards to
improve the lendable resources.
2. RBI has mandated a leverage ratio of 3.5% for all the banks except for the domestic systemically
important banks (D-SIBs), which will have a 4% ratio.
3. The leverage ratio was introduced for banks post-financial crisis of 2008, as one of the underlying
features of the crisis was the build-up of excessive on- and off-balance sheet leverage in the banking
system.
Panel to review liquidity management framework
1. An internal working group has been set up to review the liquidity management framework with a view to
simplify the current framework.
2. The objective was also to clearly communicate the objectives, quantitative measures and toolkit of
liquidity management by the RBI.
3. Liquidity is one of the areas where banks give priority. Setting up a committee to improve the liquidity
management process is a positive signal and aligning the leverage ratio with Basel standards would help
banks considerably.
About Leverage Ratio
1. A leverage ratio looks at how much capital comes in the form of debt (loans) or assesses the ability of a
bank to meet its financial obligations.
2. The leverage ratio, as defined under Basel-III norms, is Tier-I capital as a percentage of the bank’s
exposures. The framework is designed to capture leverage associated with both on- and off-balance sheet
exposures.
Guidelines on NBFCs
1. Reserve Bank of India has issued guidelines to Non-Banking Financial Companies (NBFC) regarding
liquidity management.
2. This move follows the liquidity crunch among some NBFCs in meeting their recent repayment obligations
after the collapse of the IL&FS group.
Highlights
1. RBI has asked following NBFCs to maintain a liquidity buffer in terms of liquidity coverage ratio (LCR).
a) Non-deposit taking non-banking financial companies (NBFC-NDs) with asset size of Rs 10,000 crore and
above.
b) All deposit-taking non-banking financial companies (NBFCs) irrespective of their asset size.

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2. LCR refers to the proportion of highly liquid assets held by companies to ensure their ongoing ability to
meet short-term obligations.
3. Maintenance of LCR buffer can increase the resilience of NBFCs against potential liquidity disruptions.
4. It can enable NBFCs to have sufficient high-quality liquid assets (HQLA) to survive any acute liquidity
stress scenario lasting for 30 days.
5. According to RBI, the assets to be included as HQLA include- Cash, Government securities and
Marketable securities issued or guaranteed by foreign sovereigns.
6. Liquid assets comprise of High-quality assets that can be readily sold or used as collateral to obtain
funds in a range of stress scenarios.
NBFC
- It is a financial institution that does not have a full banking license but involves in bank-related financial
services.
- These companies are engaged in the business of loans and advances, acquisition of shares, securities
issued by Government, leasing, insurance business, chit business, etc.
- NBFC doesn’t include any institution whose principal business is of agriculture activity, industrial activity,
purchase or sale of any goods and immovable property.
- NBFC cannot accept demand deposits. They don’t form part of the payment and settlement system. They
cannot issue cheques drawn on itself.
- The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to
depositors of NBFCs unlike in the case of banks.

Regulatory Sandbox Framework

The Reserve Bank of India (RBI) issued the final framework for regulatory sandbox in order to enable
innovations in the financial technology space.
Regulatory Sandbox
1. A regulatory sandbox usually refers to a live testing of new products or services in a controlled/test
regulatory environment for which regulators may permit certain regulatory relaxations for the limited
purpose of the testing.
2. The objective of the sandbox was to foster responsible innovation in financial services, promote
efficiency and bring benefit to consumers.
3. RBI will launch the sandbox for entities that meet the criteria of the minimum net worth of Rs. 25 lakh as
per their latest audited balance sheet.
6. The entity should either be a company incorporated and registered in the country or banks licensed to
operate in India.
7. Money transfer services, digital know-your-customer, financial inclusion and cybersecurity products are
included
8. Cryptocurrency, credit registry and credit information have been left out.
On-tap Authorization
1. The Reserve Bank of India recently issued guidelines for ‘on tap’ authorization of payment systems with
an aim to encourage innovation and competition.
2. RBI has decided to offer on-tap authorization for, On-tap authorization:
a) Bharat Bill Payment Operating Unit (BBPOU) It means the RBI will accept
b) Trade Receivables Discounting System (TReDS) applications and grant license
c) White Label ATMs (WLAs). throughout the year.
3. Guidelines on Minimum Net worth
a) Interested entities should have a minimum of 100 crores to function, operate, or provide platforms for the
Bharat Bill Payment Operating Unit (BBPOU).
b) In the case of TReDS, the minimum paid-up equity capital should be Rs 25 crore.
c) The minimum net worth for entities desirous of entering the WLA segment should be Rs 100 crore.

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4. In the case of WLA operators, ATMs should be deployed in the ratio of 1 (for metro and urban): 2 (semi-
urban): 3 (rural).
5. If a WLAO deploys adequate ATMs in a rural region, it need not deploy ATMs in metro, urban or semi-
urban regions to meet the ratio requirements.
About BBPOU
1. BBPOUs (Bharat Bill Payment Operating Units) are authorized operational units, working in adherence to
the standards set by the BBPCU.
2. These are the entities that received authorization from Reserve Bank of India to conduct bill payment and
aggregation business in the Bharat Bill Payment System.
3. They are the single-point access to all Billers on all payment channels i.e. digital and physical.
4. They have the potential to offer new Value-Added Services like Online Presentment.
About TReDS
1. It is an online platform for facilitating the financing of trade receivables of MSMEs sellers from corporate
buyers through multiple financiers.
2. The main objective of the TReDS platform is to address the financing needs of MSMEs as well as the
delayed payments issue.
About WLA
1. These ATMs are set up, owned, and operated by non-banks.
2. They provide the banking services to the customers of banks in India based on the cards issued by banks.
3. Non-bank entities that set up, own and operate ATMs are called ‘White Label ATM Operators’ (WLAO).
4. The WLAO’s role is confined to the acquisition of transactions of all banks’ customers by establishing
technical connectivity with the existing authorized ATM Network Operators.
Bank Mergers
1. Ministry of Finance announced to merge ten state-owned banks to create four large entities or lenders.
a) Oriental Bank of Commerce and United Bank of India to be merged with Punjab National Bank.
b) Canara Bank to be merged with Syndicate Bank.
c) Andhra Bank and Corporation Bank to be merged with the Union Bank of India
d) Allahabad Bank to be merged with Indian Bank.
2. Number of public sector banks would be reduced to 12 after the merger.
3. Reasons for mergers
a) Public sector banks compete with each other for the same consumer base and services. It leads to
downsizing of their businesses.
b) These merged banks can respond better to emerging market trends or shifts and compete more with
private banks.
c) Mergers can improve their operational efficiency once they lower their cost of lending and improve
lending.
d) Committees such as M Narasimha Committee have recommended that India should have fewer but
better-managed banks to ensure optimal use of capital, wider reach and greater profitability.
e) By reducing the number of banks to a manageable count, the government will face a lower number of
demands for capital infusion.
4. Concerns
a) Operational risks such as the resistance from staff and unions etc may arise.
b) It can lead to the deterioration of services and disruption in the operations of involved banks in the near
term as the merger process gets underway.
c) There will be fewer options available for customers for banking services.
d) The combined bad loans of these banks are also an issue.
e) Possible creation of ‘Domestic Systemically important institutions (D-SIB)’ can hurt the government and
financial stability.

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D-SIB
- It means that the bank is too big to fail. These banks become systemically important due to their size,
cross-jurisdictional activities, complexity and lack of substitute and interconnection.
- Banks whose assets exceed 2% of GDP are considered part of this group.
- The too-big-to-fail tag also indicates that in case of distress, the government is expected to support these
banks.
- Banks under D-SIB are required to maintain higher share of risk-weighted assets as tier-I equity.
- Currently, SBI, ICICI Bank and HDFC Bank are named as D-SIB.

Bank Nationalisation
The major phase of Bank Nationalization in India completed fifty years.
History of nationalisation
1. Post-Independence India inherited a system where small private banks proliferated. 56% of all bank
deposits in 1947 lay with the 81 scheduled and 557 non-scheduled private banks.
2. These private banks were mostly concentrated in the provinces of Madras, West Bengal and Bombay.
3. In 1955, only State Bank of India was nationalised. It was earlier known as Imperial Bank of India.
4. The SBI nationalisation had happened in the backdrop of private banks going bankrupt at an alarming
rate.
5. Government of India passed the Banking Companies (Acquisition and Transfer of Undertakings)
Ordinance, 1969. It allows the nationalization of 14 largest commercial banks.
6. Those banks accounted for 85 per cent of bank deposits in the country then. Those banks had deposits
of over Rs 50 crores
7. In 1980, six more banks were nationalised
Interest Rates
1. Reserve Bank of India (RBI) asked banks to link their lending rates on floating rate loans of retail, personal
and micro, small and medium enterprises (MSME) borrowers to an external benchmark.
2. This step is taken to improve the transmission of interest rates. Banks can link loans to other segments
of borrowers as well.
Floating rate loans
- Floating rate loan refers to a loan with a floating interest rate. A floating interest rate implies that the rate
of interest is subject to revision every quarter.
- It can also be referred to as a variable interest rate because it can vary over the duration of the debt
obligation.
- The interest charged on the loan is pegged to the base rate, which is determined by the RBI based on
various economic factors.
3. Some banks have already started linking their lending rates to an external benchmark. Other banks mostly
price loans under the marginal cost of funds-based lending rate (MCLR).
MCLR
- It refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed
by the RBI.
- It is an internal benchmark or reference rate for the bank. MCLR actually describes the method by which
the minimum interest rate for loans is determined by a bank.
- It is based on the basis of marginal cost or the additional or incremental cost of arranging one more rupee
to the prospective borrower.
4. According to RBI, the transmission of policy rate changes to the lending rate of banks under the current
MCLR framework has not been satisfactory.
5. Banks have been allowed to choose between –
a. RBI’s repo rate.

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b. Government of India’s three-month treasury bill yield published by the Financial Benchmarks India Private
Ltd (FBIL)
c. Government’s six-month treasury bill yield published by the FBIL.
d. Any other benchmark market interest rate published by the FBIL.
6. But a bank has to adopt a uniform external benchmark within a loan category. The adoption of multiple
benchmarks is not allowed within a loan category.
7. Banks can decide on the spread they charge over the benchmark to calculate the final interest rate. But
the spread can be changed only if the credit assessment of the borrower undergoes a substantial change.
Spread is the difference between borrowing interest rate and lending interest rate.
8. The interest rate under the external benchmark shall be reset at least once every three months.
Lower Rates Accelerating Growth
1. Reserve Bank of India (RBI) has lowered the repo rates in the Monetary Policy Reviews consecutively in
many quarters.
2. Governments worldwide prefer lower interest rates as it draws higher investments leading to higher
growth and more job creation.
- Repo rate is the rate at which commercial banks would borrow from the RBI and the reverse repo is the
rate of interest they would earn when they deposit funds with the central bank.
- The RBI uses the repo rate to influence the interest rate structure in the economy and to manage inflation.
3. The traditional argument is that the lower the interest rate, the better for businesses as it brings down the
cost of capital, making investments more attractive.
4. A rate cut in the monetary policy has to be backed with some positive measures from the government. So
that a rate cut will suffice to re-ignite economic activity.
RBI transfer to Government
1. Recently, the Reserve Bank of India’s (RBI) Central Board decided to transfer a record surplus of Rs 1.76
lakh crore to the government.
2. The RBI is mandated to manage the borrowings of the Central and state governments, supervise banks
and non-banking finance companies, manage the currency and payment systems.
3. RBI makes profits during this activities such as -
a. Returns on its foreign currency assets like bonds and treasury bills of other central banks or top-rated
securities, and deposits with other central banks.
b. Interest on its holdings of local rupee-denominated government bonds or securities, and while lending to
banks for very short tenures, such as overnight.
c. Management commission on handling the borrowings of state governments and the central government.
4. Its expenditures mainly include
a) Printing of currency notes and on staff
b) Commission given to banks for undertaking transactions on behalf of the government across the country
c) Commission given to primary dealers, including banks, for underwriting some of these borrowings.
5. It was recommended by Bimal Jalan Committee appointed to review the capital structure, statutory
provisions and other issues relating to the RBI balance sheet.
Ban on Virtual currencies
1. An inter-ministerial committee set up by the government on virtual currencies has submitted its report.
2. The committee was chaired by Subhash Garg. The committee was formed in 2017.
Virtual Currency
- It is a digital representation of value that can be digitally traded and functions as a medium of exchange,
unit of account, store of value.
- Unlike fiat currency like the rupee, it is not legal tender and does not have the backing of a government.
- A cryptocurrency is a subset of virtual currencies, and is decentralized, and protected by cryptography.

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3. Recommendations
a) It has recommended that private cryptocurrencies be banned completely in India by enacting a law,
imposing fines, penalties, and imprisonment up to 10 years.
b) The committee has proposed a draft bill ‘Banning of Cryptocurrency & Regulation of Official Digital
Currency Bill, 2019’.
c) However, the committee has taken a lenient view on the government launching an official digital currency
with the assistance by the Reserve Bank of India.
d) Fine has been set at either three times the loss or harm caused by a person, or three times the gain made
by the person, whichever is higher.
e) It recommends the RBI to examine the utility of using ‘Distributed Ledger Technology (DLT)’ based
systems for enabling faster and more secure payment.
DLT
- The committee has asked to explore the benefits of the ‘Distributed Ledger Technology (DLT)’ and
blockchain.
-. DLT refers to technologies that involve the use of independent computers (also referred to as nodes) to
record, share, and synchronise transactions in their respective electronic ledgers.
- DLT-based systems can be used by banks and other financial firms for loan tracking, collateral
management, fraud detection, claims management in insurance, etc.
- DLT can be beneficial for removing errors and frauds in the land markets if the technology is implemented
for maintaining land records.
- Blockchain is a specific kind of DLT that came to prominence after Bitcoin, a cryptocurrency that used it.
4. Reasons for banning private cryptocurrencies
a) The committee highlights the fact that cryptocurrencies do not have any intrinsic value of their own and
lack any of the attributes of a currency.
b) It means cryptocurrencies neither act as a store of value nor are they a medium of exchange in
themselves.
c) So the committee states that the private cryptocurrencies should not be allowed.
d) Private cryptocurrencies are inconsistent with the essential functions of money or currency. Hence
private cryptocurrencies cannot replace fiat currencies.
Partial Credit Guarantee Scheme
1. The Union Cabinet approved the "Partial Credit Guarantee Scheme".
2. It will be offered by the central government to Public Sector Banks (PSBs) for purchasing high-rated
pooled assets from financially sound Non-Banking Financial Companies (NBFCs) / Housing Finance
Companies (HFCs).
3. It would be a one-time partial credit guarantee and will remain open till 30th June 2020 or till Rs. 1,00,000
crore assets get purchased by the Banks, whichever is earlier.
4. Finance Minister can extend the validity of the Scheme by up to three months considering its progress.
5. The proposed scheme would help address NBFCs/HFCs resolve their temporary liquidity or cash flow
mismatch issues.
6. It will enable them to continue credit creation and providing last mile lending to borrowers, thereby
spurring economic growth.
Loan from Clean Technology Fund
1. The Asian Development Bank (ADB) and the Government of India signed a $250 million loan to Energy
Efficiency Services Limited (EESL) to expand energy efficiency investments in India.
2. This will benefit agricultural, residential and institutional consumers.
3. In addition, $46 million financing will be provided from the Clean Technology Fund (CTF), to be
administered by ADB.

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About Clean Technology Fund

1. The Clean Technology Fund (CTF), one of two multi-donor Trust Funds within the Climate Investment
Funds (CIFs).
2. It promotes scaled-up financing for demonstration, deployment and transfer of low-carbon technologies
with significant potential for long-term greenhouse gas emissions savings.
3. CTF finances 12 country programmes and one regional programme.
4. The funds are channelled through the African Development Bank, Asian Development Bank, European
Bank for Reconstruction and Development, Inter-American Development Bank, and World Bank Group.
Operation Twist
1. Reserve Bank of India has announced to conduct a simultaneous sale and purchase of bonds under its
‘Open Market Operations (OMO)’. This move aims at managing the yields.
2. Bank will simultaneously buy and sell government securities. It is the first time the RBI will conduct a
special open market operation (OMO) of this kind.
3. This operation is similar to the 'Operation Twist' carried out in the United States during 2011-12.
4. This step is taken after a review of the current liquidity and market situation and an assessment of the
evolving financial conditions.
5. Open market operation (OMO) is an activity by a central bank to give/take liquidity in its currency to/from
a bank.
About the Operation
1. Operation Twist is a US Federal Reserve monetary policy operation.
2. It involves the purchase and sale of government securities to boost the economy by bringing down long-
term interest rates.
3. In 1961, the ‘Operation Twist’ programme was initiated to revive the weak economy by
a) lowering longer-term interest rates and
b) keeping short-term interest rates unchanged.
4. The programme was implemented again in late 2011 and 2012 to stimulate the economy hit by the global
financial crisis.
Merchant Discount Rate
1. Ministry of Finance said that ‘Merchant Discount Rate (MDR)’ will not be levied on either customers or
merchants from 1 January 2020.
2. All companies with a turnover of ₹50 crore or more are mandated to provide the facility of payment
through RuPay Debit card and UPI QR code to their customers.
3. MDR is the cost paid by a merchant to a bank for accepting payment from their customers via digital
means.
4. The merchant discount rate is expressed in percentage of the transaction amount. It is also applicable for
online transactions and QR-based transactions.
5. The amount that the merchant pays for every transaction gets distributed among three stakeholders
a) Bank that enables the transaction
b) Vendor that installs the point of sale (PoS) machine
c) Card network provider such as Visa, MasterCard, RuPay.
NEFT and RTGS
1. Reserve Bank of India decided to allow round-the-clock fund transfers through NEFT from December 2019
in order to promote digital transactions.
2. This step is expected to revolutionise the retail payments system of the country.
NEFT
1. National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds
transfer.
2. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank
branch to any individual, firm or corporate having an account with any bank branch in India.
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3. It is an electronic funds transfer system maintained by the Reserve Bank of India (RBI).
4. It was started in November 2005. It was established and maintained by Institute for Development and
Research in Banking Technology (IDRBT).
5. The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal under the
Indo-Nepal Remittance Facility Scheme.
6. There is no upper or lower limit on the amount that can be transferred via NEFT. There is only a single
limitation on the amount of one-time transaction through cash mode, which is Rs. 50,000.
RTGS
1. The Real Time Gross Settlement System (RTGS) is meant for large-value instantaneous fund transfers.
2. It is a safe and secure system for funds transfer. RTGS transactions have no amount cap.
3. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted
through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling.
4. The RTGS system is primarily meant for large value transactions.
Liberalised Remittance Scheme
1. The Liberalised Remittance Scheme (LRS) allows resident individuals to remit a certain amount of money
during a financial year to another country for investment and expenditure.
2. The Scheme was introduced in 2004 by the Reserve Bank of India (RBI).
3. According to the prevailing regulations, resident individuals may remit up to $250,000 per financial year.
4. This money can be used to pay expenses related to travelling (private or for business), medical treatment,
studying, gifts and donations, maintenance of close relatives and so on.
5. Remitted amount can also be invested in shares, debt instruments, and be used to buy immovable
properties in overseas market.
6. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for
carrying out transactions permitted under the scheme.
7. However, It restricts buying and selling of foreign exchange abroad, or purchase of lottery tickets, or any
items that are restricted under Schedule II of Foreign Exchange Management Rules, 2000.
8. Customers can’t make remittances directly or indirectly to countries identified by the Financial Action
Task Force as non-cooperative countries and territories.
FATF
- It is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to
combat money laundering.
- The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory
and operational measures for combating money laundering, terrorist financing and other related threats.
- The Secretariat is located at the OECD Headquarters in Paris.
- At present, there are 39 members of the organisation. India is a member of it.

Vision 2021 for payment systems

1. Reserve Bank of India (RBI) released a document the 'Payment and Settlement Systems in India: Vision
2019 - 2021' to ensure a safe, secure and affordable e-payment system.
2. RBI expects the number of digital transactions to increase more than four times to 8,707 crore in
December 2021.
3. Core theme of the document is ‘Empowering Exceptional (E)payment Experience'. It envisages to achieve
a highly digital and cash-lite society through the 4Cs
a) Competition
b) Cost effectiveness
c) Convenience
d) Confidence
4. It expects innovation and entry of more players which is expected to ensure optimal cost to the
customers and freer access to multiple payment system options.

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5. It stated that payment systems like UPI/IMPS are likely to register average annualised growth of over
100% and NEFT at 40% over the vision period (period up to December 2021).
Acceptance Development Fund
1. Reserve Bank of India recently announced the ‘Acceptance Development Fund (ADF)’ to improve the last-
mile payments network to get rural India to transact digitally.
2. The fund will operationalise as a bank-sponsored development fund with contributions from the
regulators solely to improve payment infrastructure in Indian small towns and villages.
3. The proposed fund will have all major banks and payment companies transferring a percentage of their
proceeds from fees accrued from processing digital payments.
4. The setting up of ADF was first discussed in a recommendation report by the committee of deepening
digital payments (CDDP) under Nandan Nilekani.

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Public Finance

PSU privatization
1. Union Cabinet has approved the sale of government's stake along with management-control transfer in
many Public Sector Undertakings (PSUs) such as
a) Bharat Petroleum Corp Ltd (BPCL)
b) Shipping Corporation of India (SCI)
c) Container Corporation of India (CCI)
d) Tehri Hydro Power Development Corporation (THPDC)
e) North Eastern Electric Power Corporation Ltd (NEEPCL)
2. It has decided to cut shareholding in select public sector firms below 51% to boost revenue collections
that have been hit by a slowdown in the economy.
3. Government is expected to achieve its disinvestment target of Rs. 1, 05, 000 crores by end of this fiscal
year through the sale of stakes
4. Reasons
a) The government is struggling to meet its revenue collection target for the current fiscal year.
b) GST collection is below the expected targets. A corporate tax rate cut is likely to weaken tax collection.
c) This has put pressure on the government to ramp up its non-tax revenue.
About Disinvestment policy
The central follows two approaches - Disinvestment through minority stake sale and Strategic
disinvestment.

Disinvestment through minority stake sale

a. Unlisted CPSEs with no accumulated losses and having earned net profit in three preceding
consecutive years are to be listed.
b. Already listed profitable CPSEs (not meeting mandatory shareholding of 10%, which stands revised to
25%) are to be made compliant through ‘Offer for Sale’ (OFS) by Government or by the CPSEs through
issue of fresh shares or a combination of both
c. The Department of Investment and Public Asset Management (DIPAM) is to identify CPSEs in
consultation with respective administrative Ministries

Strategic disinvestment
a. Sale of substantial portion of Government shareholding in identified CPSEs upto 50 per cent or more,
alongwith transfer of management control.
b. NITI Aayog to identify CPSEs for strategic disinvestment and advice on the mode of sale, percentage of
shares to be sold of the CPSE and method for valuation of the CPSE.

Corporate Tax Cuts

1. The government has announced the cuts in corporate taxes and roll-back of some market-unfriendly
proposals presented in the last Budget.
2. Corporate tax rate has been cut to 22% from 30% for companies that do not avail exemptions.
3. Tax cuts have been done to generate private investment, attract foreign investors and meet the long-
standing demand of Corporates in India.
4. However, the tax cuts will have revenue foregone of roughly ₹1,45,000 crore.
Revenue Forgone
- It is referred to as tax expenditure or indirect subsidy to taxpayers.
- The tax policy provides specific tax incentives. Such preferences have a definite revenue impact. This is
known as ‘Revenue Forgone’.

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Angel Tax
1. In the Union Budget 2019, Finance minister has announced startups registered with the Department for
Promotion of Industry and Internal Trade (DPIIT) will be exempt from angel tax.
2. Angel Tax was introduced in 2012 under section 56(2) of India’s Income Tax Act. It was originally aimed
at thwarting money laundering.
3. Angel tax has often been touted by the startup community as an unfair tax burden affecting young
companies and their financial backers.
4. Angel Tax is taxed on funds raised by startups if they exceed the fair market value of the company.
5. Any excess capital then attracts a 30 percent tax.
15th Finance Commission
1. The Central government has extended the tenure of the Fifteenth Finance Commission (FFC) through the
Presidential order and has amended the terms of reference (TOR).
2. It amended TOR to examine whether a separate mechanism for funding of defence and internal security
ought to be set up and if so, how such a mechanism could be operationalized.
3. The Finance Commission derives its mandate from the Constitution. The basic TORs are detailed in
Article 280 of the Constitution. These are related to,
a) The distribution of central taxes between the Union and states and the shares of individual states.
b) The principles of grants to states.
c) The amounts of revenue deficit grants needed to augment the consolidated funds of the states to
supplement the resources of their local bodies based on the recommendations of State Finance
Commissions.
d) Any other matter in the interest of sound finance.
TOR for FFC
1. It had directed the commission to use the 2011 population, which is opposed by some states. Then, there
were three sets of considerations.
a. To examine whether the revenue deficit grants should be given at all.
b. To review the impact of enhanced devolution recommended by the Fourteenth Finance Commission
along with the imperative of the national development programme under New India-2022 on the Centre’s
finances.
c. To propose performance-based incentives for the states on a number of matters including
implementation of central schemes and control over expenditure on “populist measures".
Monetary Policy Committee Data
Reserve Bank of India has released its fifth bi-monthly monetary policy statement for 2019-20.
Highlights
1. The policy repo rate remains unchanged at 5.15%.
2. In this year, the RBI has cut repo rate by 135 basis points so far to a nine-year low of 5.15%.
3. RBI has lowered its real GDP growth forecast for 2019-20 from 6.1% in the October policy to 5%.
4. Monetary Policy Committee (MPC) has decided to maintain an accommodative stance as long as it is
necessary. It also made it clear that there is a need to optimize the impact of rate reductions.
Reasons
1. Recent rise in inflation and inflation expectations.
2. Recent hike in telecom tariffs is expected to push up core inflation.
3. Centre’s fiscal position is not healthy and higher government spending, financed by borrowings, is
expected to push up inflation.

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About Monetary Policy Committee

• It was set up after the signing of Monetary Policy Framework Agreement between Government and RBI,
with the responsibility for price stability and inflation targeting.
• Earlier, the RBI governor, with the aid and advice of his internal team and a technical advisory committee
took decisions on monetary policy of the country
Composition:
• The Central Government constitutes the MPC through a notification in the Official Gazette.
• It will have six members, -
o RBI Governor (Chairperson),
o RBI Deputy Governor in charge of monetary policy,
o 1 official nominated by the RBI Board
o 3 members nominated by the Government of India.
Functions:
• Inflation Targeting: RBI will be responsible for containing Consumer Price Index at 4% (±2%).
• The MPC takes decisions based on majority vote (by those who are present and voting).
• In case of a tie, the RBI governor will have the second or casting vote.
• The decision of the Committee is binding on RBI.

Stagflation in Economy
With fast decelerating economic growth and sharply rising inflation, there is a growing doubt that India is
facing stagflation.
Stagflation
1. Stagflation is when an economy faces stagnant growth as well as persistently high inflation.
2. Typically, inflation rises when the economy is growing fast because people are earning more money and
are capable of paying higher prices for the same quantity of goods.
3. Similarly, when the economy stalls, inflation tends to dip as well as people will have less money while
there is the same quantity of goods.
4. But in case of stagflation, economic growth stalls, unemployment tends to rise and existing incomes do
not rise fast enough yet people have to bear the rising inflation.
5. This reduces purchasing power as well.
6. Famous stagflation happened in the early and mid-1970s when OPEC (The Organisation of Petroleum
Exporting Countries) had cut supply that increased oil prices across the world.
7. The rise in oil prices constrained the productive capacity of economies that heavily depended on oil and
hampered economic growth.
8. On the other hand, the oil price spike also led to inflation and commodities became more costly. The net
result was lower growth, higher unemployment, and higher price level. i.e. Stagflation.
Cabinet Committee on Investment and Growth
1. Newly formed Cabinet Committee on Investment and Growth (CCIG) held its first meeting under the
chairmanship of Prime Minister.
2. The committee looked at boosting consumer spending to bring back a sputtering economy on track.
3. The panel has four other members,
a) Minister of Home Affairs
b) Minister of Highways and MSME
c) Minister of Finance
d) Minister of commerce & Railways Minister
4. Alongside CCIG, a Cabinet Committee on Employment & Skill Development headed by Prime Minister was
also constituted.

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5. These cabinet committees were constituted in response to growth slow down and a rise in
unemployment.
Documentation Identification Number
1. The Central Board of Indirect Taxes (CBIC) has introduced Documentation Identification Number (DIN)
system in indirect tax administration.
2. From now onwards any CBIC communication must have a Documentation Identification Number.
3. Government has already executed the DIN system in the direct tax administration, which provides for
transparent and recorded communication between the income tax department and taxpayers.
4. This furthers the Government’s objectives of bringing transparency and accountability in the tax
administration through the widespread use of information technology.
5. In the indirect tax administration, the DIN would be used for search authorization, summons, arrest memo,
inspection notices and letters issued in the course of any inquiry.
6. Any communication from GST or Custom or Central Excise department without a computer-generated
DIN, would be treated as invalid.
Financial Stability and Development Council
1. A meeting of the Financial Stability and Development Council (FSDC) was recently held to review the state
of the economy, including stress in the financial sector.
About FSDC
1. FSDC was constituted in 2010.
2. It is the apex body of financial sector regulators and a non-statutory body.
3. It envisages to strengthen and institutionalize the mechanism of maintaining financial stability, enhancing
inter-regulatory coordination and promoting financial sector development.
4. It is headed by the Union Finance Minister.
Fugitive Economic Offender
1. Nirav Modi, Vijay Mallya have been declared as the fugitive economic offenders (FEO) under the Fugitive
Economic Offenders Act.
2. A person is declared as a fugitive economic offender (FEO) if,
a) An arrest warrant has been issued against him for any specified offences where the value involved is over
Rs 100 crore
b) He has left the country and refuses to return to face prosecution.
3. A Fugitive Economic Offender is a person declared by a 'Special Court' set up under the Prevention of
Money-laundering Act (PMLA), 2002.
4. Upon declaration as an FEO, properties of a person are confiscated and vested in the central government,
free of encumbrances.
5. Economic offences relate to fraud, counterfeiting, money-laundering, and tax evasion, among others.
Currently, various laws contain provisions to penalise such offences. These include,
i) the Prevention of Money-Laundering Act (PMLA), 2002 which prohibits money-laundering
ii) the Benami Properties Transactions Act, 1988 which prohibits benami transactions
iii) the Companies Act, 2013 which punishes fraud and unlawful acceptance of deposits.
Predatory Pricing
1. Ministry of Aviation has recently warned that some predatory pricing is happening in airfares and other
airlines can shut down if it continues.
2. Various trader associations have also said that major e-commerce companies have also been indulged in
such policies.
3. Predatory pricing is a strategy whereby a major company in an industry with more financial strength
prices its goods or services at rock-bottom levels, so that no rivals can compete with it.
4. Then, other companies incur huge losses and is forced out of the business.

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5. In India, the Competition Act of 2002 lays down the ground-rules on what constitutes predatory pricing.
‘Predatory pricing’ figures in the section on abuse of dominant position by a market player.
6. Predatory price is specifically defined as sale or goods or services at a price below the cost of production,
with a view to reduce or eliminate competition.
National Statistical Office
1. Government merged the National Sample Survey Office (NSSO) with the Central Statistics Office (CSO)
under the Ministry of Statistics and Programme Implementation (MoSPI).
2. It was in line with the proposed National Policy on Official Statistics. The policy suggested to treat NSSO
and CSO as a single entity called the National Statistical Organisation (NSO).
3. The merger seeks to streamline and strengthen the present nodal functions and to bring in more synergy
by integrating its administrative functions within the ministry.
4. It is responsible to conduct large-scale sample surveys in diverse fields on All India basis. It is headed by
the Director-General.
About NSSO
- It was one of the largest organisations which used to conduct socio-economic surveys in the country.
- It was set up in 1950. It was formerly called the National Sample Survey Organisation.
About CSO
- It was responsible for co-ordination of statistical activities in India and evolving and maintaining
statistical standards.
- It is headed by the Director-General who is assisted by Five additional Director-Generals

Taskforce on Direct Tax

1. Task force on direct tax code has recently submitted its report to the Ministry of Finance. The taskforce
was headed by Akhilesh Ranjan.
2. It was tasked to overhaul the old Income tax Act and draft the new Direct Tax Law.
3. It is believed that the task force has suggested changes in the slab for personal income tax as well as
corporate tax.
4. Direct taxes are the taxes under which the incidence and impact of taxation fall on the same person. They
are paid directly to the government by the taxpayer.
5. The taskforce is also understood to have given its recommendation on three contentious issues for the
corporate,
a) Tax on long term capital gain (LTCG)
b) Dividend distribution tax (DDT)
c) Minimum alternative tax.
Current scenario
1. Currently, the personal income tax structure has three categories,
a) For people below the age of 60,
b) For people above the age of 60 but less than 80
c) For people of 80 years and above
2. The first category has four slabs. Second category has the basic slab of ₹3 lakh while the third category
has ‘nil’ rate for income up to ₹5 lakh.

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Financial Market

Essar Steel Sale

1. Supreme Court has recently cleared the sale of Essar Steel to ArcelorMittal.
2. The court has also clarified important aspects of insolvency resolution that were differently interpreted by
the National Company Law Tribunal (NCLT).
3. It upheld
a. the primacy of financial creditors over operational creditors in the repayment waterfall.
b. the Committee of Creditors as the deciding body on commercial issues, including the repayment waterfall
in an insolvency resolution.
4. It also stated that 330-day limit for resolution is not fixed and can be extended if needed. Extension of
time should be granted if parties proves delay has been caused by legal proceedings.
Operational creditors
- They are vendors and companies who have dues from a distressed company.
- They are assumed to be unsecured creditors, unlike the secured financial creditors like banks.
Financial creditors
- They are basically entities like banks that have provided funds to the corporate.
- Their relationship with the entity is a pure financial contract, such as a loan or debt security
Repayment waterfall
- It is a repayment system by which senior lenders receive principal and interest payments from a borrower
first, and subordinate lenders receive principal and interest payments after.

National Company Law Appellate Tribunal

The National Company Law Appellate Tribunal (NCLAT) declared the removal of Cyrus P. Mistry as “illegal”
and ordered his reinstatement.
About NCLAT
1. It was constituted on June 1, 2016 under Section 410 of the Companies Act, 2013.
2. It replaced the erstwhile Company Law Board.
3. It was conceived as the dedicated appeals forum for
a. resolving corporate law disputes and
b. speeding up the resolution by reducing the burden of High Courts in such matters.
Functions of the NCLAT
1. The NCLAT serves as the appellate body for those aggrieved by decisions made by
a. National company law tribunal including in matters under Insolvency and Bankruptcy Code (IBC).
b. The Competition Commission of India
c. The Insolvency and Bankruptcy Board of India under Sections 202 and 211 of the Insolvency and
Bankruptcy Code (IBC).
Composition
1. It is established in New Delhi
2. It initially comprised of five members:
a. Chairperson and
b. Two members each on the judicial and technical sides.
3. The Centre this year added a total of four new members to the NCLAT — two each in judicial and technical
capacities.
4. The government has also decided to set up a bench of the appellate tribunal at Chennai.
Qualifications
1. The chairperson must have been
a. a judge of the Supreme Court of India or

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b. a Chief Justice of a High Court.

2. A judicial member must have been
a. a judge of a High Court or
b. a judicial member of the NCLT for five years.
3. A technical member must
a. possess proven ability and standing in domain knowledge and
b. have an experience of not less than 25 years in areas such as law, industrial finance, industrial
management, investment, accountancy, labour matters or corporate restructuring.
Appeals process
1. A party aggrieved by a ruling by the above-mentioned bodies can file an appeal against it within 45 days
of receipt of a copy of the order.
2. An extension of a further 45 days is allowed if the NCLAT is satisfied that the appellant had enough cause
that prevented the filing of the appeal within the stipulated period.
3. The NCLAT’s orders can, in turn, be challenged in the Supreme Court, within 60 days.
T. N. Manoharan taskforce
The task force was set up for the development of a secondary market for corporate loans.
About the taskforce
1. It was headed by the chairman of Canara Bank T. N. Manoharan.
2. It has recommended an online loan sales platform to conduct auctions. It is because the underutilized
potential of secondary market and absence of systematic loan sales platform.
3. It recommended that a Self-regulatory body (SRB) of participants should be formed to finalize detailed
modalities for the secondary market for corporate loans.
a) SRB will oversee the proposed secondary market, standardize loan documentation, and promote growth,
liquidity, efficiency and transparency.
b) The SRB may be set up as an association by scheduled commercial banks, public financial institutions
and other related entities.
c) The report says that SRB may be incorporated as a Section 8 company under the Companies Act, 2013.
d) It must be set up within three months from the date of acceptance of the recommendations.
4. It has also recommended setting up a central loan contract registry.
Secondary Market
- It refers to a market where securities are traded after being initially offered to the public in the primary
market and/or listed on the stock exchange.
- The stock exchanges along with a host of other intermediaries provide the necessary platform for trading
in secondary market and also for clearing and settlement.
- The securities are traded, cleared and settled within the regulatory framework prescribed by the
Exchanges and the Securities and Exchange Board of India (SEBI).

SEBI’s financial autonomy

1. The Government of India proposed to transfer surplus money with the Securities and Exchange Board of
India (SEBI) to the Consolidated Fund of India (CFI).
2. Government proposed amendments to the Securities and Exchange Board of India Act, 1992 that are
seen as affecting SEBI’s financial autonomy. SEBI has a surplus of ₹3,170 crore as per its 2017 balance
sheet.
CFI
- It is the most important of all government accounts. This fund was constituted under Article 266 (1) of the
Constitution of India.
- All revenues received by the government and expenses made by it, excluding the exceptional items, are
part of the Consolidated Fund.
- Exceptional items are met from the Contingency Fund or the Public Account.
- No money can be withdrawn from this fund without the Parliament’s approval

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3. Amendments required that after 25% of its surplus cash in any year is transferred to its reserve fund
which would be used by the organization. SEBI will have to transfer the remaining 75% to the government.
4. Lack of financial autonomy can affect SEBI’s plans to improve the quality of its operations by investing in
new technologies.
SEBI
- It is the regulator for the securities market in India owned by the Government of India.
- It was established in April 1992 in accordance with the provisions of the Securities and Exchange Board
of India Act, 1992.
- It seeks to protect the interests of investors in securities and to promote the development of the
securities market.

Report on Black Money

1. The standing committee on Finance has submitted to parliament a report titled ‘Unaccounted income and
wealth both inside and outside the country’.
2. The report was prepared based on reports of the Special Investigation Team (SIT) constituted on Black
Money and reports on the estimation of unaccounted money by various institutions.
3. SIT on Black Money was constituted in 2014 as per the Supreme Court order.
4. It is chaired by Justice (Retd) M.B. Shah whereas Justice (Retd) Arijit Pasayat is the vice chairman.
Highlights of the reports
1. There is a variation in the estimation of unaccounted income ranging from 7 % to 120% of the reported
GDP.
2. Unaccounted income is found to be highest in real estate, mining, pharmaceuticals, pan masala, gutka
and tobacco industry, bullion and commodity markets, film industry, educational institutes and
professionals.
3. The securities market and manufacturing also showed a high incidence of unaccounted income.
Financial Service Providers
1. Ministry of Corporate Affairs has notified the Insolvency and Bankruptcy (Insolvency and Liquidation
Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
2. It provides a framework for bringing systemically important financial service providers (FSP) under the
purview of the Insolvency and Bankruptcy Code (IBC).
3. These rules aim to provide a generic framework for insolvency and liquidation proceedings of
systemically important FSPs excluding banks.
4. The rules were notified under Section 227 of the Insolvency and Bankruptcy Code.
5. This section enables the Central government to notify FSPs for insolvency and liquidation proceedings in
consultation with the financial sector regulators.
New rules
1. Only a regulator will be allowed to refer a non-bank lender or housing financier to a bankruptcy tribunal.
2. But in the case of companies, companies can approach a tribunal on their own or can be brought into one
either by lenders or operational creditors such as material suppliers.
3. The bankruptcy tribunal will appoint an administrator who will try to come up with a turnaround plan.
4. The administrator will be nominated by the regulator, such as the Reserve Bank of India (RBI) in the case
of non-bank lenders and housing financiers.
5. The registration or the licence of the financial services provider will not be suspended or cancelled during
the bankruptcy resolution process.
6. In case a turnaround of the financial institution is not possible, before deciding to liquidate it, the tribunal
will listen to the views of the regulator.

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Elephant Bonds
1. A government-appointed advisory group has suggested issuance of 'Elephant Bonds' wherein people
declaring undisclosed income would have to mandatorily invest half of that amount in these securities.
2. It recommended the tenure of the bonds should be 25-year and the fund should be utilised only for
infrastructure projects.
3. The panel was headed by economist Surjit Bhalla.
4. This is basically an amnesty scheme for bringing the unaccounted wealth or black money back to India.
Social Stock Exchanges
1. The Securities and Exchange Board of India (SEBI) said that it has constituted a working group on Social
Stock Exchanges (SSE) under the chairmanship of Ishaat Hussain.
2. The working group would make recommendations with respect to possible structures and mechanisms
of SSEs within the securities market domain.
3. It would examine how to facilitate the raising of funds by social enterprises and voluntary organizations.
4. A social stock exchange is understood as a platform that allows investors to buy shares in a social
enterprise that has been vetted by the exchange.
5. It would encourage banks, NBFCs and other investors to participate in the growth journey of the social
enterprises
MCA21
1. It is an e-Governance initiative of Ministry of Company Affairs (MCA), Government of India.
2. It enables an easy and secure access of the MCA services to the corporate entities, professionals and
citizens of India.
3. It is designed to fully automate all processes related to the proactive enforcement and compliance of the
legal requirements under,
a) Companies Act, 1956
b) New Companies Act, 2013
c) Limited Liability Partnership Act, 2008
4. It enables the business community to register a company and file statutory documents quickly and easily.

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External Sector

Change in FDI Norms

The Central government has announced the new Foreign Direct Investment (FDI) norms.
2. Notified norms are
a) Extending the available 100% FDI under the automatic route in the coal mining sector (till now permitted
only for captive consumption).
b) 100% FDI for contract manufacturing under the automatic route.
c) Easing local sourcing norms for overseas investors in the Single Brand Retail Trading (SBRT) business.
3. These norms have been brought to tackle economic slowdown and weak investment activity in India.
4. The government has also set a goal of ensuring India becomes a $5 trillion economy within the next five
years, the overall consumptive capacity needs to be raised manifold to undergird demand growth.
Current scenario
1. Foreign Direct Investment inflows have slowed since 2016-17 with the growth rate falling 3% in 2017-18
and 1% in 2018-19.
2. FDI inflows are contracting as global supply chains are shifting base due to the trade war between the
U.S. and China. These have relocated to Vietnam, Taiwan, Malaysia, and Indonesia.
3. India has failed to attract these firms due to its poor infrastructure, rigid land and labour laws, crisis in the
banking sector and a lack of structural economic reforms.
4. The fall in the FDI growth rate can also be attributed to India’s unilateral termination of bilateral
investment treaties (BITs) with more than 60 countries in 2016.
Sovereign External Borrowing
1. Government of India has announced to raise a part of its gross borrowing in external markets.
2. A government bond is a debt instrument that the government undertakes with the promise to pay periodic
interest payments and repay the entire face value of the bond on the maturity date.
3. Overseas bonds are launched outside the domestic market. So far, the government has only issued bonds
in the domestic market.
4. Overseas borrowing allows the government to raise funds in such a way that there is enough domestic
credit available for the private sector.
5. However, there are risks of currency depreciation involved. it more expensive for India to repay its external
debt.
- Currency depreciation is the loss of value of a country's currency with respect to one or more foreign
reference currencies.
- Currency depreciation can occur due to factors such as economic fundamentals, interest rate
differentials, political instability or risk aversion among investors.
- It is typically in a floating exchange rate system in which no official currency value is maintained.
- Currency appreciation in the same context is an increase in the value of the currency.
6. India's sovereign external debt-to-GDP level is among the lowest globally at less than 5 per cent.
7. Sovereign external borrowing is also considered a cheap source of raising money by the government as
interest rates in advanced countries are very low.
Circular Economy
1. The ‘Circular Economy Symposium 2019' was organised by the Federation of Indian Chambers of
Commerce and Industry (FICCI).
2. Circular economy has the potential to generate 1.4 crore jobs in the next 5-7 years and create lakhs of
new entrepreneurs.
3. A circular economy is an alternative to a traditional linear economy (Make- Use- Dispose) in which
resources are kept in use for as long as possible.

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4. After the maximum use, the products and materials are recovered and regenerated at the end of each
service life.
5. This economic system is aimed at minimising waste and making the most of resources.
FICCI
- The Federation of Indian Chambers of Commerce and Industry is an association of business
organisations in India.
- It was established in 1927 on the advice of Mahatma Gandhi by GD Birla and Purshottamdas Das
Thakurdas.
- It is one of the largest, oldest and the apex business organizations in India.
- It is headquartered in New Delhi.

WTO Panel & Trade Dispute

1. A World Trade Organisation (WTO) panel ruled against India in a trade dispute over its subsidies to
exporters under various schemes.
2 The US had challenged export subsidies provided by India under five sets of schemes:
a. Export-Oriented Units, Electronics Hardware Technology Park and Bio-Technology Park Schemes.
b. Export Promotion Capital Goods (EPCG) Scheme.
c. Special Economic Zones (SEZ) Scheme.
d. Duty-Free Imports for Exporters Scheme (DFIS).
e. Merchandise Exports from India Scheme (MEIS).
3. These schemes allegedly violated certain provisions of WTO’s Subsidies and Countervailing Measures
(SCM) Agreement that prohibit subsidies that are contingent upon export performance.
SCM agreement
- It was framed in the Uruguay Round (1986-94) of General Agreement on Tariffs and Trade (GATT). GATT
was the precursor of the World Trade Organisation.
- It sets out the remedies, which WTO Members have against injurious subsidization and the procedures,
which they must follow.
- It provides detailed rules on the concepts of subsidization, actionable subsidies and material injury or
serious prejudice.
- It says a financial contribution by a government is not a subsidy unless it confers a benefit.

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4. According to the agreement, India was only exempt from this provision until it’s Gross National Product
per capita per annum reached $1,000.
5. The export subsidies consist of exemptions and deductions from customs duties and other taxes.
India and RCEP
India has decided to not join the RCEP pact because of some outstanding issues which remain unresolved.
About RCEP
1. The Regional Comprehensive Economic Partnership (RCEP) is a proposed trade deal that is being
negotiated between ASEAN countries and their Free Trade Agreement (FTA) partners.
2. Proposed RCEP includes,
a) ASEAN- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and
Vietnam
b) Six countries with ASEAN has free trade agreements (FTAs)- India, Australia, China, Korea, Japan, and
New Zealand.
3. The purpose of the deal is to create an integrated market spanning all sixteen countries.
4. RCEP countries account for almost half of the world’s population, contribute over a quarter of world
exports, and makeup around 30% of the global Gross Domestic Product.
India’s concerns
1. India states that there is inadequate protection against surges in imports. India’s industry has voiced
fears that cheaper products from China would flood the market.
2. India has also not received any credible assurances on its demand for more market access and also on
its concerns over non-tariff barriers.
3. India’s concerns on a possible circumvention of rules of origin were also not addressed. Rules of origin
criteria are used to determine the national source of a product.
4. There is a possibility for India’s trade deficit to increase.
Hongkong Convention
1. Cabinet Committee on Economic Affairs (CCEA) has approved the accession of India to Hongkong
convention for ship recycling.
2. It will help provide a boost to the ship-wrecking industry in India.
About the Convention
1. The International Maritime Organisation (IMO) adopted the Hong Kong International Convention for the
Safe and Environmentally Sound Recycling of Ships in 2009.
2. It is aimed at ensuring that ships being recycled after reaching the end of their operational lives don’t
pose any risks to human health and the environment.
3. The convention has been designed to try to improve the health and safety of current shipbreaking
practices. Shipbreaking is considered to be amongst the most dangerous of occupations.
4. Ship-breaking industry is largely concentrated in South Asia. India remains the leading market for
shipwrecking globally.
5. Alang-Sosiya shipbreaking yard in Gujarat handles around 450 ships every year.
7. India handles around five million gross tonnages annually, around 25% share of the world’s ship recycling
industry. Government has planned to nearly double this capacity by 2024.
About Recycling of Ships Bill, 2019
1. The Union Cabinet has approved the proposal for the enactment of Recycling of Ships Bill, 2019.
2. The proposed Bill restricts and prohibits the use or installation of hazardous material, which applies
irrespective of whether a ship is meant for recycling or not.
3. Periods for compliance are,
a) New ships- restriction or prohibition on the use of hazardous material will be immediate i.e. from the date
the legislation comes into force.
b) Existing ships- They will have a period of five years.

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4. Restriction or prohibition on the use of hazardous material would not be applied to warships and non-
commercial ships operated by Government.
5. Under the Bill, ship recycling facilities are required to be authorized and ships shall be recycled only in
such authorized ship recycling facilities.
6. Shipbreaking should be recycled in accordance with a ship-specific recycling plan.
Tax on tech Giants
1. The organisation of Economic Co-operation and Development (OECD) has proposed changes in the rules
for taxing Internet giants such as Facebook, Apple, Amazon, Netflix and Google(FAANG).
2. It is because these digital technology companies move their profits around the world to minimise tax bills.
These companies operate remotely and have high profits.
‘Unified approach’
1. OECD has come up with a “unified approach” for taxation of digital businesses. The approach would give
new taxing rights to countries with many users of such business models.
2. The approach aims to shift the standard of taxation from physical presence to sales in a particular
market.
3. It means the companies will have to pay more taxes in the markets in which they sell more. India is
among countries that rely on a significant economic presence model.
4. The proposal says that ‘new nexus’ would be based on sales. A ‘nexus’ in international tax refers to the
operating presence in a country that makes a company taxable.
5. The unified approach aims to complement the ‘Arm Length’s principle (ALP)’ with a formula-based
solution for market jurisdictions while leaving the existing transfer pricing rules in place.
ALP
- It is the condition or the fact that the parties of a transaction are independent and on an equal footing.
Such a transaction is known as an ‘Arm's-length transaction’.
- It is one of the key elements in international taxation as it allows an adequate allocation of profit taxation
rights among countries that conclude double tax conventions agreements.
- ALP is element of the Base Erosion and Profit Shifting (BEPS) project developed by the OECD

Developing Country Status

United States of America (USA) wants countries like India to be stripped off their ‘developing country’ status
in the WTO.
WTO’s categorisation
1. Under the WTO system, countries are generally designated as developed, developing, and least developed
countries (LDCs).
2. The LDC status of a country in the WTO is based on such status being recognized by the United Nations
(UN).
3. There is no mention of any criterion to determine a ‘developing country’ status.
4. Article XVIII of the General Agreement on Tariffs and Trade (GATT) recognises the importance of
progress of those countries that can only support low levels of development and are at the early stages of
development.
5. So, accordingly, countries self-designate themselves as ‘developing country’ to take advantage of
provisions like Article XVIII of GATT etc.
6. Around two-third members of WTO have designated themselves as ‘Developing countries.’
7. Benefits of Developing Country Status are
a) Increasing trade opportunities for developing countries
b) Insuring longer transitional periods to comply with WTO obligations
c) Affording technical assistance to countries
8. USA has proposed that any country that meets one of the following criteria shall not be eligible for
benefits:
a) membership of or seeking accession to OECD

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b) membership of G20
c) share in world exports exceeding 0.5% or classified as a high-income groups by the World Bank.
9. India is a member of the G20 and its share in world exports is around 1.7% as of early 2019. So, as per
these criteria, India will not qualify as a developing country.
Automatic Exchange of Information
Recently the exchange of banking information took place between India and Switzerland. This follows the
Automatic Exchange of Information (AEOI) agreement signed between them.
About AEOI
1. It enables the discovery of formerly undetected tax evasion and reduces the possibility for tax evasion.
2. It provides for the exchange of non-resident financial account information with the tax authorities in the
account holders’ country of residence.
3. Participating jurisdictions that implement AEOI send and receive pre-agreed information each year,
without having to send a specific request.
4. It will enable governments to recover tax revenue lost to non-compliant taxpayers.
5. It has been developed by the Organization for Economic Co-operation and Development (OECD).
OECD
- It is an intergovernmental economic organisation founded in 1961 to stimulate economic progress and
world trade.
- It brings together member countries and partners that collaborate on key global issues at national,
regional and local levels.
- There are 36 members of it. India is not member. The Headquarter of the OECD is located in Paris,
France.

OIC meet in Pakistan

Pakistan will hold a ministerial meeting of the 57-member Organisation for Islamic Cooperation (OIC) on
Jammu and Kashmir in April 2020.
About OIC
1.The Organisation of Islamic Cooperation is an international organization founded in 1969, consisting of 57
member states with 53 countries being Muslim-majority countries.
2. OIC is the second largest inter-governmental organization after the United Nations with a membership of
57 states spread over four continents.
3. It is the collective voice of the Muslim world. It endeavours to safeguard and protect the interests of the
Muslim world in the spirit of promoting international peace and harmony among various people of the world.
Agreement on Reciprocal Logistics Support
1. India and Russia are expected to conclude a mutual logistics agreement ‘Agreement on Reciprocal
Logistics Support (ARLS)’ soon.
2. Both countries are also expected to review the setting up of joint ventures for manufacturing spares for
Russian defence platforms in India.
3. ARLS was expected to be signed in September during a meeting between countries’ heads on the side-
lines of the Eastern Economic Forum (EEF) in Vladivostok, Russia.
About ARLS
1. These are administrative arrangements facilitating access to military facilities for the exchange of fuel
and provisions on the mutual agreement when the Indian military is operating abroad.
2. The agreement would enable Indian armed forces to deploy and transit Russian-origin defence systems
smoothly.
3. Both countries would be able to access each other’s ports and airbases. India can get access to the Arctic
circle using Russian Ports.
4. India has similar defence logistics sharing agreements with the USA and France.

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About EEF
1. It was established by the Russian Federation in 2015.
2. It seeks to support the economic development of Russia’s Far East and to expand international
cooperation in the Asia-Pacific region.
3. The fifth edition of Eastern Economic Forum was held in Vladivostok, Russia.
Chiang Mai Initiative
1. It is the first regional currency swap arrangement launched by the ASEAN+3 countries (China, Japan, and
South Korea) in 2000 at an annual meeting of the Asian Development Bank.
2. It aims to address the short-term liquidity difficulties in the region and to supplement the existing
international financial arrangements.
3. ASEAN members- Indonesia, Thailand, Singapore, Philippines, Malaysia, Vietnam, Brunei, Cambodia,
Myanmar, Laos.
World Gold Council
1. It is the market development organisation for the gold industry.
2. Their objective is to stimulate and sustain demand for gold.
3. It has 26 Members comprising the world’s gold mining companies.
4. The Retail Gold Insights 2019 report was released by the World Gold Council.
5. The report states that Gold is the third-most consistently bought investment, behind savings account and
life insurance.
World Customs Organization
1. India hosted the World Customs Organization (WCO) Asia Pacific Regional Contact Points (RCP) for the
fourth time.
2. Central Board of Indirect Taxes and Customs (CBIC) organized the event.
3. WCO is an inter-governmental organization involved in setting up principles and standards especially for
cross border procedures and customs.
4. It is headquartered in Brussels.
5. India is a member of the organization.
6. The Organization has divided the world into 6 regions to make the rules across borders of these regions
easier.
INSTEX Barter system
1. Recently six European countries have entered into INSTEX barter mechanism which is designed to
circumvent U.S. sanctions against trade with Iran by avoiding use of the dollar.
2. The mechanism functions as a clearing house allowing Iran to continue to sell oil and import other
products or services in exchange.
3. It was established in January 2019 by ‘E3-France, Germany, United Kingdom’ and countries party to the
2015 nuclear deal.
4. The 2015 deal set out the terms under which Iran would restrict its nuclear programme to civilian use in
exchange for the lifting of Western sanctions.
5. The system is based in Paris.

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Agriculture

Wastelands Atlas 2019

1. Union Ministry for Rural Development has released the ‘Wastelands Atlas 2019’, a reliable database on the
wastelands of the country.
2. It was published by the Department of Land Resources in collaboration with the National Remote Sensing
Centre (NRSC) of the Department of Space.
Need of the Atlas
1. India has 2.4% of the total land area of the World. It supports 18% of the World’s population.
2. The per capita availability of agriculture land in India is 0.12 ha whereas World per capita agriculture land
is 0.29 ha.
3. India has unprecedented pressure on the land beyond the carrying capacity. It is resulting in the
degradation of lands in the Country.
Highlights
1. It provides district and state-wise distribution of different categories of wastelands area including the
unmapped area of Jammu & Kashmir.
2. The changes in wastelands between 2008-09 and 2015-16 have been presented in the Atlas.
3. It states that the spatial extent of wastelands in India is 55.76 Mha (16.96 %) of the geographical area in
2015-16 as compared to 56.60 Mha (17.21%) in 2008-09.
4. There is a net conversion of 0.84 Mha (0.26%) of different wasteland categories in the country during
2008-09 to 2015-16.
5. A reduction in wasteland area was observed in the categories of land with dense scrub, waterlogged and
marshy land, sandy areas, grazing land and ravines.
6. The wastelands have undergone a positive change in the states of Rajasthan (0.48 Mha), Bihar (0.11
Mha), Uttar Pradesh (0.10 Mha), etc.
7. Majority of wastelands have been changed into categories of ‘croplands’ (0.64 Mha), ‘forest-dense /open’
(0.28 Mha), ‘forest plantation’ (0.029 Mha), ‘plantation’ (0.057 Mha) etc.
Rural Unemployment Trends
1. According to the Periodic Labour Force Survey 2017-18, the unemployment rate is rising since 2011-12
especially in rural areas.
2. Rural unemployment is due to a decline in agriculture growth. Since 2008-2009, there has been zero or
negative growth in the majority of years.
3. There are also other issues such as low export growth to the state of the banking sector. Main reason for
the lack of demand is poor agricultural performance.
About PLFS
1. It is a new regular employment-unemployment survey launched by the Ministry of Statistics and
Programme Implementation during April, 2017.
2. The objective of PLFS is to measure the dynamics in labour force participation and employment status in
the country.
3. The behaviour of labour market depends on the trend and pattern of the overall economy
Milk Safety and Quality Survey
1. National milk sample safety quality survey has been released by the Food Safety and Standard Authority
of India (FSSAI).
2. It covered both organized such as retailers and processors etc. as well as non-organised local dairy
farms, milk vendors and milk mandis etc. sectors.
FSSAI
- It is an autonomous body established under the Ministry of Health & Family Welfare, Government of India.
- It has been established under the Food Safety and Standards Act, 2006 which is a consolidating statute
related to food safety and regulation in India.

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3. The survey states that both raw and processed samples were found non-compliant on account of low fat
or low SNF (solid not fat) or both.
4. Most of the milk sold both in raw and processed form was fit for human consumption.
5. The survey states contamination was a more serious problem than adulteration. Aflatoxin-M1 is the
prominent adulterant.
6. Tamil Nadu, Delhi and Kerala were the top three States where Aflatoxin residue was found the most.

Aflatoxin M1 (AFM1)
1. Aflatoxins are toxins produced by certain fungi which are generally found in agricultural crops like maize,
peanuts, cotton seed, and others.
2. They are carcinogenic in nature. According to FSSAI standards, the permissible limit of aflatoxins in milk
is 0.5 µg/kg.
3. It comes in the milk through feed and fodder that are currently not regulated in the country.
4. Currently, there is no proper lab to test this residue in the country and efforts are being made to invest in
testing machines.
Farmer Field Schools
1. Farmer Field Schools have become popular in various parts of Maharashtra because of the quality
guidance provided by them.
2. These schools were developed by the Food and Agriculture Organization (FAO) as an alternative to the
top-down way of providing extension under the Green revolution.
3. This has been in practice for a few decades in Southeast Asia.
4. It involves giving focused guidance to small groups of farmers in their fields by way of learning-by-doing
exercises.
5. These schools are mostly held on farms only. Agriculture department staff guides the farmers on various
local issues.
About FAO
1. It is a specialized agency of the United Nations that leads international efforts to defeat hunger. It serves
both developed and developing countries.
2. It acts as a neutral forum where all nations meet as equals to negotiate arguments and debate policy.
3. It works in over 130 countries worldwide. It is headquartered in Rome, Italy.
4. Five strategic Objectives of the FAO
a) Help eliminate hunger, food insecurity and malnutrition
b) Make agriculture, forestry, and fisheries more productive and sustainable
c) Reduce rural poverty

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d) Enable inclusive and efficient agricultural and food systems

e) Increase the resilience of livelihoods to threats and crises
Irrigation in India
1. Water is the critical input of agriculture and about 80% of the current water use is drawn by agriculture.
2. Net irrigated area accounts for 48.8% for the total net sown area and remaining 51.2% is under rainfed.
3. Out of the net irrigated area, about 40% is irrigated through canal systems and 60% is irrigated through
groundwater.
4. Gap between Irrigation Potential Created (IPC) and Irrigation Potential Utilized (IPU) is growing, and
distribution of water over the length of the canal system is uneven.
5. Indiscriminate withdrawal of groundwater has resulted in decline of groundwater table in North-Western
and Southern regions.
5. Groundwater development in the Eastern region is sub-optimal. Punjab, Rajasthan, Haryana and Delhi are
the regions with overirrigation.
Water Resource of India
1. India with a geographical area of 328 M ha supports more than 18% of the world’s population but has only
4.2% of freshwater resources.
2. The country receives annual precipitation (including snowfall) of almost 4000 billion cubic meter (BCM),
which results into estimated average water potential of 1869 BCM.
3. Per capita annual water availability has declined almost 3/4th from 1950 to 2014 and likely to reduce
further.
Zero Budget Natural Farming
1. At Conference of Parties to the UN Convention to Combat Desertification, India mentioned its focus on
ZBNF to ensure soil health.
2. Union Budget also referred to Zero Budget Natural Farming (ZBNF) as an innovative idea in doubling
farmers’ income.
About ZBNF
1. The basic concept is that over 98 per cent of the nutrients required by crops for photosynthesis such as
CO2, nitrogen, water and solar energy etc. are supplied from the air, rain and sun.
2. Only the remaining 1.5-2 per cent nutrients need to be taken from the soil and converted from ‘non-
available’ to ‘available’ form (for intake by the roots) through the action of microorganisms.
3. To enable the microorganisms to do this, farmers must apply ‘Jiwamrita’ (microbial culture) and
‘Bijamrita’ (seed treatment solution).
4. ‘Mulching’ (covering plants with a layer of dried straw or fallen leaves) and ‘Waaphasa’ (giving water
outside the plant’s canopy) to maintain the right soil temperature-moisture-air balance.
5. For insect and pest management, ZBNF recommends the use of ‘Agniastra’, ‘Brahmastra’ and ‘Neemastra’
are concoctions based mainly on urine and dung from local cows.
6. As all these components don’t have to be purchased, it makes farming practically ‘Zero-budget’.
Data Bank of Farmers
1. The Department of Agriculture, Cooperation and Farmers Welfare have constituted a Task Force to
develop a comprehensive Farmers’ Database.
2. The Database is for better planning, monitoring, strategy formulation and smooth implementation of
schemes for the entire country.
3. This Centralised Farmers Database shall be useful for various activities like
a. Issuing soil health cards
b. Dissemination of crop advisories to the farmers
c. Precision farming
d. Smart cards for farmers to facilitate e-governance
e. Crop insurance, settlement of compensation claims
f. Grant of agricultural subsidies, community/village resource centres etc.
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Contract farming
1. Tamil Nadu has become the first State in the country to enact a law on contract farming to the
Agricultural Produce and Livestock Contract Farming and Services Act.
2. It would safeguard the interests of farmers when there is a bumper crop or during major fluctuation in
market prices.
About the farming
1. Contract farming refers to varied formal and informal agreements between producers and processors or
buyers.
2. It includes loose buying arrangements, simple purchase agreements and supervised production with input
provision, with tied loans and risk coverage.
3. Contract farming usually involves the following basic elements - pre-agreed price, quality, quantity or
acreage (minimum/maximum) and time.
4. It can cover a whole range of activities in the entire Agri-value chain from pre-production to production to
post-production.
20th Livestock Census
1. Ministry of Fisheries, Animal Husbandry and Dairying has released the 20th Livestock Census report.
2. It aims to provide holistic data on the livestock in the country to various stakeholders such as
agriculturists, traders, entrepreneurs, dairying industry and masses in general.
3. The Livestock Census has been conducted in the country periodically since 1919-20. The Livestock
Census covers all domesticated animals and its headcounts.
Highlights:

a) The total Livestock population is 535.78 million in the country showing an increase of 4.6% over Livestock
Census-2012
b) Total Bovine population (Cattle, Buffalo, Mithun and Yak) is 302.79 Million in 2019 which shows an
increase of about 1% over the previous census.

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c) The total number of cattle in the country in 2019 is 192.49 million showing an increase of 0.8 % over
previous Census.
d) The total buffaloes in the country is 109.85 million showing an increase of about 1.0% over previous
Census.
e) The total Milch animals (in-milk and dry) in cows and buffaloes is 125.34 million, an increase of 6.0 %
over the previous census.
f) The total sheep in the country is 74.26 million in 2019, increased by 14.1% over previous Census.
g) The Goat population in the country in 2019 is 148.88 million showing an increase of 10.1% over the
previous census.
h) The total Pigs in the country is 9.06 Million in the current Census, declined by 12.03% over the previous
Census.
i) The total poultry in the country is 851.81 million in 2019, registered an increase of 16.8% in the total
poultry.
‘Reducing Food Loss and Waste’ Report
Recently, ‘Reducing Food Loss and Waste’ Report was released by the World Resources Institute (WRI) with
the support of the Rockefeller Foundation.
About the report
1. It quantified global food wastage.
2. Nearly one-third of the food that is produced each year goes uneaten which costs over $940 billion.
2. Uneaten food is responsible for emitting about 8% of greenhouse gases into the atmosphere.
3. A Global Action Agenda that calls on governments, companies, farmers, and consumers to collectively
overcome the world’s food loss and waste problem.
About WRI
- It is a global research non-profit organization that was established in 1982 and headquartered in
Washington, United States of America.
- It aims to conserve the natural resources are at the foundation of economic opportunity and human well-
being.
- It aspires to create a world where the actions of the government, business, and communities combine to
eliminate poverty and sustain the natural environment for all people.
- It was started by Gus Spieth with funding from the John D. and Catherine T. MacArthur Foundation.

Food Subsidy
1. Central Government underpaid the food subsidy bill to the Food Corporation of India (FCI) in 2018-19.
2. The difference between the cost of FCI’s overall operations and sales realization through the public
distribution system is reimbursed by the government as the food subsidy bill.
About FCI
- It is the main agency for procuring food directly from farmers at the minimum support prices announced
by the government from time to time.
- It also implements the public distribution system and maintains buffer stocks of food grains.
- It was established in 1964.
3. The underpayment of the food subsidy bill compels FCI to raise funds at a huge cost from external
sources such as cash credit (CC) and short-term loans from banks.
4. CC facility is provided by a consortium of 63 banks led by the State Bank of India and is secured by a
guarantee from the central government.

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Water Management Issues

1. NITI Aayog released the ‘Strategy for New India @75’ document which defines clear objectives of water
management by 2022-23.
2. Effective strategic planning must satisfy three essential requirements.
a) Acknowledge and analyse past failures
b) Suggest realistic and implementable goals
c) Implementation of the goals within the time frame.
3. Current situation
a) Annual precipitation in India, including snowfall, is the main source of water.
b) About 53.3 per cent of the total precipitation is lost due to evapo-transpiration.
c) Surface water has more utilizable water resource potential than ground water potential.
d) Per capita annual water availability in the country has decreased from 1816 cubic metres in 2001 to 1544
cum in 2011.
As per the Falkenmark Index, one of the most commonly used measures of water scarcity,
If the amount of renewable water in a country is
below 1,700 cu m per person per year, the country is said to be experiencing water stress;
below 1000 cu m it is said to be experiencing water scarcity.
4. Goals to be achieved by 2022-23
a) Provide adequate [rural: 40 litres per capita per day (lpcd) and urban 135 lpcd] and safe drinking water
(piped) and water for sanitation for citizens and livestock.
b) Provide irrigation to all farms with improved on-farm water-use efficiency.
c) Provide water to industries, encourage industries to utilize recycled/treated water and ensure zero
discharge of untreated effluents from industrial units.
d) Create additional water storage capacity to ensure full utilization of the utilizable surface water resources
potential of 690 billion cubic metres (bcm)

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Industry and Infrastructure

Funding for Housing

1. The government approved a Rs 25,000 crore ‘Alternative Investment Fund (AIF)’ to help complete stalled
housing projects. It also includes projects involving bad loans.
2. The aim is to boost growth by steering consumption in real estate and associated sectors. This will
generate employment as well as revive the demand for cement, iron and steel industries.
About AIF
1. This fund seeks to provide relief to distressed homebuyers and rekindle animal spirits in the ailing realty
sector.
2. Government of India will invest Rs 10,000 crore in the fund and the remaining Rs. 15,000 crore will be
given by LIC and the State Bank of India (SBI) and other institutions.
3. The AIF will act as a special window to provide loans to over 1,600 incomplete affordable and middle-
lower income housing projects.
4. The projects need to be registered in RERA (Real Estate Regulation and Development Act) and their net
worth should be positive.
5. It is a category II AIF and will not undertake borrowing activities other than to meet day-to-day operational
requirements.
Alternative Investment Fund (AIF)
- It is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian
or foreign, for investing them in accordance with a defined policy.
- Over 300 such funds have been registered with SEBI since 2012 when the AIF guidelines were notified.
Categories
Under SEBI guidelines, AIFs operate in three categories.
a) Category I AIFs invest in start-up or early-stage ventures, SMEs, infrastructure or other areas which the
government or regulators consider as economically desirable.
b) Category II AIF includes real estate funds, private equity funds, and funds for distressed assets. Such
funds are prohibited from raising debt except for meeting day-to-day requirements.
c) Category III AIFs are those investing with view to make short-term returns and include hedge funds.

KABIL
Tt was announced that a new company namely Khanij Bidesh India Ltd. (KABIL) would be set.
About KABIL
1. It is a joint venture of three Central Public Sector Enterprises namely,
i) National Aluminium Company Ltd.(NALCO)
ii) Hindustan Copper Ltd.(HCL)
iii) Mineral Exploration Company Ltd. (MECL)
2. KABIL aims to ensure a consistent supply of critical and strategic minerals to Indian domestic market.
3. It would also help in realizing the overall objective of import substitution.
4. KABIL would carry out identification, acquisition, exploration, development, mining and processing of
strategic minerals overseas for commercial use.
5. It will help in building partnerships with other mineral-rich countries like Australia and those in Africa and
South America.
6. The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30.
About the three companies
1. NALCO
a) It is a Navratna CPSE under Ministry of Mines.
b) It was established in 1981 with its registered office at Bhubaneswar, Odisha.

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c) It aims to sustainably grow multi-fold in Mining, Alumina and Aluminium business along with select
diversification in Minerals, Metals and Energy sectors.
d) It is one of the largest integrated primary producers of aluminium in Asia.
2. Hindustan Copper Limited
a) It is a public sector enterprise of the Government of India was incorporated in 1967.
b) It has the distinction of being India's only vertically integrated copper producing company encompassing
mining, beneficiation, smelting, refining and casting of refined copper metal.
c) The Company markets copper cathodes, copper wire bar, continuous cast copper rod and by-products.
3. Mineral Exploration Company Ltd
a) It was established as an autonomous Public Sector Company in October 1972
b) It comes under the administrative control of Ministry of Mines, Government of India for systematic
exploration of minerals.
c) It seeks to bridge the gap between the initial discovery of a prospect and its eventual exploitation.
Indian Startup ecosystem
1. The Reserve Bank of India (RBI) conducted a pilot survey on Indian startup sector during November 2018
to April 2019.
2. Around three-fourths of respondents were from the states of Karnataka, Maharashtra, Telangana, Delhi
and Tamil Nadu.
Criteria for start-ups in India
- Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability
Partnership.
- Period of existence and operations should not be exceeding 10 years from the Date of Incorporation.
- Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its
Incorporation.
- Entity should not have been formed by splitting up or reconstructing an already existing business.
- Should work towards development or improvement of a product, process or service and/or have scalable
business model with high potential for creation of wealth and employment.
3. According to another report of NASSCOM, India is the third largest startup ecosystem in the world.
National Association of Software and Services Companies (NASSCOM) is a trade association of Indian
Information Technology and Business Process Outsourcing industry.
4. As per the report, startups have created an estimated 60,000 direct jobs and 1.3-1.8 lakh indirect jobs in
2019.
5. India also has the third-highest number of Unicorns (companies with a valuation of over $1 billion) in a
single country in the world.
Committee on MSME sector
1. The committee set up to undertake a comprehensive review of the micro, small and medium enterprises
(MSME) sector has recently submitted its report to the RBI.
2. It has examined issues such as access to finance and infrastructure bottlenecks that continue to plague
the sector.
Concerns
1. Lack of access to finance continues is an impediment to the sector’s growth.
2. Bank lending continues to be disproportionately high towards large entities, leaving a huge funding gap
for MSMEs.
3. High level of bad loans, which range between 8 to 11 percent in the MSME sector.
Recommendations
1. Public sector procurement from MSMEs be routed through the Government e-Market (GeM) portal to
bring transparency in procurement and to quicken payments.

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GeM platform
- It is a dynamic, self-sustaining and user-friendly portal for making procurement by Government officers.
- Using the platform, common user goods and services can be procured.
- It is a completely paperless, cashless and system driven e-market place that enables procurement of
common use goods and services with minimal human interface.
- It was launched in August 2016
2. Amendment in the MSME Development Act to ensure that all MSMEs mandatorily upload their invoices to
an information utility.
3. The committee has proposed shifting to a cash flow-based lending model to tackle the issue of absence
of detailed financial information and lack of collateral
4. It also suggested doubling the collateral free loan limit to Rs 20 lakh, up from the current limit of Rs 10
lakh under Mudra scheme.
Bharat Bond ETF
Union Cabinet approved the plan to create and launch India’s first corporate bond exchange-traded fund
(ETF) — Bharat Bond ETF.
Features
1. It will comprise a basket of bonds issued by the CPSEs, CPSUs, CPFIs, and other government
organizations and all will be initially AAA-rated bonds.
2. The unit size of the bond is ₹1,000 and retail investors can invest.
3. It will have a fixed maturity date and initially, they will be issued in two series of three years and 10 years.
Significance
1. Provide safety (underlying bonds are issued by CPSEs and other government-owned entities), liquidity
(tradability on exchange) and predictable tax efficient returns,
2. Help deepen India’s bond market as it will encourage the participation of those retail investors who are
currently not participating in bond markets due to liquidity and accessibility constraints.
3. They can offer an additional source of borrowing requirements, apart from bank financing.
4. It will expand the investor base through retail and HNI [high net worth individual] participation, which can
increase demand for their bonds.
Tripura’s first SEZ
1. Ministry of Commerce and Industry has notified the setting up of the first ever Special Economic Zone
(SEZ) in Tripura.
2. It will be a Sector-Specific Economic Zone for Rubber based industries, textile and Apparel Industries,
bamboo and Agri-food Processing Industries
3. Tripura Industrial Development Corporation (TIDC) Ltd. will be the developer of the SEZ.
4. After it is set up, 100 percent Income Tax exemption will be provided on export income for SEZ units
under Section 10AA of the Income Tax Act for the first 5 years.
5. Also, 50 percent exemption will be provided for the next 5 years and 50 percent of the ploughed back
export profit for another 5 years.
Project Silver Line
1. Ministry of Railways has granted in-principle approval for the ‘Silver Line’ project in Kerala.
2. The project is proposed by the Kerala government aims to cut the travel time between the two corners of
the states.
3. It will connect major districts and towns of Kerala with semi high-speed trains that will run on their own
tracks.

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4. The project is proposed as Kerala’s road networks are very clogged and there is also a rise in a number of
accidents and casualties.
5. The Kerala Rail Development Corporation (K-Rail) will be the nodal agency. K-Rail is a joint venture
between the Ministry of Railways and the Kerala government.
Coal Bed Methane (CBM)
1. Ministry of Coal has asked the Coal India Limited (CIL) to produce 2 MMSCB (million metric standard
cubic metres) per day of coalbed methane (CBM) gas in the next 2 to 3 years.
2. In 2018, the Union Cabinet relaxed the rules for Coal India Limited (CIL) to extract natural gas lying below
coal seams to boost production.
About coalbed methane
1. CBM is extracted from unconventional gas reservoirs where gas is extracted directly from the rock that is
the source of the gas.
2. The methane is held underground within the coal and is extracted by drilling into the coal seam and
removing the groundwater.
3. The resulting drop in pressure causes the methane to be released from the coal.
4. It is regarded as a clean alternative fuel with significant prospects.
Distribution of CBM
1. India has the fifth-largest coal reserves in the world.
2. Coal and CBM reserves are found in 12 states of India, with the majority in Gondwana sediments of
eastern India.
3. According to the Ministry of Petroleum and Natural Gas, India’s CBM resources are estimated at around
2,600 billion cubic metres (BCM).
4. Currectly, CBM projects are present in
a. Raniganj coalfield areas, West Bengal
b. Parbatpur block in Jharia coalfield, Jharkhand and
c. East and West Bokaro coalfields, Jharkhand
d. Damodar Koel valley and Son valley (Sonhat North and Sohagpur East and West blocks) are prospective
areas for CBM development.

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Uses of CBM
1. According to the Central Mine Planning and Design Institute (CMPDI), CBM can be used
a. for power generation,
b. as compressed natural gas (CNG) auto fuel,
c. as feedstock for fertilisers, cement production, rolling mills, steel plants, and
d. for methanol production.
East Coast Economic Corridor
1. Asian Development Bank (ADB) has extended loan to strengthen power connectivity between the
southern and northern parts of the Chennai–Kanyakumari Industrial Corridor (CKIC).
2. CKIC is part of the East Coast Economic Corridor (ECEC) in Tamil Nadu.
3. ECEC is India's first coastal economic corridor developed with the help of ADB.
4. It passes through the West Bengal, Odisha, Andhra Pradesh and Tamil Nadu connecting Kolkata and
Kanyakumari.
5. ECEC will support
a) Make in India campaign
b) Port-led industrialization under the Sagar Mala initiative and
c) Act East Policy by linking domestic companies with the East and Southeast Asia.
National Infrastructure Pipeline
1. Report of the Task Force on National Infrastructure Pipeline for 2019-2025 was released.
2. NIP will enable a forward outlook on infrastructure projects which will create jobs, improve ease of living,
and provide equitable access to infrastructure for all, thereby making growth more inclusive.
3. NIP includes economic and social infrastructure projects.
4. The Task Force has given recommendations on changes required to several key sectoral policies and
other reform initiatives to be initiated by Central and State Governments.
5. A monitoring mechanism has also been suggested to ensure timely implementation.
6. These recommendations are in line with achieving the GDP of $5 trillion by 2024-25, as it required
stepping up of annual infrastructure investment.
7. India needs to spend about $1.4 trillion over these years on infrastructure, while in the past decade , India
invested about $1.1 trillion on infrastructure.
8. The total project capital expenditure in infrastructure sectors in India during the fiscals 2020 to 2025 is
projected at over Rs 102 lakh crore.
9. During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways
(13%) amount to around 70% of the projected capital expenditure in infrastructure in India.
Multi Modal Terminal
1. Prime Minister inaugurated India’s second riverine Multi Modal terminal built at Sahibganj in Jharkhand.
2. This is the second of the three Multi Modal Terminals being constructed on river Ganga under Jal Marg
Vikas Project (JMVP).
3. The Multi-Modal terminal at Sahibganj opens up industries of Jharkhand and Bihar to the global market
and provide Indo-Nepal cargo connectivity through waterways route.
4. It would play an important role in transportation of domestic coal from the local mines in Rajmahal area
to various thermal power plants.
5. In November 2018, Prime Minister Modi dedicated the first Multi Modal Terminal at Varanasi.
About JMVP
1. It aims to develop the stretch of River Ganga between Varanasi to Haldia for navigation of large vessels
upto 1500-2000 tonnes weight.
2. The objective is to promote inland waterways as a cheaper and more environment friendly means of
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3. Inland Waterways Authority of India (IWAI) is the project Implementing Agency. World Bank supports the
project financially.
4. States covered: Uttar Pradesh, Bihar, Jharkhand, West Bengal.
National Investment and Manufacturing Zone
1. Recently the Government of India approved the setting of ‘National Investment and Manufacturing Zones
(NIMZ)’ in Kalinganagar, Odisha.
2. NIMZs are one of the important instruments of National Manufacturing Policy, 2011.
3. They are envisaged as large areas of developed land with the requisite eco-system for promoting world
class manufacturing activity.
4. The main objective of Special Economic Zones is promotion of exports, while NIMZs are based on the
principle of industrial growth in partnership with States and focuses on manufacturing growth and
employment generation.
5. NIMZs are different from SEZs in terms of size, level of infrastructure planning, governance structures
related to regulatory procedures, and exit policies.
VAHAN Database
1. Ministry of Road Transport and Highways has reiterated the necessity of linking all vehicle data with the
VAHAN database.
2. This move is expected to avoid harassment and inconvenience to citizens.
About the VAHAN database
1. It is the National Register of E-services of the Ministry of Road Transport and Highways.
2. It compiles the vehicle's data from the central register and different State Registers.
3. It provides a nationwide search over the digitized data of Registered Vehicles to authorized users using
the vehicle's details such as registration number, chassis number, etc.
4. It takes care of activities of Vehicle Registration, leaving the Transport Department to deal with more
important business issues.
About PUC certificate
1. It is a certificate that is given to the vehicle after having passed a PUC test. PUC stands for Pollution
Under Control.
2. The certificate affirms that the emissions passed from the vehicles meet the pollution control standards.
3. Under the Central Motor Vehicle Rule, 1989, a PUC certificate is a mandatory document required for a
vehicle.
Delay in Hydropower Projects
1. Around 103 private hydropower projects in Arunachal Pradesh totalling about 35 gigawatts (GW) are still
to take off despite the government’s Act East policy focus.
2. The government has been pushing an economic agenda, especially with respect to long-pending
infrastructure projects, because of the geo-economics of the north-eastern region.
3. Reasons for the delay
a) Resettlement of project-affected persons and the ability to withstand tectonic movements requires a
substantive investment of time and money.
b) The private sector companies lack the capacity to manage such projects.
4. Potential in Arunachal Pradesh
a) Arunachal Pradesh has the greatest hydropower potential among Indian states, which is about 60% of
India’s potential.
b) India’s north-eastern region has a total hydropower generation potential of about 58GW. Of this,
Arunachal Pradesh alone accounts for 50.32GW.
c) India at present has an installed generation capacity of 357.87GW, of which 13% or about 45.4GW comes
from hydropower projects.

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National Electricity Distribution Company

1. The public sector companies NTPC and Power Grid Corporation of India have formed a joint venture to
set up a National Electricity Distribution Company (NEDC).
2. The entry of central public sector entity into the distribution segment can have a positive impact as state
discoms are facing losses.
3. Issues of state Discoms
a) Despite several measures, discom segment remains the weakest link in the power chain affecting the
entire power sector.
b) The Ujjwal DISCOM Assurance Yojana (UDAY) was launched to turn around the loss-making state
discoms.
c) But still, discoms continue to face issues such as inadequate tariff hikes, high aggregate technical and
commercial losses, inadequate and untimely subsidy disbursements, etc.
d) These issues have also caused stress in the banking sector.
4. Purpose of the NEDC
a) The National Electricity Distribution Company will serve as the central electricity buying agency.
b) It aims to bring relief to power producers, bring stranded capacity back to life, ensure timely payment and
address the issue of stressed assets in power generation.
c) It can procure electricity at competitive rates, thereby benefiting the end consumers with cheap fares.

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Schemes

ICEDASH & ATITHI

Ministry of Finance has announced new services- ICEDASH and ATITHI
ICEDASH
1. ICEDASH stands for “Indian Customs EODB Dashboard”.
2. It is an Ease of Doing Business monitoring dashboard developed by the customs department in
collaboration with the National Informatics Centre.
3. It can help the public in seeing the daily Customs clearance times of import cargo at various ports and
airports.
4. It seeks to provide an effective tool that helps businesses compare clearance times across ports and plan
their logistic.
5. It can reduce interface and increase the transparency of Customs functioning.
ATITHI
1. It is a mobile app developed by the Customs department for international travellers to file the Customs
declaration in advance.
2. It would create a tech-savvy image of India Customs and would encourage tourism and business travel to
India.
2. It will facilitate hassle-free and faster clearance by Customs at the airports and enhance the experience of
international tourists and other visitors at our airports.
3. Passengers can use this app to file a declaration of dutiable items and currency with the Indian Customs
even before boarding the flight to India.
MUDRA Yojana
1. Bad loans have been rising under Pradhan Mantri MUDRA Yojana (PMMY).
2. MUDRA is a flagship scheme of Government of India to fund the deserved marginalized citizens by
extending affordable credit to them.
3. It was launched by the Government of India in 2015. Any Indian Citizen who has a business plan for a non-
farm sector income generating activity can avail loans at affordable rates.
4. Micro Units Development & Refinance Agency Ltd (MUDRA) is set up to offer affordable products.
Following products are offered under the scheme,
a) Shishu- Covering loans up to Rs. 50,000
b) Kishor- Covering loans above Rs. 50,000 and up to 5 lakh
c) Tarun- Covering loans above 5 lakh and up to 10 lakh
5. It would be ensured that at least 60% of the credit flows to Shishu Category Units and the balance to
Kishor and Tarun Categories.
6. According to Reserve Bank of India (RBI) estimates, category-wise Non-Performing Assets (NPA)
distribution are,
a) Shishu loans amounts are about 12.39%
b) Kishor category loans are about 10.19%, at the end of fiscal 2019.
National e-Assessment Scheme
1. Ministry of Finance inaugurated the National e-Assessment Centre to monitor the National e-Assessment
Scheme (NEAC).
2. The scheme seeks to introduce the faceless e-assessment to impart greater efficiency, transparency and
accountability in the assessment process.
About Faceless e-Assessment
1. Faceless e-assessment means there would be no physical interface between the taxpayers and the tax
officers.
2. Completely electronic communication would be established between tax officials and taxpayers.

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3. Under the new system of faceless e-Assessment, taxpayers will receive notices on their registered
accounts.
4. The replies to the notices can be sent by the taxpayers on their own by uploading the same on the
designated web portal.
About National e-Assessment Centre
1. It will be an independent office that will look after the work of the e-Assessment scheme.
2. There would be a NEAC in Delhi headed by Principal Chief Commissioner of Income Tax.
3. There are eight Regional e-Assessment Centres to be set up at Delhi, Mumbai, Chennai, Kolkata
Ahmedabad, Pune, Bengaluru and Hyderabad.
L2Pro India Platform
1. L2Pro stands for ‘Learn to Protect, Secure and Maximize Your Innovation’. It was launched in both digital
forms- website and mobile application.
2. It has been developed by ‘Cell for IPR Promotion and Management (CIPAM)’ in collaboration with
Qualcomm and National Law University (NLU), Delhi.
3. These products will be useful to the startup community which is vital to the Indian economy.
4. These products will help the youth, innovators, entrepreneurs and small and medium industries (SMEs) in
understanding IPRs.
5. The L2Pro has been successfully implemented in Germany, the United Kingdom, Italy and France.
6. The platform contains various modules for three different levels – Basic, Intermediate, Advanced.
7. Each module comprises of e-text for understanding concepts, short animated videos of the concepts,
links to additional resources on the subject and quizzes.
About CIPAM
1. It is a professional body under the aegis of Department for Promotion of Industry and Internal trade
(DPIIT), Ministry of Commerce and Industry.
2. It ensures focused action on issues related to IPRs.
3. It takes the steps for furthering IPR awareness, commercialization and enforcement.
4. It conducts the training and sensitization programmes for enforcement agencies and Judiciary of IPRs.

India Urban Data Exchange

1. Union Ministry of Housing and Urban Affairs has planned to set up the India Urban Data Exchange (IUDE).
2. It would be initially set up for the 100 smart cities and further expand to cover 500 cities by 2022 and all
urban centres in the country by 2024.
3. Under IUDE the government is planning to make a wide range of data- from health, education, finances to
social aspects- of all urban local bodies public by 2024 and eventually monetizing it.
4. This data would help cities plan their interventions better and fund infrastructure. All cities would have
data officers and data coordinators by 2024.
5. The monetization would be under data privacy and other related laws.
6. IUDE would function as a conduit for the safe transfer of data between urban local bodies, academia,
private sector and civil society.

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Smart Cities Mission

- It is an urban renewal and retrofitting program by the Government of India with the mission to develop
around 100 smart cities across the country making them citizen friendly and sustainable.
- Union Ministry of Urban Development is responsible for implementing the mission in collaboration with
the state governments of the respective cities.
- The strategic components of area-based development in the Smart Cities Mission are city improvement
(retrofitting), city renewal (redevelopment) and city extension (greenfield development).
- It was launched in 2015.

Digital certificate of origin system

1. Ministry of Commerce launched the common digital platform for the issuance of certificates of origin and
a steel import monitoring system (SIMS).
2. These initiatives aim to revive the export sector.
Origin System
1. A certificate of origin (CO) is a document declaring in which country a commodity or good was
manufactured.
2. The certificate of origin contains information regarding the product, its destination, and the country of
export.
3. Digital certificate of origin system is a single access point for all exporters and agencies concerned.

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4. Certificate of Origin will be issued electronically which can be in the paperless format if agreed to by the
partner countries.
5. Authorities of partner countries will be able to verify the authenticity of certificates from the website.
6. At present, Certificate of Origin is issued from the various notified agencies around the country through
manual processes.
Steel Import Monitoring System (SIMS)
1. The aim is to give advance information about steel imports to governments and stakeholders.
2. The system has been developed in consultation with the Ministry of Steel on the pattern of the US Steel
Import Monitoring and Analysis (SIMA) system.
3. Stakeholders need to register online on the system. No human intervention is required.
Bharat Bill Payment System
1. Reserve Bank of India has expanded the scope of the ‘Bharat Bill Payment System’.
2. The scope of BBPS has been expanded to include all categories of billers who raise recurring bills on a
voluntary basis. However, prepaid recharges are still not included.
3. BBPS payments can be made using cash, cheques as well as through digital methods such as internet
banking, debit, credit card.
4. National Payments Corporation of India (NPCI) functions as the authorized Bharat Bill Payment Central
Unit (BBPCU).
About NPCI
- It is an umbrella organization for all retail payments in India.
- It is an initiative of Reserve Bank of India and Indian Banks’ Association (IBA) under the provisions of the
Payment and Settlement Systems Act, 2007.
- It has been incorporated as a ‘Not for Profit’ Company under the provisions of Section 25 of Companies
Act 1956 (at present, Section 8 of Companies Act 2013).
- It is focused on bringing innovations in retail payment systems through the use of technology.
About IBA
- It is a representative body of management of banking in India and the association of Indian banks and
financial institutions.
- It works proactively for the growth of a healthy, Professional banking and financial services industry.
- It was formed in September 1946. Currently, the total Membership of the Association is about 251.
About BBPS
1. It is a Reserve Bank of India conceptualized system driven by the National Payments Corporation of India
(NPCI).
2. It offers interoperable and accessible bill payment service to consumers via digital (bank channels) as
well as through a network of agents & bank branches.
3. It currently covers repetitive payments for everyday utility services such as Electricity, Water, Gas,
Telecom (mobile post-paid, landline post-paid, broadband), Direct-to-Home
Company Law Committee
The Government constituted the Company Law Committee on the issues pertaining to the implementation
of the Companies Act.
About the committee
1. The committee was constituted to examine the issues pertaining to the implementation of,
a) Companies Act, 2013
b) Limited Liability Partnership Act, 2008
2. It is aimed at providing Ease of Doing Business to corporates and to foster improved corporate
compliance for stakeholders.
3. The committee is headed by Shri Injeti Srinivas and tasked to address emerging issues that have an
impact on the working of corporates in the country.

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4. The Committee initially has a tenure of one year from the date of its first meeting.
Key recommendations
a) ‘Green Channel’ should be introduced to enable fast-paced regulatory approvals for a vast majority of
mergers and acquisitions.
b) Combinations arising out of the insolvency resolution process under the Insolvency and Bankruptcy Code
will also be eligible for “Green Channel” approvals.
c) Introducing a dedicated bench in National Company Law Appellate Tribunal (NCLAT) for hearing appeals
under the Competition Act.
d) Introduction of express provisions to identify ‘hub and spoke’ agreements, i.e. unlawful agreements, as
well as agreements that don’t fit within typical anti-competitive structures.
Sabka Vishwas - Legacy Dispute Resolution Scheme
1. Ministry of Finance announced the ‘Sabka Vishwas- Legacy Dispute Resolution Scheme’ in the Union
Budget 2019-20.
2. The scheme provides an opportunity for taxpayers to close their pending disputes relating to legacy
Service Tax and Central Excise cases that are subsumed under Goods and Sales Tax.
3. Main components of the scheme
a) Dispute resolution - aimed at liquidating the legacy cases of Central Excise and Service Tax that are
subsumed in GST and are pending in litigation at various forums.
b) Amnesty
i) It offers an opportunity for taxpayers to pay the outstanding tax and be free of any other consequences
under the law.
ii) The scheme provides relief in the tax dues for all categories of cases as well as full waiver of interest,
fine, penalty. There is also a complete amnesty from prosecution.
SAMARTH Scheme
1. Some states signed pacts with the Ministry of Textiles to partner with it for skilling about four lakh
workers as part of the 'Samarth’ scheme.
2. SAMARTH stands for Scheme For Capacity Building In Textile Sector.
About the scheme
1. It is a flagship skill development scheme approved in continuation to the Integrated Skill Development
Scheme for 12th Five Year Plan.
2. The objectives of the scheme are,
i) To provide demand-driven, placement-oriented skilling program.
ii) To incentivize the efforts of the industry in creating jobs in the organized textile and related sectors
iii) To promote skilling and skill up-gradation in the traditional sectors through respective sectoral
divisions/organizations of Ministry of Textile
iv) To provide livelihood to all sections of the society across the country.
3. The Scheme would target to train 10 lakh persons over a period of 3 years (2017-20).
4. A centralized web-based Management Information System (MIS) has been put in place for monitoring and
implementation of the scheme.
PM – KISAN Yojana
As per the recent reports, Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme has transferred financial
benefits to around 7.6 crore farmers till November-end 2019.
About the scheme
1. It is a central sector scheme for the families of farmers across the country. The Centre had implemented
PM-Kisan with effect from December 1, 2018.
2. It is basically an income support scheme for farmers to enable them take care of expenses related to
agriculture and allied activities as well as domestic needs.
3. The scheme provides eligible beneficiaries ₹6,000 a year, in three instalments of ₹2,000 each. The fund is
directly transferred to the bank accounts of the beneficiaries.

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4. Eligibility
a) All land holding eligible farmer families are to avail of the benefits under this scheme.
b) The scheme defines family as husband, wife and minor children
c) The entire identification of the family rests with the state and Union Territory governments.
5. Excluded members
a) Members of the farmer family who are/were former or present holders of any constitutional posts
b) Former/present ministers/state ministers or former/present members of the Lok Sabha or Rajya Sabha
or any legislative assembly/councils.
c) All serving or retired officers and employees of Central/ State Government Ministries
/Offices/Departments
d) Regular employees of the Local Bodies (Excluding Multi-Tasking Staff /Class IV/Group D employees)
5. The Common Service Centres (CSCs) have been authorized to do registration of the farmers for the
Scheme upon payment of fees.
UDAY scheme
Reports have shown that the losses of electricity distribution companies have been rising.
About the scheme
1. Ministry of Power launched Ujjwal DISCOM Assurance Yojana (UDAY) in November 2015 to help loss-
making discoms turn around financially with support from their State governments.
2. Under the scheme, States are asked to take over three-fourths of the debt of their respective discoms.
3. They issues ‘UDAY bonds’ with maturity period of 10-15 years to raise money to pay off the banks.
4. Remaining 25% of the discom debt is dealt within one of the two ways,
a) Conversion into lower interest rate loans by the lending banks
b) Be funded by money raised through discom bonds backed by State guarantee.
5. UDAY aims at reforming the power sector. The discoms’ poor finances are constraining their electricity
purchases, which in turn is forcing generation companies to idle their plants.
National Agriculture Market (e-NAM)
Ministry of Agriculture has recently announced that more than 1.64 crore farmers have registered on e-NAM
platform till the end of June.
About e-NAM
1. It is an online trading platform for agricultural commodities in India. The market facilitate farmers, traders
and buyers with online trading in commodities.
2. It aims to bring reforms in the Agri- marketing sector and promote online marketing of Agri commodities
across the country and to provide maximum benefit to the farmers.
3. This market is helping in better price discovery and provide facilities for smooth marketing of their
produce.
4. It removes information asymmetry, increase transparency in the transaction process and enhance
accessibility to markets across the country.
Project Utkarsh 2022
1. The Reserve Bank of India (RBI) board have finalized a three- year roadmap to improve regulation and
supervision, among other functions of the central bank.
2. Utkarsh 2022 is medium-term strategy which is in line with the global central banks’ plan to strengthen
the regulatory and supervisory mechanism.
3. Idea behind the project is that Reserve Bank of India plays a proactive role and takes pre-emptive action
to avoid any crisis.
4. It also wants to avoid events such as IL&FS debt default issue which can erode the confidence of
consumers.
5. This strategy is based on the recommendations of internal committee chaired by Viral Acharya.

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Inter Creditor Agreement

Many lenders have been signing an ‘Inter Creditor Agreement (ICA)’ in an effort to resolve its debt.
About the ICA
1. It provides the ground rules for the finalization and implementation of a resolution plan (RP) for borrowers
with credit facilities from more than one lender.
2. Under the framework, a Resolvency Plan has to be agreed to by 75% of the lenders by value of debt and
60% by number of lenders.
3. Under the agreement, the projects amounting Rs.50-500 crore are dealt with. They are provided standstill
period of roughly 180 days.
4. Purpose of the standstill period is to give the senior creditor an exclusive period of time during which it
may assess its rights.
5. ICA is part of the ‘Project Sashakt’ approved by the government to address the problem of resolving bad
loans.
Project Sashakt
- It is a strategy to deal with non-performing assets in India. It was recommended by Sunil Mehta
committee.
- It aims to strengthen the credit capacity, credit culture and credit portfolio of public sector banks.
- Bad loans of up to ₹ 50 crore will be managed at the bank level.
- For bad loans of ₹ 50-500 crore, banks will enter an inter-creditor agreement, authorizing the lead bank to
implement a resolution plan or refer the asset to National Company Law Tribunal.
- For loans above ₹ 500 crore, the panel recommended an independent ‘Asset management company
(AMC)’.

KUSUM Scheme
1. Recently the Kisan Urja Suraksha Evam Utthan Mahabhiyan (KUSUM) was launched. It aims to provide
energy sufficiency and sustainable irrigation access to farmers.
2. The scheme aims to add solar and other renewable capacity of 25,750 MW by 2022. It has been launched
by the Ministry of New and Renewable Energy (MNRE).
3. The scheme opens a stable and continuous source of income to the rural landowners for a period by
utilisation of their dry/uncultivable land.
4. The Scheme consists of three components:
a) Component A: 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants of
individual plant size up to 2 MW.
b) Component B: Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps of individual pump
capacity up to 7.5 HP.
c) Component C: Solarisation of 10 Lakh Grid-connected Agriculture Pumps of individual pump capacity up
to 7.5 HP.
5. State Nodal Agencies(SNAs) of MNRE coordinates with States/UTs, Discoms and farmers for
implementation of the scheme.
6. India has committed to increase the share of installed capacity of electric power from non-fossil-fuel
sources to 40% by 2030.
Inclusive Growth Dividend Scheme
1. India Policy Forum proposed an ‘Inclusive Growth Dividend (IGD)’ to address the challenges during
income transfers to the poor.
2. IGD would monthly transfer the equivalent of 1% of India’s gross domestic product (GDP) per capita,
around ₹500, to every household in India (roughly₹110 per citizen).
3. This amount can significantly boost consumption among the rural poor and will have negligible effect on
the rich people also.
4. IGD can generate a 10% boost in consumption for the bottom 30% of India’s rural population.

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5. The total cost of the IGD would be around 1% of India’s GDP. It is significantly lower than other proposed
income transfers schemes.
New Delhi International Arbitration Act
1. New Delhi International Arbitration Centre (NDIAC) Bill, 2019 was recently passed by both houses of
Parliament and given assent by the President.
2. The Act provides for the establishment of the ‘New Delhi International Arbitration Centre (NDIAC)’ to
better manage domestic and international arbitration in the country
3. Availability of quality expertise and reduction of costs incurred will facilitate India becoming a hub for
Institutional Arbitration.
4. It was recommended by Justice B.N. Srikrishna committee to take over the International Centre For
Alternative Dispute Resolution (ICADR) and develop it as arbitration centre.
- Government of India appointed a ten-member committee headed by Justice B.N. Srikrishna to identify
key data protection issues in India and recommend methods of addressing them.
- It was constituted in 2017.
5. ICADR is an existing institution which has been established in the year 1995 using public funds.
Composition
1. Chairperson
a) Who has been a Judge of the Supreme Court / Judge of a High Court / an eminent person.
b) Qualification: Having special knowledge and experience in the conduct or administration of arbitration
law or management,
c) Appointment Process: Appointed by the Central Government in consultation with the Chief Justice of
India.
2. Members: There will be two Full time or Part time Members
3. Also, one representative of a recognised body of commerce and industry shall be chosen on rotational
basis as Part time Member.
4. Secretary, Department of Legal Affairs, Financial Adviser nominated by the Department of Expenditure
and Chief Executive Officer, NDIAC will be ex-officio Members.
Nandan Nilekani committee
A committee appointed by the RBI had submitted its suggestions on promoting digital payments. The
committee is chaired by Nandan Nilekani.
Recommendations
1. To encourage digital payments, the committee has suggested a host of measures, including elimination
of charges, round-the-clock RTGS and NEFT facility etc.
2. There should be no convenience fee on payments made to government agencies by customers.
3. Payment systems must use machine-driven, online dispute resolution systems to handle complaints.
4. The RBI and the government had to put in place an appropriate mechanism to monitor the digital payment
systems and make aggregated information based on blocks, and PIN code.
5. It must be made available to all players on a monthly basis so that they can make the necessary
adjustments.
6. It felt that customers must be allowed to initiate and accept a reasonable number of digital payment
transactions with no charges.

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Pradhan Mantri Kisan Maan Dhan Yojana

Prime Minister launched a pension scheme ‘PM Kisan Maan Dhan Yojana’ for farmers from Ranchi.
Objective:
1. To provide a social security net for all small and marginal farmers.
2. To cover around 5 crore beneficiaries in the first 3 years.
Salient Features:
1. A minimum fixed pension of Rs 3000 per month will be provided to the eligible small and marginal
farmers subject to certain exclusion causes on attaining the age of 60 years.
2. Will be a voluntary and contributory pension scheme.
3. Entry age: 18 to 40 years.
4. The beneficiary would be required to contribute Rs. 100 per month at median entry age of 29 years.
5. The Central government shall also contribute to the Pension Fund in equal amount.
6. Pension funds to be managed by Life Insurance Corporation (LIC) which will be responsible for the
pension pay out.
7. Farmers can also opt to allow contribution to be made directly from the benefits drawn from the PM-
KISAN scheme.
8. Online grievance redressal system for complete transparency.
India Design Council
1. The India Design Council (IDC) has launched two initiatives recently.
a) Chartered Designs of India (CDI)
b) Design Education Quality Mark (DEQM)
2. IDC is an autonomous body established under the Department for Promotion of Industry and Internal
Trade, Ministry of Commerce and Industry.
3. IDC is a national strategic body for multi-disciplinary design. It is involved in the promotion of design to
make India a design enabled country.
4. IDC is mandated to implement the National Design Policy and is committed to working towards raising
the standards of design education in India
Initiatives
1. CDI
a) It is envisaged as an institution that will establish and uphold the professional standards of design
practice in India.
b) The focus of CDI is the “Professional Designer” identified by a design qualification and or experience.
2. DEQM
a) This initiative will benchmark design education programs on predetermined standards.
b) The initiative will accord Design Education Quality Mark to institutions that meet the provisions of the
published standard.
Phase one agreement
1. United States of America and China announced that these countries had finally agreed to the ‘Phase one
agreement’ after a long trade war.
2. Under the agreement, China agreed to billions of dollars in agricultural purchases from the USA while the
USA agreed not to pursue a new round of tariffs.
3. These two major economies plan to sign this partial accord in the first week of January.
4. This agreement can help to boost and stabilize the global economy which is experiencing a slowdown.
This agreement will improve market sentiments.

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MSCI Index
1. India’s weightage in the MSCI Emerging Markets (EM) index has increased. This is due to the increase in
foreign investment limits in listed companies.
2. MSCI stands for Morgan Stanley Capital International.
3. The index is used to measure equity market performance in global emerging markets.
4. MSCI Emerging Market Index captures mid and large caps across more than two dozen emerging market
countries.
5. The index is a float-adjusted market capitalization index and represents 13% of global market
capitalization.
NIRVIK scheme
Emphasize is given on reducing industries’ dependence on imported goods by making use of the NIRVIK
scheme.
About the scheme
1. Export Credit Guarantee Corporation of India (ECGC) introduced the Export Credit Insurance Scheme
(ECIS) called NIRVIK to enhance loan availability and ease the lending process.
2. It is an insurance cover guarantee that will cover up to 90% of the principal and interest.
3. The cover will include both pre and post-shipment credit.
4. The ECGC currently provides credit guarantee of up to 60% loss.
5. The enhanced cover will ensure that Foreign and Rupee export credit interest rates will be below 4% and
8% respectively for exporters.
Extension of AMRUT mission
1. The Centre has decided to extend the mission period of its flagship initiative Atal Mission for
Rejuvenation and Urban Transformation (AMRUT) by two more years.
2. It has not been able to achieve the targets in the previously set target year.
About AMRUT mission
1. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is the revamped version of the
Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
2. The Mission will focus on the following Thrust Areas:
a. Water Supply.
b. Sewerage and septage management.
c. Storm Water Drainage to reduce flooding
d. Non-motorized Urban Transport.
e. Green space/parks.
Pradhan Mantri Gram Sadak Yojana
1. The central government has launched Phase III of Pradhan Mantri Gram Sadak Yojana (PMGSY).
2. The Phase-III of PMGSY aims at
a. consolidation of 1,25,000 Kms through Routes and Major Rural Links that connect habitations to Gramin
Agricultural Markets (GrAMs), Higher Secondary Schools and Hospital.
3. The funding pattern for the PMGSY-III will be
a. 60:40 between Centre and the States for States other than NE & Himalayan States
b. 90:10 for NE and Himalayan States as applicable for Central sponsored schemes.
5. In December 2019, a total of 1,53,491 rural road works have been completed under the PMGSY Scheme.
6. It connects 97.27% of the eligible and feasible habitations and adding up a road length of 6,07,900 Kms
across the country.
7. Out of the above, a road length of 36,063 Kms has been constructed using green technologies, which
includes Waste plastic and cold mix technology.

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Atal Bhujal Yojana (ATAL JAL)

1. ATAL JAL has been designed with the principal objective of strengthening the institutional framework for
participatory groundwater management.
2. It aims at bringing behavioural changes at the community level for sustainable groundwater resource
management in seven States, viz. Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan
and Uttar Pradesh.
3. ATAL JAL will promote panchayat led groundwater management and behavioural change with a primary
focus on demand-side management
4. The total outlay of the scheme is Rs. 6000 crore and will be implemented over a period of 5 years (2020-
21 to 2024-25).
5. 50% of the outlay shall be in the form of World Bank loan and be repaid by the Central Government. The
remaining 50% shall be through Central Assistance from regular budgetary support.
6. The entire World Bank's loan component and Central Assistance shall be passed on to the States as
Grants.
HS Code for Khadi
1. The Ministry of commerce and industries has allocated separate HS code for Khadi.
2. In the absence of separate HS code, the export of Khadi products was difficult to categorize and
calculate.
3. As a result, all the data regarding the export of Khadi used to come as a normal fabric under the textile
head.
4. HS code will enable to keep a constant eye on export figures and helps in planning export strategies.
5. HS Stands for Harmonized System and it is a six-digit identification code.
6. It was developed by the WCO (World Customs Organization) and customs officers use HS Code to clear
every commodity that enters or crosses any international border.
7. Khadi and Village Industries products are eco-friendly and natural and are in great demand in the
International Markets.
8. The Ministry of Commerce had accorded deemed Export Promotional Council Status (EPCS) to KVIC in
2006, to boost the export of Khadi products.
Patent Prosecution Highway programme
1. Patent Prosecution Highway (PPH) programme will be adopted by the Indian Patent Office (IPO). It has
been approved by the Union Cabinet recently.
2. IPO works under the Controller General of Patents, Designs & Trademarks (CGPDTM), India with patent
offices of various other interest countries or regions.
3. PPH programme would lead to the following benefits,
a) Reduction in time to dispose of patent applications.
b) Reduction in pendency of patent applications.
c) Improvement in quality of search and examination of patent applications.
CLAP
1. Ministry for Housing and Urban Affairs launched Credit-linked Subsidy Services Aawas Portal, CLAP.
2. The portal provides a transparent and robust real-time web-based monitoring system for credit-linked
Subsidy Services, CLSS, beneficiaries.
3. Using the portal, a beneficiary can track his application status in real-time.
4. It will be instrumental in addressing the grievances of beneficiaries in a much comprehensive and
organized manner.

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Bimal Jalan Panel

1. The RBI formed a committee chaired by former Governor Bimal Jalan to review its economic capital
framework.
2. The committee was tasked to suggest ways to transfer the quantum of excess to the government.
3. The panel recommended a clear distinction between the two components of economic capital,
i) Realized equity- It can be used for meeting all risks/ losses as it is primarily built up from retained
earnings.
ii) Revaluation balances- It can be reckoned only as risk buffers against market risks as it is unrealized
valuation gains.
4. The committee recognized that RBI’s provisioning for monetary, financial and external stability risks is the
country’s savings for a ‘Rainy day’- a monetary or financial stability crisis.
5. This risk provisioning made primarily from retained earnings is referred to as the Contingent Risk Buffer
(CRB). CRB should be within a range of 6.5% - 5.5% of the RBI’s balance sheet
6. CRB comprises 5.5 to 4.5% for monetary and financial stability risks and 1.0% for credit and operational
risks.
7. The committee recommended the ‘Surplus Distribution Policy’ which says only if realized equity is above
its requirement, the entire net income will be transferable to the Government.
8. Currently, the available realized equity stood at 6.8% of the balance sheet.
Future Prime Platform
1. The Ministry of Electronics and Information Technology approved the expansion of the 'Future Skills'
initiative to industry professionals, higher education students and government officials.
2. The expanded digital platform would be called Future Skills PRIME (Programme for Reskilling/Upskilling
of IT Manpower for Employability).
3. The programme aims to reskill two million professionals and potential employees & students in the
industry over a period of 5 years.
4. These skills include into the technologies involving artificial intelligence, virtual reality, robotic process
automation, internet of things, big data analytics, 3D printing, cloud computing etc.
5. It was launched in 2018 by the National Association of Software and Services Companies (NASSCOM).
PRAKASH portal
1. The Union Ministry for Power and Ministry of Coal have jointly launched PRAKASH (Power Rail Koyla
Availability through Supply Harmony) portal.
2. The Portal aims at bringing better coordination for coal supplies among all stakeholders viz,
a) Ministry of Power
b) Ministry of Coal
c) Coal India, Railways and power utilities.
3. This is an important step in ensuring adequate availability and optimum utilization of coal at thermal
power plants.
4. The portal is designed to help in mapping and monitoring entire coal supply chain for power plants,
a) Coal Stock at supply end (mines)
b) Coal quantities/ rakes planned
c) Coal quantity in transit and
d) Coal availability at power generating station

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Project SU.RE
1. The Union Ministry for Textiles has launched Project SU.RE as a move towards sustainable fashion. SU.RE
stands for ‘Sustainable Resolution’.
2. The SU.RE project is a commitment by India’s apparel industry to set a sustainable pathway for the Indian
fashion industry.
3. The project has been launched by the Ministry along with Clothing Manufacturers Association of India
(CMAI), United Nations in India, and IMG Reliance.
4. It is a five-point agenda for the industry to move towards fashion that contributes to a clean environment.
Motor Vehicles Act 2019
1. The Act aims to reduce road traffic fatalities in India by at least 50% by 2030. This target is set by the
United Nations.
2. The Act is based on the recommendations of the Group of Transport Ministers of States.
3. It has introduced heavy fines for drunken driving, driving without licence, dangerous driving, over-
speeding, etc. These penalties will be increasing by 10 per cent every year.
4. The new Act has extended the period for renewal of driving licences from one month to one year after the
date of expiry.
5. The Act provides for grant of licenses and permits related to motor vehicles, standards for motor vehicles,
and penalties for violation of these provisions.
6. It defines golden hour as the time period of up to one hour following a traumatic injury, during which the
likelihood of preventing death through prompt medical care is the highest.
7. The Act requires the central government to constitute a Motor Vehicle Accident Fund, to provide
compulsory insurance cover to all road users in India.
8. It also defines a good Samaritan as a person who renders emergency medical or non-medical assistance
to a victim at the scene of an accident.
9. It provides for a National Road Safety Board, to be created by the central government through a
notification to advise the central and state governments on all aspects of road safety.
10. However, State governments are free to make their own laws and rules.

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Reports and Indices

Ease of Doing Business Index

1. India has climbed 14 places and ranked 63 in the World Bank’s Ease of Doing Business 2020 index. Last
year, India jumped 23 places to secure the 77th position.
2. The Index measures the Ease of Doing business in around 190 countries based on an average of ten
indices, namely.
- Starting a business - Registering property
- Dealing with construction permits - Getting access to credit
- Trading across borders - Protecting minority investors
- Resolving insolvency - Paying taxes and
- Getting electricity - Enforcing contracts
2. India improved in four areas.
a) Starting a business- Due to abolished filing fees for the SPICe (Simplified Proforma for Incorporating a
Company Electronically) form.
b) Getting building permits- Initiatives such as single window for obtaining construction permits,
submission of labour inspection commencement.
c) Trading across borders- Availability of Post-clearance audits for exports and imports, integration of trade
stakeholders in a single electronic platform, upgradation of port infrastructures etc.
d) Resolving Insolvency- Successful implementation of the Insolvency and Bankruptcy Code for commercial
entities.
3. However, India lags in areas like enforcing contracts and registering property.
4. Top five countries- New Zealand, Singapore, Hong Kong, Denmark, South Korea.
World Economic Outlook 2019
International Monetary Fund has released the ‘World Economic Outlook 2019’. It is launched in two editions-
January and June.
Highlights of the report (January)
1. India’s growth projection is cut to 6.1 % for the financial Year 2020 amid a cyclical slowdown. It is 1.2%
down from its April edition.
2. The Indian economy is expected to pick up at 7.0% in 2020.
3. India’s economy decelerated more because of
a) Sector-specific weaknesses in the automobile sector and real estate
b) Uncertainty about the health of nonbank financial companies
4. The report downgraded the global growth in 2019 to 3%, the slowest since the global financial crisis.
About WEO
- It is a survey developed by the International Monetary Fund (IMF). It is usually published twice a year.
- It presents IMF staff economists’ analyses of global economic developments during the near and
medium-term.
- It gives an overview as well as a more detailed analysis of the world economy.
- The International Monetary Fund is an international organization that fosters global monetary
cooperation.
5. The global economic slowdown is happening due to following factors,
a) Rising trade barriers
b) Heightened uncertainty around trade and geopolitics
c) Strain in several emerging markets
d) Advanced economies’ ageing population
e) Low productivity growth

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July edition update

a) The report has cut India’s growth forecast for 2019-20 to 7% from its forecast in April of 7.3% on poor
demand conditions.
b) This edition also cut India’s growth forecast in 2020-21 to 7.2% from the previous estimate of 7.5%.
c) IMF has also cut its forecast for world GDP growth by 0.1 percentage point each in 2019 and 2020 to
3.2% and 3.5%.
Global Competitiveness Index 2019
India ranks high in terms of macroeconomic stability and market size.
About the index
1. The index is published by the World Economic Forum.
2. It is part of the Global Competitiveness Report which is designed to help policymakers, business leaders
and stakeholders shape their economic strategies in the Fourth Industrial Revolution era.
3. The index provides an opportunity for policymakers to assess their progress against the full set of factors
that determine productivity.
4. The index covers 141 economies on the set of twelve pillars. Pillars are further based on 103 indicators.
5. A country’s performance on the overall GCI results as well as each of its components is reported as a
progress score on a 0-to-100 scale. 100 represents an ideal stage.
Highlights of the 2019 index
1. Singapore is the topper of the index followed by the United States of America and Hong Kong.
2. Among the BRICS, China is the best performer and Brazil is the worst performer.
3. East Asia and the Pacific region are the most competitive in the world followed by Europe and North
America. Vietnam’s score has improved the most globally.
India’s performance
1. India has moved down 10 places to rank 68th on the annual global competitiveness index. The decline in
performance is largely due to improvements witnessed by several other economies.
2. India is among the worst-performing BRICS nations along with Brazil (71st rank).
3. India ranks high in terms of macroeconomic stability and market size while its financial sector is relatively
stable.
About the World Economic Forum
- It is an independent international organization committed to improving the state of the world by engaging
business, political, academicians, etc.
- The Forum strives to demonstrate entrepreneurship in the global public interest while upholding the
highest standards of governance.
- It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
4. India is also ranked high at 15th place in terms of corporate governance. It is ranked second globally for
shareholder governance.
World Intellectual Property Indicators report
UN’s World Intellectual Property Organisation (WIPO) released the World Intellectual Property Indicators
report (WIPI).
Highlights of the Report
1. Asia accounted for more than two-thirds of all patent, trademark and industrial design applications in
2018.
2. Innovators across the globe filed 3.3 million patent applications in 2018, up 5.2% for a ninth straight yearly
increase.

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Intellectual Property
- Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works;
designs; and symbols, names and images used in commerce.
- IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn
recognition or financial benefit from what they invent or create.
3. China alone accounted for almost half of all the world’s patent filings, with India also registering
impressive increases. Asia has become a global hub for innovation.
4. China was followed by the U.S., Japan, the Republic of Korea and the European Union. Together, these five
accounted for 85.3% of the world total.
5. Germany, India, the Russian Federation, Canada and Australia also featured among the top. Asia has
strengthened its position as the region with the greatest activity in patent filings.
6. North America accounted for just under one-fifth (19%) of the 2018 world total, Europe accounted for just
over one-tenth (10.9%).
About WIPO
- It is the global forum for intellectual property (IP) services, policy, information and cooperation. It is a self-
funding agency of the United Nations with 192 member states.
- It seeks to lead the development of a balanced and effective international IP system that enables
innovation and creativity for the benefit of all.
- It’s mandate, governing bodies and procedures are set out in the WIPO Convention (also known as
Stockholm), which established WIPO in 1967.
7. The combined share of Africa, Latin America and the Caribbean, and Oceania was 3.3% in 2018.
Broadband Readiness Index
1. The Department of Telecom (DoT) and the Indian Council for Research on International Economic
Relations (ICRIER) signed a MoU to develop a Broadband Readiness Index (BRI).
2. The first estimate will be made in 2019 and subsequently every year until 2022. BRI is in line with the
recommendation of the National Digital Communication Policy (NDCP) 2018.
NDCP 2018
- It envisions supporting India's transition to a digitally empowered economy and society by fulfilling the
information and communications needs of citizens.
- It seeks to establish a ubiquitous, resilient and affordable digital communications infrastructure and
services.
- The key objectives of the policy are
a) Broadband for all.
b) Creating four million additional jobs in the Digital Communications sector.
c) Enhancing the contribution of the Digital Communications sector to 8% of India's GDP.
d) Ensuring Digital Sovereignty.
e) Enhancing India's contribution to Global Value Chains
- These objectives are to be achieved by 2022.
About BRI
1. The BRI consists of two parts.
a) Part I will focus on infrastructure development based on the measurement of nine parameters such as
availability of state policy on IT and Towers etc.
b) Part II consists of demand-side parameters which will be captured through primary surveys. It will include
indicators such as households using computers with an internet connection etc.
2. The index will appraise the condition of the underlying digital infrastructure and related factors at the
State/Union territory level.
3. It will provide useful insights into strategic choices made by the States for investment allocations in ICT
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4. Index will encourage states to cross learn and jointly participate in achieving the overall objective of
digital inclusion and development in India.
World Investment Report
United Nations Conference on Trade and Development (UNCTAD) has recently released the World
Investment Report 2019.
Highlights
1. Investment in India rose by 6% to $42 billion. India attracted over 77% of the total foreign direct
investments that came to the South Asian region.
2. Sectors of Inflow: Manufacturing, communication, financial services and cross-border merger and
acquisition activities.
3. Cross-border mergers and acquisitions (M&As) grew in 2018 from a year ago, due to transactions in retail
trade, which includes e-commerce and telecommunication.
4. India may break into the league of top 20 countries for An outward direct investment (ODI) is a
outbound foreign direct investment (ODI) by the end-2019. business strategy in which a domestic
ODI of India was $11 billion in 2018. firm expands its operations to a foreign
country. This can take form as a green
5. More than 4,000 of the 5,400 special economic zones
field investment, a merger or acquisition,
(SEZs) in the world, are in developing countries in Asia.
or expansion of an existing foreign
6. China topped the list at 2,543 such zones, followed by facility.
Philippines (528), India (373).
About UNCTAD
1. It is a permanent intergovernmental body established by the United Nations General Assembly in 1964.
2. Its headquarters are located in Geneva, Switzerland. It has offices in New York and Addis Ababa.
3. It is part of the UN Secretariat. It reports to the UN General Assembly and the Economic and Social
Council.
4. It is a part of the United Nations Development Group (UNSDG). UNSDG serves as a high-level forum for
joint policy formation and decision-making. It meets twice a year.
Human Development Index 2019
1. The United Nations Development Programme (UNDP) released the Human Development Report (HDR)
along with Human Development Index (HDI).
2. The HDI measures average achievement in three basic dimensions of human development — life
expectancy, education and per capita income.
Rankings
1. India improved its rank to 129 in 2019 from 130 in 2018, out of 189 countries.
2. Norway topped the index followed by Switzerland, Ireland, Germany, Hong Kong (Germany and Hong Kong
both 4th position) and Australia.
3. Among India's neighbours, Sri Lanka (71) and China (85) are higher up the rank scale while Bhutan (134),
Bangladesh (135), Myanmar (145), Nepal (147), Pakistan (152) and Afghanistan (170) were ranked lower on
the list.
Fastest Growth in South Asia
1. South Asia was the fastest-growing region in human development progress with a 46% growth over 1990-
2018, followed by East Asia and the Pacific at 43%.
2. India’s HDI value increased by 50% (from 0.431 to 0.647), which places it above the average for other
South Asian countries (0.642).
Inequality-adjusted HDI
1. For inequality-adjusted HDI (IHDI), India’s position dropped by one position to 130.
2. India lost nearly half the progress (.647 to .477) made in the past 30 years.
3. The IHDI indicates percentage loss in HDI due to inequalities.
4. Group-based inequalities persist, especially affecting women and girls and no country has gender
equality.

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5. In the Gender Inequality Index (GII), India is at 122 out of 162 countries. China (39), Sri Lanka (86), Bhutan
(99), Myanmar (106) were placed above India.
6. The world is not on track to achieve gender equality by 2030 as per the UN’s Sustainable Development
Goals.
7. The report forecasts that it may take 202 years to close the gender gap in economic opportunity, one of
the three indicators of the GII.
New Index
1. A new index indicating how prejudices and social beliefs obstruct gender equality was introduced. It
shows that only 14% of women and 10% of men worldwide have no gender bias.
2. These biases have shown growth especially in areas where more power is involved, including in India,
affecting women’s empowerment.
3. New forms of inequalities will manifest in future through climate change and technological
transformation which have the potential to deepen existing social and economic divide.
IMD World Talent Ranking Report
1. India has slipped 6 places to 59th rank in the 2019 World Talent Ranking report.
2. It is released by the International Institute for Management Development (IMD), Switzerland.
3. The ranking is based on the performance in three main categories —
a. investment and development,
b. appeal
c. readiness.
Findings
India
1. India has slipped 6 places to 59 rank.
2. This is due to
a. low quality of life
b. low expenditure on education
c. negative impact of brain drain
d. the low priority of its economy on attracting and retaining talents.
3. India is also lagging behind BRICS countries – China (42nd), Russia (47th) and South Africa (50th).
4. There are other issues such as the effectiveness of the health system and women’s participation in the
labour force.
World
1. Switzerland retained its title as the world's top talent hub.
2. Denmark was placed second and Sweden, was in the third place.
3. Austria, Luxembourg, Norway, Iceland, Finland, the Netherlands and Singapore are among the top 10.
4. Europe lead the way in fostering the best conditions for competitiveness in a skills-scarce global
economy.
5. These countries have high levels of investments in education and superior quality of life.
6. Most leading economies emphasize long-term talent development by focusing on investment and
development.
7. This goes beyond academic aspects to encompass apprenticeships and employee training that ensures a
consistent alignment between talent demand and supply.
OECD Economic Outlook
1. Organisation for Economic Co-operation and Development (OECD) has trimmed recently its global
economic growth forecast in 2020 in its November edition of ‘Economic Outlook’.
2. It estimates that business activity around the world will expand by 2.9% next year, a decline of 0.1
percentage points from a previous forecast issued in September.
3. The reasons given for the economic slowdown are,

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a) Persistent policy uncertainty

b) Weak trade and investment flows
OECD
- The Organisation for Economic Co-operation and Development is an intergovernmental economic
organisation with 36 member countries.
- It was founded in 1961 to stimulate economic progress and world trade.
- It is headquartered in Paris, France.
- Most OECD members are high-income economies with a very high Human Development Index (HDI) and
are regarded as developed countries.

‘R&D Expenditure Ecosystem’ Report

Economic Advisory Council to the Prime Minister (EAC-PM) launched the ‘R&D Expenditure Ecosystem’
Report.
Overview
1. The report states that the growth in research and development (R&D) expenditure should be
commensurate with the economy’s growth.
2. R&D Expenditure growth should be targeted to reach at least 2% of the gross domestic product (GDP) by
2022.
3. The report says that the ministries at the Centre could be mandated to allocate some percentage of their
budget for developing and deploying technologies as per the respective priorities.
4. It pointed out that India’s public investment in R&D as a fraction of GDP has remained stagnant (0.6% to
0.7% of GDP) over the last two decades.
5. However, it is well below the major countries such as the United States (2.8%), China (2.1%), Israel (4.3%)
and Korea (4.2%).
6. It recommends that states partner with the Centre to jointly fund research and innovation programmes
through socially designed Central Sponsored Schemes(CSS).
7. The report pitches for creating 30 dedicated R&D Exports Hub and a corpus of Rs 5,000 crore for funding
megaprojects.
About EAC-PM
1. This body analyse any issue, economic or otherwise, referred to it by the Prime Minister and advising him
thereon.
2. The body addresses issues of macroeconomic importance and presenting views thereon to the Prime
Minister. This could be either Suo-motu or on reference from the Prime Minister or anyone else.
3. Currently, Bibek Debroy is the chairman of the council.
India Skills Report 2020
1. It has been launched recently by Wheebox, People Strong and Confederation of Indian Industry.
2. It says that there is an overall positive trend in talent supply as over 46% of the students surveyed are
found to be employable or ready to take-up jobs in 2019 against only 33% in 2014.
3. The most employable candidates are MBA pass outs with 54 % of the being found employable.
4. However, there has been a decline in the employability those coming out with engineering and technical
streams.
5. Maharashtra tops among the states in highest employability followed by Tamil Nadu, UP, Andhra and
Karnataka.
E-commerce Index 2019
1. India has ranked 73rd in a ‘Business-to-consumer E-commerce index’ that measures an economy's
preparedness to support online shopping.
2. The United Nations Conference on Trade and Development has released the ‘Business-to-Consumer
(B2C) E-commerce Index 2019’.
3. The index scores 152 nations on their readiness for online shopping. It highlights the need to improve the
reliability and availability of statistics, especially in developing countries.
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4. The index is calculated as the average of four indicators.

a) Account ownership at a financial institution or with a mobile-money-service provider.
b) Individuals using the Internet
c) Postal Reliability Index
d) Secure Internet servers
5. It has been topped by the Netherlands. European nations hold eight of the top 10 spots on the index.
LEADS Index 2019
1. Union Minister of Commerce and Industry has recently released ‘Leads Index 2019’.
2. The index seeks to establish the base line of performance in the logistics sector based on the perception
of users and stakeholders at the State level.
3. It provides the basis for stakeholder engagement, discussions and evolving action plan by various
agencies.
4. It is not an index of the performance of the State Government but may be used to assess the status of
logistics efficiency in each State.

5. The index is based on the analysis of perception with regard to nine parameters, including infrastructure,
quality of logistics, services, timeliness of cargo delivery, regulatory process and safety of cargo.
6. The top-ranking state in the logistics sector is Gujarat followed by Punjab and Andhra Pradesh.
7. Among the hilly Eastern States, Tripura is the top performer and among Union Territories (UTs)
Chandigarh was selected as the best performing UT.
SARAL Index
1. The ‘State Rooftop Solar Attractiveness Index (SARAL) 2019’ was released.
2. It has been designed collaboratively by
a) Ministry of New and Renewable Energy (MNRE)
b) Shakti Sustainable Energy Foundation (SSEF)
c) Associated Chambers of Commerce and Industry of India (ASSOCHAM)
d) Ernst & Young (EY)
3. It currently captures five key aspects –
a) Robustness of policy framework
b) Implementation environment

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c) Investment climate
d) Consumer experience
e) Business ecosystem
4. It encourages each state to assess the initiatives taken and what it can do to improve its solar rooftop
ecosystem.
5. Karnataka has emerged as the best state for setting up a roof top solar project. The state of Jammu and
Kashmir has been ranked last.
Global Liveability Index 2019
1. Only two New Delhi (118th) and Mumbai (119th) have been ranked in the recently released ‘Global
Liveability Index 2019’.
2. It has been released by the Economist Intelligence Unit.
3. It ranks cities across indicators including stability, healthcare, education, infrastructure, culture and
environment.
4. Vienna in Austria, Melbourne and Sydney in Australia make the top three cities.
Global Multidimensional Poverty Index 2019
1. United Nations Development Programme (UNDP) has recently released the 2019 global Multidimensional
Poverty Index.
2. It was launched by the UN Development Programme (UNDP), the Oxford Poverty and Human
Development Initiative (OPHI).
Findings
1. The report states that there are 1.3 billion people in the 101 countries studied who are ‘Multidimensionally
poor’.
2. It means that poverty is defined not simply by income, but by a number of indicators, including poor
health, poor quality of work and the threat of violence.
3. Ethiopia, India and Peru significantly reduced deprivations in all 10 indicators, namely nutrition, sanitation,
child mortality, drinking water, years of schooling, electricity etc.
4. India lifted 271 million people out of poverty between 2006 and 2016.
5. Jharkhand in India reduced the incidence of multidimensional poverty from 74.9 per cent in 2005-06 to
46.5 per cent in 2015-16.
6. About 34% of the world’s children and 17.5% adults covered under MPI survey are multidimensionally
poor.
About the index
1. It identifies multiple deprivations at the household and individual level in health, education and standard
of living.

2. It complements traditional monetary-based poverty measures by capturing the acute deprivations that
each person faces at the same time with respect to education, health and living standards.
3. It was developed by OPHI with the UN Development Programme (UNDP) in 2010.

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Road Crash Report

1. The Ministry of Road Transport and Highways released the annual report on road accidents in India.
2. It shows a daily average of 1,280 road crashes and 415 deaths in the country which translates into 53
crashes and the loss of 17 lives every hour.
3. According to the Geneva-based World Road Federation’s World Road Statistics 2018, India is the most
unsafe country in the world for road users followed by China and the U.S.
Findings
1. Road traffic injuries constitute the eighth leading cause of deaths in India in 2018.
2. More than 1.5 lakh people lost their lives in road crashes in the country in 2018, an increase of 2.4% over
the previous year.
3. In 2018, 48% of the total people killed in road accidents were between 18 years and 35 years old. Minors
involved in road crash deaths were at 6.6% of the total.
4. The major causes include - Over-speeding (64.4%), Driving on the wrong side (5.8%), Drunken driving
(2.8%), Use of mobile phones (2.4%).
6. Tamil Nadu (13.7%) topped the country in terms of the total number of road crashes, followed by Madhya
Pradesh (11%) and Uttar Pradesh (9.1%).
7. The highest road fatalities were observed in Uttar Pradesh (22,256), followed by Maharashtra (13,261)
and Tamil Nadu (12,216).
Global Labour Income Share and Distribution Report
1. The United Nations (UN) arm International Labour Organisation (ILO) has published ‘Global Labour
Income Share and Distribution Report’.
2. It reports that just 10% of workers receive nearly half of global pay.
3. This assessment gives the first global estimates of the distribution of labour income.
4. It contains data from 189 countries and is drawn from the world’s largest collection of harmonized labour
force survey data

Situation in India
1. Top 10% earners in India made over 69% of the country’s labour income in 2017. It is in contrast to 0.25%
made by the bottom 10% earners.
2. While the pay inequality has remained consistent in India, it has reduced at the global workplace in the
last 13 years.

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ILO
- It was founded in 1919, in the wake of a world war 1, to pursue a vision based on the premise that
universal, lasting peace can be established only if it is based on social justice.
- It became the first specialized agency of the UN in 1946.
- The main aims of the ILO are to promote rights at work, encourage decent employment opportunities,
enhance social protection and strengthen dialogue on work-related issues.
- It brings together governments, employers and workers of 187 member States to set labour standards,
develop policies

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