Government efforts on COVID: Atmanirbhar bharat
Atma Nirbhar Bharat doesn’t mean isolation and import substitution, but self reliance and integrating into
global supply chains.Attention not on tariff but to transformation.
It is about decentralization, swami vivekananda internal strength, personnel responsibility and sense of mission
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RBI STEPS
Rate cutting of repo rate to 4%(40 basis points)(including other)(total 115 basis points reduction from March
2020)
Extension of moratorium on loans
Increased exposure limits on banks
Extension in remittance timeline
States diluted labour laws to attract investment and supply chains which may exit china
The bottom line is that India needs to
not only spatially integrate its agri-
Hailed as 1991 moment for
agriculture economic growth markets (one nation, one market) but
also integrate them temporally — spot
and futures markets have to converge.
Features
Free to trade outside the Mandis
Electronic trading
The Farmers’ Produce trade and Market fee abolished outside
commerce (Promotion and Benefits
facilitation) Act 2020 Reduce role of intermediaries
Integrated market: One Nation, one
market
Encouraging APMC reforms
Depoliticize
Features
Farming agreement
Pricing of produce
Conciliation board for settling
The farmers (Empowerment and disputes
Protection) agreement on price Benefits
assurance and farm service Act, Promote contract farming
2020 Lower risk for farmers
Improved inputs
Attracting investments
Reduced cost of marketing for
farmers
Agriculture Infrastructure fund
to be managed by NABARD(
next four years)
Medium term and long
term debt financing facility
Post harvest infrastructure
and community farming
assets through interest Animal husbandry infrastructure
subvention and financial development fund
support
Loan to joint liability groups
like FPOs, cooperatives,
agri preneurs
Managed and monitored
through Management
Information system(MIS)
Amending Essential
commodities Act(sec 3_ to
remove stock limits.ECA
has roots in defense o India
rules when India was National Animal disease control program
ravaged by famine and for foot and mouth disease
wars.
Loop holes of this 50%,
100% rise is steep in
backward direction
Export control laws.
Central Law on APMC using
article 301, reduce monopsony of National medical plants board
Mandis, spacial integration of
prices, reduce price wedges.
Contract farming-farmers- Expanding operation green
processors, retailers, exporters
Pradhan Mantri Matsya Sampada Bee keeping initiative(sweet revolution)
yojana
Promotion of Intra state and inter
Farmers Produce Trade and state trade beyond APMC premises
commerce (Promotion and State government are prohibited
facilitation) Act from levying any market fees
outside APMC
The Farmers(Empowerment and Framework for contract farming
protection) Agreement on price through agreement
assurance and farm service Act Three levels of dispute
2020 settlement:Conciliation board, SDM,
Appellate Authority
Stock limits only in case of war and
Essentail commodity Amendment famine, objective hike in prices
Act 100% for perishable and 50% for
non perishable
New public More private in offing
sector policy Government role only in strategic sector that too
only 1-4 companies with competition for private
No fresh insolvency proceedings for next 1 year
Changes in IBC Minimum threshold to initiate proceeding under IBC
raised from 1 lakh to 1 crore to give cushion to
MSMEs
Provisions for
decriminalizati
on of
companies Act
Revenue sharing method instead of fixed price per
tonne, it will introduce competition and private
participation
Coal and Remove the distinction between captive and non
mining sector captive blocks(end use freedom)
reforms Introduction of commercial mining
Rs 50000 crore investment plan for improving
infrastructure
Exploring coal gasification and coal bed methane
Push for
privatization of
DISCOMMS
Reform on
space sector
Reforms in PPP mode of air port management
aviation Rationalization of tax regime to make India hub of
MRO
Hike in FDI under automatic route from 49% to 74%
, it would allow foreign firms for managerial control
Reforms in Negative list of imports
defense Time bound procurement process
Corporatization of ordinance factory, by listing on
stock exchange
Defense corridors
Reduce compliance costs for industry like bank
guarantee set up, no need for registration for only
Liberalization data ITES., cost cutting on location rent, electricity
in BPOs and internet bills
industry- Allow freelancing of workers(gig economy)
telemarketing, It should have done long back
telbanking, Registration requirements of OSPs have been done
telemedicine away with
It helps in flexibility like work from home, help in
small cities boom if you have good telecomm
sectors, decongest cities
Reforms in
MOR by
rationalizing
taxes, to make
India global for
this
Stimulus Package: 20 lakh crore support, equivalent to 10% of GDP
Expanding ration facility,
including pulses
Portability
Insurance coverage to
health care workers
Pradham Mantri Gharib Kalyan Front loading of PM KISAN
Yojana 500 to women in jan dhan
Increase in MGNREGA
wage
EPF contribution
Collateral free lending
Increase in MGNREGA funding and
a bit of wage
Liquidity injection to NBFCs,
DISCOMMS
But conditions on reforms
Increase the borrowing limit of like ease of doing
states from 3% to 5% of GDP it business, ration
would allow tapping 4.2 lakh portability, power
crores further distribution, Urban local
bodies
Interest free loans to
MUDRA interest subvention street vendors(PM
SVanidhi)
Lease travel Concession tax
free benefit, it will also
boost GST collection
Special festival advance
scheme
Measures to boost capital
expenditure:Loan of 10000
crores interest free for 50
years
UDYAM portal for
registration of MSMEs and
their formalization
This will improve access to
formal credit, as at present
only 1/3 rd of credit is from
formal sources, according
to IFC
Integration of trade
receivable electronic
discounting system and
Government e market(GeM)
place
For healthy cash flow
related to working capital
https://www.financialexpre
Factoring ss.com/economy/rajya-
regulation(amendment) sabha-clears-bill-
bill, 2021 factoring-law-to-draw-
9000-nbfcs-boost-msme-
cash-flow-says-fm-
nirmala-
sitharaman/2300445/
Labour law reforms Recommendation of second labour commission
Complexity and plethora of laws
Poor enforcement of laws
Constrained growth of firms
Need Contractualization of word force
Inadequate coverage to unorganized(93%), Gig
economy
Floor wage to be fixed by centre
Fixing minimum wage
Code on wages Over time wage twice
Wage deduction of employee shouldn’t exceed 50%
Determination of bonus
Prohibtion of gender discrimination
Definition of worker, registration
Standing order
Prior permission of the government for closure, lay off
and retrenchment
Negotiating union and council
Tribunal for settlement of disputes
Fix term employment(improve ease of doing business)
Re-Skilling fund
Code on Industrial relations Grievance redressal committee and government
(Trade union Act, Industrial appointed conciliation officers
employment(standing Raised threshold from 100 to 300(State have power to
order)Act, Industrial disputes increase it further)
Act State government power to exempt law compliance
ISSUES
Impact work ability to strike as 14 days prior permission
needed
Governments power to modify and reject Tribunal order
goes against separation of powers
Fixed term employment may lead to job insecurity
Impact formation of trade union
Vague terms
Social security fund and National social security
board for unorganized workers, gig workers, platform
workers and nation social security board
Code on Social security State unorganized workers board and Maternity
(replaces 9 laws) benefits
Issues
No universal social security
Provision of gig workers are unclear
AADHAR Linking may violate privacy
Definition and threshold for coverage
Exemptions
Interstate migrant workers-Journey allowance
Annual health examinations, adequate safeguards for
women
Code on occupational safety, National occupation safety board and health
Health, working conditions advisory board
Issues
Civil court barred
Not applicable for Agriculture
Limited research on occupational safety
Lack of effective coverage
