Table of Contents
GST Council Meeting
- September 20 meeting, Goa
- Could lower levies for sectors such asautomobiles, biscuits and other fast moving consumer goods (FMCG)
- It could also discuss raising the lowestslab of 5% to as much as 8%.
- Fitment committee discussed thepossible revenue impact of a rate cut on automobiles.
- Parle, Britannia and other biscuitmakers have pitched for a reduction in GST from 18% to 12% to bring them on par with unbranded varieties.
- States may have to share some of therevenue loss that would accrue due to any cut in GST on automobiles.
Factory Output
- Industrial production, as measured bythe index of industrial production (IIP), rose 4.3% in July.
- Industrial growth picked up pace in July
- June: revised down to 1.2% from 2%estimated earlier
- This will provide some relief to agovernment battling to revive the slowing economy and deteriorating consumer sentiment.
- It was 6.5% in July last year.
- Cumulative April-July growth was3.3%, well below 5.4% for the same period in the last fiscal.
Retail Inflation
- India’s retail inflation climbed up to a10-month high of 3.21% in August.
- Central bank’s medium-term target:4%
- Inflation mainly originated from meatand fish, vegetables, pulses and products, health, education, and personal care and effects.
- Inflation based on the Consumer PriceIndex (CPI) was 3.15% in July and 3.69% in August 2018.
- The previous high was 3.38% inOctober 2018.
- Central Statistics Office: Inflation inthe food basket was 2.99%, up from 2.36% in July.
- The RBI governor led Monetary PolicyCommittee will take a call on interest rates on October 4.
Amaravati
- WB, ADB pulled themselves out ofproject.
- Uncertainty created by Jagan Reddy’sambivalence on Amaravati.
- It stands to damage the Indianeconomy far beyond Andhra Pradesh.
- Political rivalry should not be at theexpense of hurting the reputation of the state and the nation as a reliable destination for investment.
- If Amaravati fails to be built, a majorcasualty would be the conflict-free model of releasing farmland for urbanisation deployed for the town’s construction.
- Farmers handed over their land inreturn for an annuity and a proportion of the land so surrendered to the town project being returned as an urban parcel, worth a great deal more than the original farmland.
- While Amaravati is not the first placeto use this method of land pooling, it is by far the biggest such project, the town covering 270 sq km.
- An adequate supply of urban space isa pre-requisite for the growth of industry and modern services, which alone can propel India’s growth to double-digit levels.
- If half of India is to become urbanover the next 15-20 years, that would mean an additional urban population of 20 crore.
- They cannot crowd into existing towns.
- To kill Amaravati to settle politicalscores would be an unpardonable act of irresponsibility.
- The new chief minister must show uphis rival by excelling him in envisioning prosperity and realising it, not by scuttling the good work that is already underway.
One Nation One Standard
- Consumer Affairs Ministry has floatedthis concept.
- Under which about 50 differentagencies (including food regulator FSSAI) that currently set specifications/standards for different products will fall under the purview of the Bureau of Indian Standards (BIS).
- Out of over 20,000 standards forvarious products and services, BIS has released mandatory standards only for 154 products, including 44 electronic items, while the remaining standards are voluntary.
- There are about 50-odd other agenciesthat have framed over 400 standards.
- Currently less than 10% of allimported products follow BIS standards
- Even as the BIS plans to expand itsscope, its enforcement is limited to only those companies which are registered with it.
- The agency does not regulate thoseproducts which are not registered with it, even in case of mandatory standards.
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