Daily PIB Analysis For UPSC/IAS | Free PDF Download- 5th and 6th November 2018

Table of Contents

MSMEs

- The announcement of support to micro, small and medium enterprises (MSME) by Prime Minister Narendra Modi last week had both economic and political rationales behind it.
- MSMEs can now get in-principle approval for loans of up to ₹1 crore in 59 minutes.
- GST registered interest subvention on fresh or incremental loans.
- Access and cost of credit The share of MSMEs in the country’s gross value added is estimated to be about 32%. It also contributes about 40% to total exports 45% to manufacturing output
- Credit flow was affected in the aftermath of demonetization, though it subsequently recovered from February 2017. Nevertheless, the share of credit to MSMEs has declined as a proportion of overall bank credit in recent years.
- Although government intervention will help the sector, the actual impact for a large number of small firms will remain limited.
- The problem is that, as researchers highlighted in the above-mentioned note, more than 90% of MSMEs operate in the informal sector.
- These firms largely depend on informal sources of credit at higher interest rates.
- It is difficult for these firms to get loans from banks because they do not maintain proper documents and records.

At a broader level, since most firms are very small, besides non-availability of formal finance, they are also not in a position to adopt technology to improve productivity.
Further, most firms in the informal sector are unlikely to attract skilled labour.
The sixth economic census, for example, showed that enterprises on an average employed only 2.24 people.
This illustrates that the problem is much bigger than the availability of credit.
India has a large number of tiny firms that work in the informal sector and do not scale up. This has not only affected growth and output, particularly in the manufacturing sector, but also employment generation.
It is likely that with increasing digitization and the implementation of the GST, more firms will join the formal sector.
It is important to note that the while incentivizing credit flow will help improve activity in the sector, government intervention and directed lending can affect proper credit appraisal.
In this context, former RBI governor Raghuram Rajan, in his note to a Parliamentary committee, recently cautioned: “Both MUDRA loans as well as the Kisan Credit Card, while popular, have to be examined more closely for potential credit risk.
The Credit Guarantee Scheme for MSME (CGTMSE) run by SIDBI is a growing contingent liability and needs to be examined with urgency.
Public sector banks already have significant NPAs in the MSME sector and a push by the government can increase the risk.
Meanwhile, the government should work to improve the overall regulatory architecture that would incentivize smaller firms to scale up.

Vice President’s Secretariat

Addressing the Indian Community in Malawi, Shri M. Venkaiah Naidu asked them to be India’s cultural ambassadors representing the India’s values and way of life.
Saying that share & care is core of Indian philosophy, the Vice President asked the Indian community to keep building bridges of understanding & empathy as they have been doing, for so many decades.
Share your prosperity with your Malawian brothers & sisters and make them partners in progress, he added.

Prime Minister’s Office

Prime Minister Shri Narendra Modi received today the crew of Strategic Strike Nuclear Submarine (SSBN) INS Arihant.
The submarine recently returned from its first deterrence patrol, completing the establishment of the country’s survivable nuclear triad.
Noting that the indigenous development of the SSBN and its operationalisation attest to the country’s technological prowess and the synergy and coordination among all concerned, the Prime Minister thanked them for their dedication and commitment in realising this pioneering accomplishment enhancing immensely the country’s security.
The Prime Minister stated that the people of India aspire for a ‘Shaktimaan Bharat’ (Strong India) and building a New India.

AYUSH

Minister of State for AYUSH Shri Shripad Yesso Naik has announced that Ayurveda Departments will be opened in the new 19 AIIMS.
Ministry has taken many steps to fulfil the theme ‘Ayurveda for public health’ and decided for further expand the coverage of the National Programme of ‘Prevention of Non Communicable Disease’ from exiting six states.
The Minister further said, the Ministry will organise 50 workshops in collaboration with MSME to enhance entrepreneurship in Ayurveda and AYUSH sector.
Dr. Harshvardhan emphasised upon the scientific integration of AYUSH system of medicines.
The third Ayurveda Day is being celebrated throughout the country on the occasion of Dhanwantari Jayanti.

Ministry of Commerce & Industry

On the invitation of China’s Ministry of Commerce, India has set up a Country Pavilion in the 1 st China International Import Expo (CIIE) which was inaugurated today at the National Exhibition & Convention Centre, Shanghai, China.
India’s country pavilion has focussed on key sectors such as food and agro products, pharmaceuticals, IT & ITES, tourism and services sector.
China is India’s largest trading partner with a total trade expecting to reach $ 100 billion mark in near future.
Both countries have expressed a resolve to address India’s concern regarding large trade deficit with China.

Ministry of Finance

As part of Finance Commission of India’s interactive process with major central ministries, discussions were held today with Minister of External Affairs Smt. Sushma Swaraj and other senior officials of the ministry.
The Commission led by Chairman Shri N. K. Singh and other members Sh. Shaktikanta Das, Dr. Anoop Singh, Dr. Ashok Lahiri and Dr. Ramesh Chand was appraised of the broad architecture of the working of the foreign affairs in their detailed presentation.
The Commission was conscious that contours of foreign policy of an increasingly interdependent India entails multiple challenges and opportunities.
The emergence of other major powers in this region and the need for timely completion of projects initiated in number of friendly countries, needed adequacy of resources.

Ministry of Food Processing Industries

Ministry of Food Processing Industries (MoFPI) under Union Minister Smt Harsimrat Kaur Badal has approved the operationalisation strategy for Operation Greens.
Operation Greens was announced in the Budget speech of 2018-19 with an outlay of Rs 500 crores to stabilize the supply of Tomato, Onion and Potato (TOP) crops and to ensure availability of TOP crops throughout the country round the year without price volatility.
Price volatility of TOP crops wreaks havoc in the households of this country. This is a revolutionary scheme which has evolved after sustained dialogue with all stakeholders and we have decided the strategy to stabilize prices of TOP crops and to make sure that TOP crops reach all households in the country around the year.

Ministry of Road Transport & Highways

Shri Nitin Gadkari has said that the country needs futuristic technology for developing its transport sector.
Reiterating his commitment for promoting transport innovations that are pollution free and cost effective, he said that ropeways, cable cars, funicular railways can be very useful means of transport for hilly and difficult terrains and as last mile connectivity options in congested cities.
WAPCOS and Doppelmayr for providing end-to-end solutions for passenger ropeway projects.
WAPCOS is a leading engineering consultancy organisation of the Government of India, which has grown into an Indian multinational with projects in over 45 countries across the world. Doppelmayr, Austria are the world’s largest ropeway manufacturers with cutting-edge ropeway technologies. It has set up more than 15,000 ropeway installations across the world.

Vice President’s Secretariat

Extending India’s continuous engagement with Africa, the Vice President of India, Shri M. Venkaiah Naidu has successfully completed the three nations visit to Botswana, Zimbabwe and Malawi.
Prime Minister, Shri Narendra Modi had recently set out 10 guiding principles to enhance our engagement with Africa.
The Vice President was received with great warmth and affection in all the three nations.
The President of Botswana broke protocol and flew back from his visit to Mozambique to meet the Vice President when he was leaving for Zimbabwe at the airport.
The President of Zimbabwe, Mr. Emmerson Mnangagwa spent more than an hour with Shri Naidu to discuss various issues of mutual interest and in Malawi, the President hosted luncheon in the honour of the Vice President where the first lady was also present.
The Vice President’s visit was very significant as this was the first high level visit after a significant gap to these three countries. In fact, in Zimbabwe, it was after 21 years.
He said the leadership of the all three nations thanked India for a sustained development assistance extended through Lines of Credit and grants for various projects.

Ministry of Commerce & Industry

The 5 th edition of the 10-day “Women of India National Organic Festival 2018” organised by the Ministry of Women & Child Development culminated.
Over the 10 days, women farmers and entrepreneurs from across the country, participated with vast variety of organic products ranging from food and fabrics to wellness and personal care participated in this festival, which is an annual affair.
This year, the total sales by the women farmers and entrepreneurs who came from 26 States, were a record of over Rs. 2.75 crore, up from Rs. 1.84 crore in last year’s edition that was organised at Dilli Haat, INA, New Delhi.

Ministry of Commerce & Industry

Commerce Secretary, Dr. Anup Wadhawan, had a bilateral meeting with Mr. Wang Shouwen, Vice Minister of China’s Commerce Minister, today in Shanghai.
The Commerce Secretary while expressing concern regarding the large trade deficit, acknowledged Chinese Government’s efforts in clearing some of the market access issues such as for rice and rapeseed meal during the past few months and expressed satisfaction over progress on soya bean meal and pomegranate and related issues.
He also informed Mr. Wang about the encouraging response to the business promotion events organized by the Indian Embassy and Consulates covering products like sugar, rice, tea and oil meals.
The Commerce Secretary informed that areas like agriculture products, pharmaceuticals, information technology services and tourism in which India has proven strengths and significant global presence but minuscule presence in China, need to be encouraged in bilateral trade.

Ministry of Communications

India has been elected as a Member of the International Telecommunications Union (ITU) Council for another 4-year term (2019-2022).
The elections to the Council were held during the ongoing ITU Plenipotentiary Conference 2018 at Dubai, UAE.
By securing 165 votes, India ranked third among the 13 countries elected to the Council from the Asia-Australasia region, and eighth among the 48 countries elected to the Council globally.
The ITU has 193 member states who elect representatives to the Council.