10-dfa-jan

Daily Financial News Analysis – 10th Jan’20 – Free PDF Download

 

Re-greening clause

  • Supreme Court ordered the Union government to insert a new re-greening clause in its mining leases.
  • To ensure that the mining pits are filled up and grass and vegetation in the mining areas restored before a miner moves on to another area.
  • The government has been asked to comply with the order within three weeks.
  • It is not in dispute that re-grassing technology is available in this country.
  • Appropriate methods may be devised for ensuring compliance of this condition after the mining activity was over at the cost of the mining lease holders, the court said.
  • These mines now claim that they have paid up the fine and levies regarding violations of the forest and environment clearances and other violations regarding excess mining under the MMDR Act and should be allowed to resume operations.

Pre-Budget Meeting

  • Prime Minister Narendra Modi, on Thursday, brainstorm with top economists at NITI Aayog .
  • To discuss the economic slowdown and set the base for government agenda going forward.
  • Top cabinet ministers attended the meeting which lasted nearly two hours.
  • Government wants to adopt all-round approach.
  • PM has emphasised on the need for development of infrastructure in the social sector for the overall economic development besides discussing steps to boost economy in the near-term.
  • The government has announced a series of measures to give a push to attract investments and revive demand.
  • Modi has been interacting with top business tycoons to discuss issues impacting economic growth.

PM’s Focus Back on $5t Economy

  • Prime Minister Narendra Modi called for a focussed effort from all stakeholders to achieve the target of a $5-trillion economy.
  • PM said the ‘$5-trillion’ idea is not sudden and is based on a deep understanding of India’s strengths.
  • “Strong absorbent capacity of Indian economy shows the strength of basic fundamentals of the Indian economy and its capacity to bounce back,”

Start new business in 5 days

  • Start a new business in five days with minimal processes.
  • The government is set to slash the requirements & time taken for starting a new business from 10 process and 18 days to five processes and 5 days.
  • Ten key services, including name reservation, incorporation as well as registration for various taxes such as goods and services tax, will soon be available via two forms instead of multiple individual ones at present.
  • The Ministry of Corporate Affairs will in a month unveil the two new forms — ‘Spice Plus’ and ‘Agile Pro’ — which will replace six forms currently required to avail of these services
  • These two forms will provide access to GSTIN, PAN, TAN, ESIC, EPFO, DIN, bank accounts and professional tax.
  • The new forms will be web-based and much easier to use.
  • World Bank’s latest Ease of Doing Business (EoDB) report has measured the number of days required to set up a business in India at 18, and the number of processes at 10.
  • On the World Bank’s list, India is ranked 136th out of 190 economies in the category of ease of starting a business.
  • The government had also tied up with eight banks to help newly registered businesses apply for bank accounts at the time of incorporation, the official said.

Textile

  • India’s textile and garment trade is witnessing an unusual trend.
  • Imports are going up and exports are dropping.
  • Export slump is ascribed to a host of factors
    1. Global demand slump
    2. Lack of competitive edge
    3. Double whammy of DeMo & GST on unorganised sector
  • Weavers, fabric processors, texturisers and garment units in key textile hubs have borne the brunt of the twin policy steps taken in quick succession, in what impacted domestic supplies significantly.
  • This suggests a Rs 6,600-crore package for garments exporters, announced in 2016, hasn’t helped much in turning the sector around.
  • 2major schemes: Merchandise Export from India Scheme (MEIS) + Rebate of State and Central Taxes & Levies (RoSCTL)
  • MEIS gains have been held up since August
  • Benefits under the RoSCTL have never been extended since its introduction in March.
  • It has exacerbated a liquidity squeeze.
  • Labour laws have to be made more flexible.
  • Affordable and ample credit should be made available to even small players.
  • Infrastructure reforms must be taken up on an urgent basis.
  • India has failed to take advantage of a slowdown in China’s textile and garment exports.

Farmers suicide in 2018

  • National Crime Records Bureau: At least 10,349 people working in the farm sector ended their lives in 2018.
  • The 2018 figure is less in comparison to 2016 when 11,379 farmers committed suicide.
  • A vast majority of farmers who committed suicide were men.
  • Majority of suicides were reported in Maharashtra (17,972) followed by Tamil Nadu (13,896), West Bengal (13,255), Madhya Pradesh (11,775) and Karnataka (11,561), accounting for 13.4, 10.3, 9.9, 8.8 and 8.6 per cent respectively, it said.
  • These 5 states together accounted for 50.9 per cent of the total suicides reported in the country.

WElectoral bonds

  • The finance ministry on Thursday said 13th tranche of electoral bonds sale will take place from January 13 to January 22.
  • Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding.
  • SBI’s 29 authorised branches
    1. January 13, 2020 – January 22, 2020
  • Electoral bonds can be purchased by a person who is a citizen of India or incorporated or established in India.
  • Registered political parties that have secured not less than 1% of the votes polled in the last election of the Lok Sabha or Legislative Assembly will be eligible to receive electoral bonds.
  • An electoral bond will be valid for 15 days from the date of issue.

 

 

 

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