PLANNING - Classmate · MEANING the making of major economic decisions— what and how much is to be produced and to whom it is to be allocated by the conscious decision of a determinate

PLANNING

FIVE YEAR PLANS

FRAMEWORK

• MEANING • TYPES • EVOLUTION • PLANNING COMMISSION • NITI Aayog • NATIONAL DEVELOPMENT COUNCIL • GOALS • TABLES • ACHIEVEMENTS • FAILURES

MEANING

“the making of major economic decisions— what and how much is to be produced and to whom it is to be allocated by the conscious decision of a determinate authority, on the basis of a comprehensive survey of the economic system as a whole.”

-H. D. Dickinson

TYPES OF PLANNING

Territorial Coverage: • Regional Planning • National Planning Economic System: • Imperative/Directive/Target • Indicative /Monnet/Basic Sector Political View: • Central • State • Local Participatory View: • Centralised • Decentralised

Temporal View: • Long term/Perspective • Mid Term • Short Term/Annual Value Point: • Economic • Developmental Social & Institutional Dimensions • Normative Planning • Systems Planning Sector Based • Sectoral • Spatial

EVOLUTION

• 1928: Soviet Russia started • 1929-31: GREAT DEPRESSION in U.S.A • 1934- M.G. VISVESHWARAYA – “The planned Economy for India” • 1934 – FICCI Proposal – President N.R.Sarkar • 1936: P.C LOKNATH – “The Principles of Planning” • 1936: K.N SEN- “Economic Reconstruction of India” • 1938- I.N.C accepted Planning under Chairmanship of S.C BOSE • 1938: “National Planning Committee” under chairman ship of J.L Nehru • 1939-45: II-World War • 1944: ‘Gandhi Plan’ by Sriman Narayan Agarwal • 1945: Bombay Plan(A plan for E. Development in India) by 8 Industrialists. • 1945: People’s Plan by M.N Roy • 1946: Indian Planning Advisory Board chairman- K.C NIYOGI • 1950: Sarvodaya Plan by Jaya Prakash Narayan

PLANNING COMMISSION

• Objective: To Formulate Five Year Plans

• Date : 15th March, 1950 – 31st Dec, 2014

• Chairman: J.L Nehru

• Deputy Chairman: G.L Nanda

• Monthly Magazine: YOJANA

NITI Aayog, 2015 (National Institution for Transforming India)

NATIONAL DEVELOPMENT COUNCIL

• Objective: To discuss & approve Five Year Plans

• Date : 6th August, 1952

• Chairman: J.L Nehru

• Members: CMs OF THE STATES + PLANNING COMMISSION MEMBERS

GOALS

1. GROWTH

2. MODERNISATION

3. SELF-RELIANCE

4. EQUITY

5. POVERTY ALLEVATION

6. EMPLOYMENT GENERATION

7. REDUCING ECONOMIC INEQUALITIES

REAL GROWTH IN INDIA – FIRST PLAN TO ELEVENTH PLAN

Plan Period

Real Income

Growth Sectoral Growth Rate

Plan Actual

Target Growth Agriculture Industr

y Services

First Plan 1951-56 2.1 3.5 2.9 5.9 3.7

Second Plan 1956-61 4.5 4.2 3.2 6.4 4.6

Third Plan 1961-66 5.6 2.8 -0.5 6.8 5

Fourth Plan 1969-74 5.7 3.2 2.6 3.7 4

Fifth Plan 1974-79 4.4 4.7 3.4 6.3 5.5

Sixth Plan 1980-85 5.2 5.5 5.5 6.2 5.4

Seventh

Plan 1985-90 5 5.6 3.4 7.5 7.4

Eighth Plan 1992-97 5.6 6.5 3.9 8 7.9

Ninth Plan 1997-02 6.5 5.5 2 4.6 8.1

Tenth Plan 2002-07 7.9 7.7 2.3 9.2 9.3

Eleventh 2007-12 9 7.8 4 NA NA

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SECTORAL GROWTH RATE

Sectoral Growth Rate

-5

0

5

10

Five Year Plans

Gro

wth

Rat

e

Agriculture Industry Services

Agriculture 2.9 3.2 -1 2.6 3.4 5.5 3.4 3.9 2 2.3

Industry 5.9 6.4 6.8 3.7 6.3 6.2 7.5 8 4.6 9.2

Services 3.7 4.6 5 4 5.5 5.4 7.4 7.9 8.1 9.3

1 2 3 4 5 6 7 8 9 10

PHASES

Phase 1:1950-51 to 1965-66- Nehruvian Era

Phase 2:1965-66 to 1979-80- Indira Gandhi era

Phase 3 1979-80 to 1991-92- Structural Changes

Phase 4:1991-92 to Till now- L.P.G

First Plan(1951 - 56)

• Land Reforms, 1951 • Industries Development and Regulation Act of India (1951) • Sindri fertilizer plant, 1951 • Central Statistical Organisation, 1951 • State Financial Corporations Act, 1952 • National Forest Policy, 1952 • National Family Planning, 1952 • Community Development Program,1952 • First General Elections, 1952 • Hindustan Shipyard Limited, 1952 • National Extension Service, 1953 • Imperial Bank of India became State Bank of India, 1953 (Gorwala committee) • Small Industries Development Organization (SIDO), 1954 • Industrial Credit and Investment Corporation of India Limited (ICICI), 1955 • State Bank of India was nationalised, 1955. • Bhakra-Nangal Dam, Nagarjuna Sagar Dam, Essential Commodities Act, 1955

Second Plan(1956 - 61)

• University Grants Commission (UGC) Act 1956 • Khadi Village Industries Commission, 1956 • Companies Act, 1956 • Oil and Natural Gas Corporation, 1956 • Industrial Policy Resolution 1956 (IPR 1956) • National Thermal Power Corporation Limited (NTPC), 1958 • National Agricultural Cooperative Marketing Federation of

India, 1958 • Institutes of Technology Act, 1961 • Intensive Agriculture Development program (IADP), 1961 • Steel Plants: Bhilai(USSR),Durgapur (Britain),

Rourkela(Germany)

Third Plan (1961 - 65)

• Unit Trust of India, 1964 • Industrial Development Bank of India, 1964 • Bokkaro Steel Plant, 1965 • Food Corporation of India, 1965 • Intensive Agricultural Area Programme, 1964 • Complete failure in reaching the targets due to

unforeseen events – – Chinese aggression (1962) – Indo-Pak war (1965) – Severe drought 1964-65 – Devaluation of Rupee, 1966 (1991)

Three Annual Plans (1966-69)

• Plan holiday for 3years.

• Green Revolution, 1966-67.

• Minimum Support Prices (MSP), 1966-67

• Appointed Hazari Committee for Nationalisation of banks.

Fourth Plan(1969 - 74)

• Growth with Justice and Garibi hatao Slogan • Norman Committee- LEAD Bank, 1969 • MRTP,1969-To prevent the emergence of Monopoly. • 14 Bank Nationalised,1969 • Borlaug Award by Coromandel International, 1972 • FERA,1973-To use Forex reserves properly • Drought Prone Areas Programme(DPAP), 1973-74 • Marginal Farmer and Agriculture Labor Agency

(MFALA), 1973-74 • 1971-74:Inflation(>10%),1971 War-Oil shock. • Operation Smiling Buddha, May 18, 1974.

Fifth Plan (1974-78)

• The plan was terminated in 1978 • Command Area Development Programme (CADP) 1974 • Twenty Point Programme, 1975 • Regional Rural Banks (RRBs), 1975 • National emergency,1975. • 20 Point Programme, 1975 • Internal Emergency, 1975-77 • Forced Family Planning, 1975 • Antyodaya Programme, 1975 (Rajasthan) • Industrial Policy Statement, 1977 • Food For Work, 1977

Rolling Plan(1978 - 80)

• Architect of Rolling Plan: Gunnar Myrdal (Asian Drama), Adopted from Japan.

• D.T Lakdawala recommended Rolling Plan

• District Industries Centre (DIC), 1978

• Training Rural Youth for Self Employment TRYSEM, 1980

Sixth Plan(1980 - 85)

• A.k.a Energy Plan

• Integrated Rural Development Programme (IRDP), 1980

• 6 Banks Nationalised, 1980

• Export and Import Bank (EXIM), 1982

• NABARD, 1982

• Rashtriya Ispath Nigam Limited (RINL), 1982 (Nationalised)

Schemes

• National Rural Employment Programme (NREP)—1980 • Restructured Twenty-Point Programme–1982 • Biogas Programme—1982 • Development of women and children in Rural Areas (DWCRA)—1983 • Rural Landless Employment Guarantee Programme (RLEGP)—1983 • Self-Employment to Educated Unemployed Youth Programme (SEEUP)—1983 • Dairy Development Programme (DDP)—1983 • Village and Small Industries Development Programme (VSIDP)—1983 • Tribal Development Agency (TDA)—1983 • Village and Small Industries Development Programme (VSIDP)—1983. • Tribal Development Agency (TDA)—1983. • National Seeds Programme (NSP)—1983. • Intensive Pulses Development Programme (IPDP)—1983. • Intensive Cotton Development Programme (ICDP)—1983. • Khadi and Village Industries Programme (KVIP)—1983 • Programme for Depressed Areas (PDA)—1983. • Special Programme for Women and Children (SPWC)—1983

Seventh Plan(1985 - 90)

• Indira Awas Yojana (1985-86)

• National Water Shed (1986-87)

• Single Window System, 1987

• Jawahar Rojgar Yojana (JRY), 1989

• Tribal Cooperative Marketing Development Federation of India Limited (TRIFED), 1987

• Some of the already existing programmes such as the IRDP, CADP, DPAP and the DDP were re-oriented.

Two Annual Plans

• 24,July,1991 –Liberlisation –”New Industrial Policy” • The Eighth Plan (whose term would have been 1990–95) could not

take off due to the ‘fast-changing political situation at the Centre’. • The pathbreaking and restructuring-oriented suggestions of the

Eighth Plan, the sweeping economic reforms ensuing around the world as well as the fiscal imbalances of the late 1980s were the other important reasons for the delay in the launch of the Eighth Plan.

• The new Government, which assumed power at the centre in June 1991, decided to commence the Eighth Plan for the period 1992–97 and that the fiscals 1990–91 and 1991–92 should be treated as two separate Annual Plans. The two consecutive Annual Plans (1990–92) were formulated within the framework of the approach to the Eighth Plan (1990–95) with the basic thrust on maximisation of employment and social transformation.

www.classmateacademy.com 26

Regulating Body Area year

SEBI(Formerly CCI) Capital Market 1992

IRDA Insurance sector 1999

CCI (MRTP) Competition 2002

TRAI Telecom 1997

PFRDA Pension 2003

FSSAI Food Safety and Standards Authority of India

2011

IWAI Inland Waterways Authority of India

1986

CERC Central electricity Regulatory Commission

1998

Eighth Plan(1992 - 97)

• The eighth plan was postponed by two years because of political uncertainty at the Centre

• Worsening Balance of Payment position and inflation during 1990-91 were the key issues during the launch of the plan.

• The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%

• Some of the main economic outcomes during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.

Ninth Plan(1997- 2002)

• Target Growth: 6.5% Actual Growth: 5.35% • It was developed in the context of four important

dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.

• Basic Minimum Services (BMS) (i) Safe drinking water; (ii) Primary health service; (iii) Universalisation of primary education; (iv) Public housing assistance to the shelter-less poor families; (v) Nutritional support to children; (vi) Connectivity of all villages and habitations; and (vii)Streamlining of the public distribution system.

Tenth Plan(2002 - 2007)

• Goals: To achieve 8% GDP growth rate • Reduction of poverty ratio by 5 percentage points by 2007. • Providing gainful high quality employment to the addition to the labour force over

the tenth plan period. • Universal access to primary education by 2007. • Reduction in gender gaps in literacy and wage rates by atleast 50% by 2007. • Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%. • Increase in literacy rate to 72% within the plan period and to 80% by 2012. • Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to

28 by 2012. • Increase in forest and tree cover to 25% by 2007 and 33% by 2012. • All villages to have sustained access to potable drinking water by 2012. • Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012.

Eleventh Plan(2007 - 2012)

• Goals: Accelerate GDP growth from 8% to 10%. Increase agricultural GDP growth rate to 4% per year. • Create 70 million new work opportunities and reduce educated unemployment to below 5%. • Raise real wage rate of unskilled workers by 20 percent. • Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12. Increase

literacy rate for persons of age 7 years or above to 85%. • Lower gender gap in literacy to 10 percentage point. Increase the percentage of each cohort going to higher

education from the present 10% to 15%. • Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births • Reduce Total Fertility Rate to 2.1 • Provide clean drinking water for all by 2009. Reduce malnutrition among children between 0-3 years to half its

present level. Reduce anaemia among women and girls by 50%. • Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17 • Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and

girl children • Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas)

by 2009, and ensure coverage of all significant habitation by 2015 • Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012 • Increase forest and tree cover by 5 percentage points. • Attain WHO standards of air quality in all major cities by 2011-12. • Treat all urban waste water by 2011-12 to clean river waters. • Increase energy efficiency by 20 percentage points by 2016-17.

12th Plan (2012-17)

Twelfth Five Year Plan focuses on Growth – Growth which is Faster, Inclusive, Sustainable 25 Core Monitorable Targets of the 12th Five Year Plan (2012-17) Economic Growth Real GDP growth at 8%. Agriculture growth at 4%. Manufacturing growth at 10%. Every state must attain higher growth rate than the rate achieved during 11th plan. Poverty and Employment Poverty rate to be reduced by 10% than the rate at the end of 11th plan. 5 Crore new work opportunities and skill certifications in non-farm sector.

Education Mean years of schooling to increase to 7 years. 20 lakh seats for each age bracket in higher education. End gender gap and social gap in school enrollment. Health Reduce : IMR to 25; MMR to 1. Increase Child Sex Ratio to 950. Reduce Total Fertility Rate to 2.1 Reduce under nutrition of children in age group 0-3 to half of NFHS-3 levels. Infrastructure Investment in Infrastructure at 9% of GDP Gross Irrigated Area 103 million hectare (from 90 million hectare) Electricity to all villages; Reduce AT&C losses by 20%.

Connect Villages with All Weather Roads National and State high ways to a minimum of 2 lane standard. Complete Eastern and Western Dedicated Freight Corridors. Rural Tele-Density to 70%. 40 Litres Per Capita Per Day Drinking Water to 50% of rural population; Nirmal Gram Status to 50% of all Gram Panchayats. Environment and Sustainability Increase green cover by 1 million hectare every year. 30,000 MW renewable energy during Five Year Period. Emission intensity of GDP to be reduced to 20-25% of 2005 levels by 2020. Service Delivery Banking Services to 90% of Indian Households. Subsidies and Welfare related payment to be routed through Aadhar based Direct Cash Transfer Scheme.


Schemes of New Government : • Pradhan Mantri Jan Dhan Yojana : 28 Aug,2014 : • Rupay Debit card • Accident insurance cover of Rs 1L • Life insurance cover of Rs30,000to those who opened account before 16,Jan • 28 Jan : 12.31cr (7.36 in rural areas ,4.95 in urban areas ) • 67.5 % with zero balance DDUGJY : Deendayal Upadhyaya Gram Jyoti Yojana (Garv : Grameen Vidyutikaran app) • Separation of agriculture and non-agriculture feeders • Augmentation of transmission and distribution • Metering in rural areas

Swach Bharat Mission : 2oct,2014 by 2oct 2019 Awareness,solidwaste,sanitation, Heritage City Development and Augmentation Yojana(HRIDAY) Heritage linked urban development(12 cities Ajmer,Varanasi,Warangal,badami,Puri,Gaya) Smart City Scheme : 100 cities


J : JanDhan Yojana, 125.5 m JanDhan bank accounts A : Aadhaar,757m Aadhaar numbers M : Mobile numbers, 904m mobile phones . PAHAL : (Pratyaksh Hanstantrit Labh) 01/01/2015 launched throughout the country


ASER report : Grade 5 -47% could read grade 2 Padhe Bharath Bade Bharath : focuses on early reading, writing and comprehension and early grade mathematics. Deendayal Upadhyaya grameen Koushalya Yojana(Ddu-GKY) : Training and career Nai Manzil : Education and skill development of dropouts without a formal school-leaving certificate to obtain one and find better employment. Pandit Madan Mohan Malaviya Mission for Teachers Training: Dec 25


Atal Pension Yojana : APY is applicable to all citizen of India aged between 18-40 years, would receive the fixed monthly pension of Rs. 1000 to Rs 5000 at the age of 60 years, depending on their contributions. Government would co-contribute 50 per cent of a subscriber’s contribution or Rs 1,000 per annum, whichever is lower to each eligible subscriber account for a period of of 5 years from 2015-16 to 2019-20. Pradhan Mantri Jeevan Jyoti Bima Yojana: Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium. Premium: Rs 330 per annum. It will be auto-debited in one installment. Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscribers account. Risk Coverage: Rs. 2 Lakh in case of death for any reason. Pradhan Mantri Suraksha Bima Yojana: Eligibility: Available to people in age group 18 to 70 years with bank account. Premium: Rs 12 per annum. Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available. Risk Coverage: For accidental death and full disability – Rs 2 Lakh and for partial disability – Rs 1 Lakh.


Nai Roshini : Leadership training programme for minority women. MANAS (Maulana Azad National Academy for Skills) Upgrading entrepreneurial skill of minority youth for sled employment Mission Indradhanush (25 dec): To cover all the children who are either unvaccinated or are partially vaccinated against 7 preventable diseases Diphtheria,Whooping Cough,Tetanus,Polio,Tuberclosis,Measles Immunization –From 65% to 90%


Beti Bachao BetiPadhao Programme (BBBP) : 22 Jan,2015 at panipat ,Haryana First in 100 dist Haryana-835 Sukanya Samriddhi account" special account for girl child, Rs1000 at time of birth ,then any amount in multiples of hundred and at 18 yrs,Rs 1,50,000 Sansad Adarsh Gram Yojana(SAGY): 11Oct,2014 One Model village -2016 Two Model Villages -2019 Vanbandhu Kalyan Yojana : One Block In Tribal areas (schedule 5 states),10 cr for all round development .


Sugamya Bharat Abhiyan(Accessible India Campaign ) : Is the nationwide campaign for achieving universal accessibility for all citizens including Persons with Disabilities, to be able to gain access and live independently. DEC-3, International day of Persons with disability. UDAY : Ujwal Discom Assurance Yojna • Improving operational efficiencies of discoms, • Reduction of cost of power, • Reduction in interest cost of discoms and • Enforcing financial discipline on discoms through alignment

with state finances.

DELP : Domestic Efficient Lighting Programme EESL : Efficient Energy Services Limited Pub ltd


Start Up India

• Single Window Clearance even with the help of a mobile application • 10,000 crore funds of fund • 80% reduction in patent registration fee • Modified and more friendly Bankruptcy Code to ensure 90-day exit

window • Freedom from mystifying inspections for 3 years • Freedom from Capital Gain Tax for 3 years • Freedom from tax in profits for 3 years • Eliminating red tape • Self-certification compliance • Innovation hub under Atal Innovation Mission • Starting with 5 lakh schools to target 10 lakh children for innovation

programme


Stand Up India Scheme to promote entrepreneurship among Scheduled Caste/Scheduled Tribes (SC/ST) and Women entrepreneurs.

• The Scheme seeks to facilitate at least two such projects on an average one for each category of entrepreneur per bank branch.

• The Stand-up India is component of Start-up India, Stand up India slogan anchored by Department of Financial Services (DFS) to encourage greenfield enterprises by Women and SC/ST entrepreneurs.

• It will refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount 10,000 crore rupees

• It would provide women and SC/ST entrepreneurs bank loans repayable up to 7 years. It would be between 10 lakh to 1 crore rupees for greenfield enterprises in the non-farm sector.


Pradhan Mantri Kaushal Vikas Yojana • PMKVY is a flagship scheme that would ensure that the

youth undergo skill training under NSDC and this scheme would affect the skill sets of around 24 lakh individuals across the length and breadth of the country.

• The National Skill Qualification Framework (NSQF) would be the benchmark of training programs carried out under the PM Kaushal Vikas Yojana.

• The scheme would also award monetary rewards to the successful trainees on completion and the certifications and assessments would be carried out by third party assessment bodies.

• The average monetary reward given to each trainee would be around Rs 8,000

ACHIEVEMENTS

• INCREASE IN NATIONAL AND PER CAPITA INCOME

• PROGRESS IN AGRICULTURE

• PROGRESS IN INDUSTRY

• DEVELOPMENT OF ECONOMIC INFRASTRUCTURE

• DIVERSIFICATION OF EXPORTS AND IMPORT SUBSTITUTION

• DEVELOPMENT OF SCIENCE AND TECHNOLOGY

• DEVELOPMENT OF EDUCATIONAL SYSTEM

FAILURES

• FAILURE TO ELIMINATE POVERTY

• FAILURE TO ELIMINATE UNEMPLOYMENT

• FAILURE TO REDUCE INEQUALITIES OF INCOME AND WEALTH

• FAILURE TO CHECK THE GROWTH OF BLACK MONEY

• FAILURE TO REDUCE CONCENTRATION OF ECONOMIC POWER

• FAILURE TO IMPLEMENT LAND REFORMS

AGRICULTURE The Back bone to Indian Economy

FRAMEWORK

• INTRODUCTION

• TYPES OF FARMING

• CROPPING PATTERN

• MAJOR CROPS

• REFORMS

• SCHEMES

• AGRICULTURE CREDIT

• S.W.O.T

MEANING

• The science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals.

INTRODUCTION

2/3rd of Indian population is engaged in agricultural activities.

50% of work force and 14 % GDP.

Provides food to more than 1 billion people

Produces 51 major crops

Contributes to 1/6th of the Export Earnings

Food grains are the most important agricultural products made in India

LAND DISTRIBUTION

– 60% - AGRICULTURAL LAND

– 20% - FOREST COVER

– 11% - NON-AGRICULTURAL PURPOSES

– 9% - WASTE LAND

Ministry of Agriculture and Farmers Welfare

– Department of Agriculture, Co-operation and Farmers Welfare

– Department of Agriculture Research & Education

– Department of Animal Husbandry, Dairying and Fisheries (DAADF)

POPULATION SHARED

Agriculture Manufacturing Services

60% 19%

21%

Despite the decline in its share in population it still plays a major role in the socio-economic development of country.

81%

7% 12%

1978 2015

TOP 10 AGRICULTURAL EXPORTS & IMPORTS

EXPORTED TO •ASEAN

•CHINA

•EUROPE

•S.ARABIA

•UAE

•USA

EXPORTS

IMPORTS

IMPORTED FROM

•ASEAN

•ARGENTINA

•BRAZIL

•CHINA

•EUROPE

•USA

Types of Farming

Primitive Subsistence Farming Practiced on small patches of

land Primitive tools like hoe, dao

and digger sticks are used Family and community labour

is used Farming depends upon

monsoon, natural fertility,, soil and suitability of other environmental conditions to crops grown.

Practiced in Assam, Meghalaya, Mizoram, Nagaland, Manipur, etc

Types of Farming Intensive Subsistence Farming Practiced in areas of high

population pressure on land. Labour intensive farming Biochemical fertilizers and

pesticides used Irrigation used for water supply Results in high production

Commercial Farming High Yielding variety of seeds

used Chemical fertilisers, insecticides

and pesticides in order to obtain higher production.

Used in Haryana, Punjab.

Cropping PATTERN

• The agricultural crop year in India is from July to June.

• The three cropping seasons are Kharif, Rabi and zaid

– Kharif

• July –October during the south-west monsoon

• Crops include Groundnut, Urad, Jowar, Arhar (pulses), Rice, Cotton Maize, Pearl Millet/Bajra, Finger millet/Ragi (cereals), Soyabean, Sorghum (oilseeds), etc (GUJARAT MP’S)

– Rabi

• Rabi cropping season is from October-March (winter).

• Crops include wheat, barley, oats (cereals), chickpea/gram (pulses), linseed, mustard (oilseeds) etc.

– Zaid

• Grown between Rabi and Kharif season. i.e., March to June

• Crops watermelon, muskmelon, cucumber, vegetables and fodder.

Major Crops Rice

Staple food crop of a majority of people in India

Second largest producer of rice in the world.

It is a kharif crop which requires high temperature and humidity with annual rainfall of above 100 cm.

Grown in plains of North and North Eastern India, coastal plains and deltaic regions.

Canal irrigation and tube wells made it possible to grow rice in areas of less rainfall such as Punjab, Haryana and West Uttar Pradesh and Parts of Rajasthan.

Major Crops

Wheat Second most important cereal crop. Main food crop in the north an

north-western part of the country. Requires cool growing season and

bright sunshine during ripening and 50-70 cm of annual rainfall evenly distributed over the growing season.

Grown in Ganga-Satluj plains in North West and black soil region in the Deccan.

Major wheat producing states are Punjab, Haryana, UP, Bihar, Rajasthan and parts of MP

Major Crop

Millets Jowar, bajra and ragi are

important millets grown in India. Jowar is third most important

food crop with respect to area and production and grown Karnataka, AP and MP.

Bajra grows well on sandy soils and shallow black soil and grown in Rajasthan, UP, Maharashtra, Gujarat and Haryana.

Ragi is a crop of dry region and grows well on red, black, sandy, loamy and shallow black soil and is grown in Karnataka, Tamil Nadu, Himachal Pradesh, Uttarakhand, Sikkim, Jharkhand and Arunachal Pradesh.

Major Crops

Maize Used for both food and

fodder.

Requires temperature between 21C and 27C.

Requires alluvial soil.

HYV seeds, fertilizers and irrigation have contribute to increased production

Major maize-producing states are Karnataka, Uttar Pradesh, Bihar, Andhra Pradesh and MP

Major Crops

Pulses

India is the largest producer and consumer of pulses in the world

Major pulses grown are tur, urad, moong, masur, peas and gram.

Being leguminous crops they help restore soil fertility.

Grown in MP, UP, Rajasthan, Maharashtra and Karnataka.

Food Crops other than Grains

• Sugarcane

– India is 2nd largest producer after Brazil

– Requires 27C temperature and annual rainfall between 75cms to 100cms.

– It is a source of sugar, gur, khandsari and molasses.

– Grown in UP, Maharashtra, Karnataka, Tamil Nadu, AP, Bihar, Punjab and Haryana.


Oil Seeds

India is the largest producer of oil seeds in the world.

Nine Oil Seeds include groundnut, mustard, sesamum, soyabean, castor seeds, linseed, Niger Seed, Safflower and sunflower.

Used to make edible oil as well as in the production of soap, cosmetics and ointments.


Tea Tea is an important

beverage crops. Introduced in India by the

British. Requires frequent showers

evenly distributed over the year ensuring continuous growth of tender leaves.

Requires abundant and cheap labor.

Major tea-producing states are Assam, Darjeeling and Jalpaiuri district, West Bengal, TN and Kerala.


• Coffee

– India produces about 4% of the world’s coffee production.

– Arabica variety is grown in India that was brought from Yemen.

– Grown in Nilgiri in Karnataka, Kerala and Tamilnadu.


Horticulture Crops India is the largest producer of fruits and vegetables

in the world. Mangoes are grown in Maharashtra, AP, UP and WB. Oranges are grown in Nagpur and Cheerapunjee. Bananas are grown in Kerala, Mizoram, Maharashtra,

and Tamil Nadu Lichi and Guava are grown in UP and Bihar Pineapple are grown in Meghalaya Grapes are grown in AP and Maharashtra Apples, pears, apricots and walnuts are gown in J&K

and Himachal Pradesh. India produces about 13% of worlds vegetable pea,

cauliflower, onion, cabbage, tomato, brinjal and potato.

Non Food Crops

Rubber It is an equatorial crop grown in

tropical and sub-tropical areas.

Requires moist and humid climate with rainfall of more that 200 cm and temperature above 24 C

Rubber in an important industrial raw material.

Mainly grown in Kerala , TN, Karnataka, and Andaman and Nicobar Islands and Garo Hills Meghalaya.

India is the 5th largest producer of world’s natural rubber.

Non Food Crops Fiber Crops Cotton, Jute, Hemp and natural silk. Silk is obtained from cocoons of

silkworms fed in green leaves specially mulberry.

Cotton India is 3rd largest producer of Cotton

in the world. Used to make cotton textile. Requires black soil, light temperature,

light irrigation/rainfall, 210 days of bright sunshine and 6 to 8 months to mature.

Grown in Maharashtra, Gujarat, MP, Karnataka, Andhra Pradesh, Tamil Nadu, Punjab, Haryana and UP.

Non Food Crops

Jute Known as golden fiber.

Grows well on well-drained fertile soil of the flood plains where soils is renewed every year.

High temperature is required during the time of growth.

WB, Orissa, Bihar, Assam and Meghalaya are the major jute producing states.

Used to make gunny bags, mats, ropes, yarn carpets and other artifacts.

Technological and institutional reforms

• Land Reforms – Abolition of intermediaries – Tenancy reforms – Regulation of rent – Security of tenure – Ownership rights to tenants – Land ceilings

• Contract Farming • Corporate Farming • Green Revolution (Production = Productivity * area) • Cooperation and abolition of zamindari

Institutional reforms

• Provision for crop insurance against drought, flood, cyclone, fire and diseases

• Establishment of Grameen (village) banks, and cooperative societies.

• Banks for providing loan facilities to the farmers at lower rates of interest.

Some other schemes

• Grow More Food Campaign (1940s) • Integrated Production Program (1950s) • Green revolution(1960) • Inputs: Irrigation, HYV, Fertilizers, Pesticides, IAAP, HYVP • Kisan Credit Card(KCC) • Personal Insurance Accident Scheme. • Announcement of minimum support price. • Rainbow Revolution. • Ever-Green Revolution (1996) • ICT Revolution • Second Green Revolution

AGRICULTURE CREDIT

• Agriculture Finance:

• 27%-institutional sources

• 22%-non institutional sources

• 51% unable to get any loan

AGRICULTURE CREDIT

• Kinds

– Short Term (6 months – 15 months)

– Medium Term (15 months – 5 years)

– Long Term (> 5 years)

• SOURCES

– Private Sources

– Institutional Sources

• Co-operative Credit Socities, 1951

• Land Development Banks, 1951

• Lead Bank Scheme, 1969

• Commericial Banks & Rural Finance, 1969

• Regional Rural Banks, 1975

• NABARD, 1982

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

• Agricultural Refinance Development Corporation

• NABARD,1982

• NABARD is entrusted with :-

– Providing refinance to lending institutions in rural areas

– facilitating credit flow for promotion and development of agriculture

– Promoting institutional development

– Evaluating, monitoring and inspecting the client banks

IACR: Crop specific Institutes responsible for developing the seeds. Chemical Fertilizers: • Macro Nutrients: NPK(ideally 4:2:1), Sulfur, Calcium, Magnesium. N-Urea P-DAP SSP- K-MOP • Micro Nutrients: Iron, Manganese, Copper, Zinc, Boron, Chloride,

Molybdenum Subsidized: • APM-Administered Price Mechanism. • Deregulation of Phosphatic and Potash fertilizers in 1992 • Now to reduce subsidy ,NBS nutrient based subsidy Irrigation: • Of the total area under food grains, only 48.3% area is irrigated . • 60% irrigation is tube wells,30%-canals. • Command Area Development Programme(CADP),1974-75 • AIBP,1996-97 • Drought Prone Area Programme(DPAP),1973 • Desert Development Programme(DDP),1977


Pricing in Agriculture Minimum Support Price(MSP): It is fixed before sowing i.e start of the season. 24 crops are under MSP CACP,1965 Procurement Price: It is the price at which the government procures foodgrains for buffer stock and PDS. Issue Price : It is the price at which the government sells the agricultural produce from its stocks. PDS : FCI keeps stock of food grains for the government . Food Subsidy-Consumer Subsidy + Buffer Subsidy. Consumer subsidy: the difference of procurement price and issue price. Buffer subsidy : it is the cost incurred between the point of purchase and point of sale 1997-TPDS(APL+BPL) 2000-AAY(Poorest of the poor) NFSA-National Food security Act.


Agriculture Insurance: • National Agricultural Insurance Scheme (NAIS),1999 • MNAIS-Modified NAIS • Agriculture Insurance Company of India Limited, 2002. • Weather-based Crop Insurance Scheme (WBCIS),2007 • COCONUT PALM INSURANCE SCHEME (CPIS) • RIDF-Rural Infrastructure Development Funds,1996 • Micro Finance, 1992 • RKVY-Rashtriya Krishi Vikas Yojana, 2007 • NHM-National Horticulture Mission, 2005-06 • NBM-National Bamboo Mission, 2006-07 • National Food Security Mission (NFSM), 2007. • NCM,2004-MS Swaminathan • National Policy For farmers, 2007





Pradhan Mantri Kaushal Vikas Yojana • PMKVY is a flagship scheme that would ensure that the

youth undergo skill training under NSDC and this scheme would affect the skill sets of around 24 lakh individuals across the length and breadth of the country.

• The National Skill Qualification Framework (NSQF) would be the benchmark of training programs carried out under the PM Kaushal Vikas Yojana.

• The scheme would also award monetary rewards to the successful trainees on completion and the certifications and assessments would be carried out by third party assessment bodies.

• The average monetary reward given to each trainee would be around Rs 8,000


New Schemes : Pradhan Mantri Krishi Sinchayee Yojana : Neeranchal National Watershed Project: Integrated watershed management program (IWMP) Soil Health Card : Swasth Dharaa. Khet Haraa Shanta Kumar Committee on FCI


Pradhan Mantri Fasal Bima Yojana : • premium will be 2 % of the sum insured for Kharif

season crops and 1.5 % for Rabi season crops. The rates are also applicable for oilseeds.

• The premium rates for commercial crops like cotton and other horticultural crops will be 5 % of the insurance sum assured.

INDIAN AGRICULTURE SCENARIO

STRENGTHS o Rich Bio Diversity o Arable Land o Suitable Climate

OPPORTUNITES Exports Agro-based Industry Horticulture Agriculture Literacy

WEAKNESS o Fragmented Lands o Illiteracy o Lack of Technological

Inputs o Poor Infrastructure

THREATS • Unsustainable resource

use • Unsustainable regional

development • inferior quality of crops

• Low productivity

5-Aug-16

Industrial

policy of India

Objectives of the Industrial Policy of the Government are –

to maintain a sustained growth in productivity;

to enhance gainful employment;

to achieve optimal utilization of human resources;

to attain international competitiveness and

to transform India into a major partner and player in the global arena.

Industrial Policy of India

Industrial policy resolution of 1948





Industrial Policy resolutions

NEW EONOMIC POLICY 1991

•Important distinction was made- -public sector, -private sector, -joint sector. • Public sector emphasized • Private sector given limited role(lack of capacity

+ willingness) • Industrial Development Act ,1951


Industrial Department and Regulation Act (IDR Act) was enacted in 1951.

Objective

Empowering the Government to take necessary steps to regulate the pattern of industrial development through licensing.

• This paved the way for the Industrial Policy Resolution of 1956, which was the first comprehensive statement on the

strategy for industrial development in India.

•Shaped by the Mahalanobis Model of growth, which suggested that emphasis on heavy industries would lead the economy towards a long term higher growth path.

The Industrial Policy Resolution - 1956 classified industries into three categories :

Industrial Policy Resolution - 1956

17 industries : exclusively under the domain of the Government. These included inter alia, railways, air transport, arms and ammunition, iron and steel and atomic energy.

12 industries: which were envisaged to be progressively State owned but private sector was expected to supplement the efforts of the State.

The third category contained all the remaining industries and it was expected that private sector would initiate development of these industries but they would remain open for the State as well.

Objectives

• To accelerate economic growth and boost the process of industrialization as a means to

achieving a socialistic pattern of society.

• Removal of regional disparities through development of regions with low industrial base.

Improving living standards and working conditions for the mass of the people.

To reduce disparities in income and wealth.

To prevent private monopolies and concentration of economic power in different fields in the hands of small numbers of individuals

The State will progressively assume a predominant and direct responsibility for setting up new industrial undertakings and for

developing transport facilities.

At the same time private sector will have the opportunity to develop and expand.

The adoption of the socialist pattern of society as the national objective.

It provided for a closer interaction between the agricultural and industrial sectors. Accorded the highest priority to the generation and

transmission of power.

An exhaustive analysis of industrial products was made to identify products which are capable of being produced in the small scale sector.

Joint Sector was allowed in important and export oriented Industries. The list of industries exclusively reserved for the small scale sector was

expanded from 180 items to more than 500 items.

Within the small scale sector, a tiny sector was also defined with investment in machinery and equipment upto Rs.1 lakh and situated in towns with a population of less than 50,000 according to1971 census

figures, and in villages.

Special legislation to protect cottage and household industries was also proposed to be introduced.

INDUSTRIAL POLICY RESOLUTION, 1973

The Government would promote the development of a system of linkages between nucleus large plants and the satellite ancillaries

To boost the development of small scale industries, the investment limit in the case of tiny units was enhanced to Rs.2 lakh, of a small scale units to Rs.20 lakh

and of ancillaries to Rs.25lakh.

A scheme for building buffer stocks of essential raw materials for the Small Scale Industries was introduced for operation through the Small Industries

Development Corporations in the States and the National Small Industries Corporation in the Centre.

Industrial processes and technologies aimed at optimum utilisation of energy or the exploitation of alternative sources of energy would be

given special assistance, including finance on concessional terms.

INDUSTRIAL POLICY RESOLUTION, 1977

Correction of regional imbalances;

Maximum production and achieving higher productivity; Higher employment generation;

Strengthening of the agricultural base through agro based industries;

Promotion of export-oriented industries;

Promotion of economic federalism through equitable spread of investment and dispersal of returns;

Consumer protection against high prices and bad quality.

INDUSTRIAL POLICY RESOLUTION 1980

New INDUSTRIAL POLICY 1991

INDUSTRIAL POLICY 1991 OBJECTIVES

In pursuit of the above objectives,

Government have decided to take a series

of initiatives in respect of the policies

relating to the following areas:

A. Industrial Licensing.

B. Foreign Investment.

C. Foreign Technology Agreements.

D. Public Sector Policy.

E. MRTP Act.

Industries of India

Introduction

The Indian economy is the world's ninth-largest

economy by GDP and third-largest economy by

purchasing power parity (PPP).

Following market based economic reform in 1991,

India became one of the fastest growing major

economies.

It is considered a newly industrialized country. The

industrial sector makes up 18% of GDP.

After Independence the founding fathers saw the

nation progressing with a decent industrial base.

Industrialization in India

Since independence to 1980:

there was restrictive growth of private sector

government's permission was required to set up any private enterprise.

Despite this the GDP grew at a rate of 1.4% per annum from 1940 – 1970.

India during this phase lagged behind in economic growth & overseas trade.

1980 to mid-1990s:

Post 1980s India saw liberalization.

The nation witnessed historical upsurge in per capita GNP.

In 1994-95 the industrial output-growth registered 8.4% growth.

The exports rose by 27%.

1990s to 2000s:

Since liberalization policy, India opened several public sector enterprises.

The exports saw a 28% in 1995-96.

Large Scale Industry

Definition: Large scale industries refers to those industries which require

huge infrastructure, man power and a have influx of capital assets.

The oldest large scale industry of India are:

METAL INDUSTRIES

TEXTILE INDUSTRY

PAPER

AUTOMOBILE MANUFACTURING

INFORMATION TECHNOLOGY

AGRO-BASED INDUSTRY

ENERGY INDUSTRY

CHEMICAL INDUSTRY

TOURISM INDUSTRY

SHIPPING INDUSTRY

Others major industries include:

Agro-based Industry

Size of the Industry:

accounts for about 13%

of the country's total

exports.

Geographical Dist.: All

over the country

Contribution to GDP:

32%

Power and Energy

Industry of India

India’s Power market is the fifth largest in the world.

Coal •Contributes 55% in

Power generation

Gas Contributes 10 % in

Power generation

Oil •India has 2nd

largest oil

reserve in Asia-

Pacific region

•Geographical

distribution:

Assam,Rajasthan,

Chennai,Mumbai,

etc Hydro •Contributes 26%

In Power generation

•India is one of the

pioneering countries

in establishing hydro-

electric power plants. Renewable

Contribute 5% in

Power generation

Nuclear Industry

• India has a vision of becoming a world leader in nuclear technology.

• India has a flourishing and largely indigenous nuclear power program

• expects to have 20,000 MWelectricity nuclear capacity on line by 2020

• It aims to supply 25% of electricity from nuclear power by 2050.

Size of the Industry: 1200

medium to large scale textile mills

Contribution to GDP: 4% of GDP

Percentage in world market: 7%

share in the global market

Export share: 27%

Top leading Companies:

Raymonds, Bombay Dyeing,

Century Textiles e.t.c.

Textile Industry

Size: 57 large & 64 medium & small

sized

Geographical distribution: Cochin,

Chennai, Kerala

Percentage in world market: It ranks

third in the world of Fertilizer production

Market capitalization: 25% to the GDP

•Size :125 large cement plants and

more than 300 mini cement plants

•Percentage in world market: 8% of

share

Chemical Industry

FERTILIZER

CEMENT

Size: 250 large units and about 8000

Small Scale Units. Geographical distribution: West Bengal,

Calcutta, Pune, Mumbai,Banglore.

Percentage in world market : 10%

PHARMACEUTICAL

Paper Industry

• Accounts for about 1.6% of the

world’s paper production.

• It is mainly plantation based

• The industry provides employment

to more than 0.12 million people

directly and 0.34 million people

indirectly

Growth of Paper Industry

Metal Industry Steel Industry

Oldest large scale industry. Exports: 50% of Production

Production:

In 1992: 14.33 million

tonnes

In 2008: 46.575 million

tonnes

Aluminium Industry

first established in the

year 1808

Exports: 82000 tons

annually, especially to

Bangladesh, Sri Lanka,

Egypt and Iraq.

Copper Industry

300 years old,ancient

Indians used copper

for surgical tools.

Major:Copper Companies:

Sterlite Industries,

Hindalco, and Hindustan

Copper

Zinc Industry Indian Zinc industry is now

completely under the private

sector Top leading Companies:

Hindustan Copper Limited

and National Aluminium

Company Ltd

IT Industry

Indian Information Technology industry

is one of the fastest growing industries

in the world.

• Contribution to GDP: 5.9%

• Employment opportunities: 2.3 million

people

• Export: To 95 countries

• Top leading Companies:, IBM , Intel,

Microsoft ,Tata Consultancy Services

• Geographical distribution: Bangalore,

Chennai, Hyderabad, Delhi, Kolkata,Pune

Automobile Industry

From 2010 India is the 7th largest

Automobile manufacturer in world.

Annual Production: 17.5 million

vehicles

Exports: 2.33 million vehicles

Contribution to GDP: 5%

Top Manufacturers: Maruti Udyog

Ltd,TVS Motors, Hero Motors

Tourism Industry

In India Tourism is the largest service

industry.

Indian Tourism Industry is ranked 11th

in the Asia Pacific region and 62nd

overall

20 million people are now working in

the India’s tourism industry.

5 million annual foreign tourist arrivals

and 562 million domestic tourism visits

Geographical distribution: Goa,Shimla,

Jammu and Kashmir, Jaipur, Puri etc.

Contribution to GDP: 6.23%

Expectation: By 2020, Indian Tourism Industry

is expected to contributeRs 8, 50,000 crores

to the GDP.

Tajmahal in Agra: The most attractive destination for tourist in India

Shipping Industry

Indian coastline stretches about

5700 kms on the mainland and

about 7500 kms including the two

island territories.

Size:India has 28 ship building

yards.

International Market Share: India

ranks twentieth worldwide in the

shipping industry and share 0.5% of the

global shipbuilding market.

The small-scale industries have grown rapidly over the years.

SSI Sector creates 2nd largest employment opportunities for the Indian populace.

Contributes almost 40% of the gross industrial value added in the Indian economy.

The medium scale industries mainly constitute production of small parts which are

used as raw materials in the large scale industries.

45%-50% of the Indian Exports is contributed by SSI Sector.

Source :The office of Development Commissioner (MSME)

Types Examples

Food and Allied

Industries

Pickles & Chutneys

Ground nut oil

Wood and Wood

Products

Wooden furniture

Paper Products Exercise books and registers

Chemicals &

Chemical Products

Wax candles, Laundry soap,

Agarbatties

Glass & Ceramics Glass Bangles

Thermo Plastic

Product

PVC Pipes

Types of SSI in India

Medium and Small Scale

Industries

Cottage industry

Large portion of the rural population of India

is supported by Cottage Industries

Responsible for having hugely preserved the

cultural heritage of India.

Their various goods produced include dress

fabrics such as khadi, wool, muslin, leather,

silk, cotton etc, & many precious items like

jewellery, ornaments, statues, idols, gems,

stones, etc and also edible items like spices,

oils, honey, etc

Geographical distribution: Rajasthan, Pune,

Gujarat, Mumbai, Hyderabad, Bangalore

Other Industries

• Aviation Industry: Indian Aviation Industry is one of the fastest growing

airline industries in the world.It has about 450 airports and 1091 registered

aircrafts .

• Diamond Industry: located in Gujarat, Mumbai , Surat. It is growing at a

rate of 40%

• Film Industry: The Indian film industry, famously known as Bollywood, is

the largest in the world, and has major film studios in Mumbai (Bombay),

Calcutta, Chennai, Bangalore and Hyderabad.

• Leather Industry: Indian Leather Industry currently is one among the top 8

industries for export revenue generation in India.

Liberalization of Industrial Licensing Policy

Introduction of Industrial Entrepreneurs’ Memorandum(IEM)

Liberalization of the Locational Policy

Policy for Small Scale Industries

Non-Resident Indians Scheme

Electronic Hardware Technology Park (EHTP)

Software Technology Park (STP) scheme

Policy for Foreign Direct Investment (FDI)

Policy Measures

Some of the important policy measures are:

Source: http://dipp.nic.in/evol1.htm

RED

category

Cement industry, Metal industry,

Diamond Industry, Fertilizer industry,Oil

industry, Paper industry, Power

industry, Textile industry

ORANGE

category Automobile industry, Cotton industry,

Jute industry, Pharmaceutical industry,

GREEN

category

Agricultural industry,Banking industry,

Cottage industry, Food Processing

industry, IT industry, Solar industry

Red: Highly Polluting

Orange: marginally polluting

Green: No pollution

Environmental Impact of Industries of India

•From 1950 to 2008, India

experienced dramatic growth

in CO2 emissions averaging

5.7% per year and becoming

the world's third largest CO2-

emitting country.

•country expect to cut the

emission by 24% by 2020.

Liberalization :It is the Process by which government control is

relaxed or abolished.

Privatization :Privatization is to increase the participation of private

sector in the public sector companies by capital investment or by

management or both or to hand over a public sector unit to private

company.

Globalization: The process of amalgamation of an economy with

world economy is called Globalization. It is signified by lower duties

on import and export .

Disinvestment: To reduce the government share in the public sector

is called disinvestment.

New Industrial Policy,1991:

• Except 18 industries all other were freed from compulsory

licensing in 1991,now only 3 (Atomic energy,Atomic minerals and

railways)

• MRTP,1969 is replaced by competition act,2002

• FERA,1973 replaced by FEMA,2000.


Public sector: Changes

• Now only Three reserved –Atomic energy, atomic minerals and

railways.

• Policy of recommending sick PSUs to BIFR.

Policy of MOU-Arjunsen Gupta Committee

PSU granted more managerial and financial autonomy .

Beginning of

Navratna,Maharatna,Mini-ratna.(1,2)

Policy of disinvestment.

BRPSE,(2004)-Board of Reconstruction of Public Sector Enterprises-

to revive sick PSU units.

VRS-Golden Handshake.

National Investment Fund(2005):

Present status : 290 CPSEs ,234(operational) and 56 (under

construction)



Maharatna

Navratna

Miniratna Category-

I

Miniratna Category-

II

Eligibility

Three years with an

average annual net profit

of over Rs. 2500 crore

(earlier was 5,000 Cr),

OR Average annual Net

worth of Rs. 10,000 crore

for 3 years (earlier was

15,000 Cr), OR

Average annual Turnover

of Rs. 20,000 crore for 3

years (earlier was 25,000

Cr)

A score of 60 (out

of 100), based on

six parameters

which include net

profit, net worth,

total manpower

cost, total cost of

production, cost of

services, PBDIT

(Profit Before

Depreciation,

Interest and Taxes),

capital employed,

etc., ANDA

company must first

be a Miniratna and

have 4 independent

directors on its

board before it can

be made a

Navratna.

Have made profits

continuously for the

last three years or

earned a net profit

of Rs. 30 crore or

more in one of the

three years

Have made profits

continuously for the

last three years and

should have a

positive net worth.

Benefits for

investment

Rs. 1,000 crore - Rs.

5,000 crore, or free to

decide on investments up

to 15% of their net worth

in a project

up to Rs. 1,000

crore or 15% of

their net worth on a

single project or

30% of their net

worth in the whole

year (not exceeding

up to Rs. 500 crore

or equal to their net

worth, whichever is

lower.

up to Rs. 300 crore

or up to 50% of

their net worth,

whichever is lower.

Maharatna CPSEs

• Bharat Heavy Electricals Limited

• Coal India Limited

• GAIL (India) Limited

• Indian Oil Corporation Limited

• NTPC Limited

• Oil & Natural Gas Corporation Limited

• Steel Authority of India Limited

Navratna CPSEs

• Bharat Electronics Limited

• Bharat Petroleum Corporation Limited

• Hindustan Aeronautics Limited

• Hindustan Petroleum Corporation Limited

• Mahanagar Telephone Nigam Limited

• National Aluminium Company Limited

• NMDC Limited

• Neyveli Lignite Corporation Limited

• Oil India Limited

• Power Finance Corporation Limited

• Power Grid Corporation of India Limited

• Rashtriya Ispat Nigam Limited

• Rural Electrification Corporation Limited

• Shipping Corporation of India Limited www.classmateacademy.com 25

Foreign Sector:

• After 1991, Policy is to promote foreign investment in India.

• FDI, allowed in some sectors up to 100%

• FIIs allowed to invest in Indian Capital Market.

• Indian Companies allowed to raise ADR/GDR

Classification of Industries:

• No of Employees

Organised(>10), Unorganised(<10)

• Turnover criteria

• Small sector

Small Scale sector: Definition based on Investment amount .

Since 2006 MSME Act

Manufacturing Services

Micro 25 lakh 10 Lakh

Small 5 cr 2 cr

Medium 10 cr 5 cr www.classmateacademy.com 26

There are about 460 million

workers in the country.

There are about 29 million

workers in the formal sector.

SIDBI-Small Industries Development Bank of India,1990

Recent Measures:

Credit Linked capital subsidy scheme:

SMERA(Small and Medium Enterprises Rating Agency)

Some Important Committees of small scale sector

Abid Hussian Committee: Small Scale Sector.

Meera Seth Committee: Handloom Sector.

M.L Kapoor Committee: Better Credit facility to Small scale sector .

IIP- Index of Industrial of Production(now base 2004-05,Base=100):

682 items

Mining: 14.17% Basic Goods:

Manufacturing: 75..53% Capital Goods:

Electricity : 10.32% Intermediate Goods:

Consumer Goods:



3.61 cr (MSME ),37.5% of GDP

Schemes :

• Prime Ministers employment Generation

Programme

• Micro and small Enterprises –Cluster

Development Programme

• Credit Guarantee Fund Scheme for micro and

small Enterprises

• Performance and Credit Rating Scheme

• Assistance to Training Institutions

• Scheme of Fund for Regeneration of Training

Industries


Recent Initiatives to boost Industrial growth :

E-Biz project : G2B portal to serve as one stop shop foe delivery of

services ,24*7

Skill development : 31 Industry/employer led Sector Skill Councils

and aligned with 25 sectors of ‘Make In India’.

Labour reforms : Shram Suvidha Portal launched for online

registration of units,filing of self-certified,simplified,single online

return .

Mudra Bank : (Micro Units Development Refinance Agency)

5.77 crore small business units

Fund : Rs 20,000 crore.

Loan amount based on stage of business

Shishu : Rs 50,000

Kishor : Rs 50,000-5,00,000

Tarun : Rs 10,00,000

Conclusion

Experts believe that the contribution of India in the world

GDP is estimated to increase from 6% to 11% by the

year 2025

This indicates towards the emergence of India as the

third biggest global economy after US and China.

The evaluation is supported by the overall development

in all the sectors in India, in which the key sector is the

industry sector.

Foreign Sector & International Economic Institutions

Foreign Sector

After Independence : The immediate policy was based on

import restrictions.

Quantitative Restrictions (QRs):

• Negative list –NO Import is allowed.

• Canalised –Import only of essential items but through

specified agencies.

• OGL- Open general license .

Tariff barrier: High rates if Import.

Non-Tariff barrier: Restrictions of import on the ground of

Technology level, human health ,environment etc.

e.g: No car of less than E-IV standards is allowed ,Banning

certain chemicals in Food.

During 1970’s SE Asian countries proved that aggressive

policies can be used to increase the exports.


1992: First five year EXIM policy which was co-terminus with Five Year Plan.

Due the reforms of 1991,

Imports : Procedures for imports were simplified, QRs removed, Tariff rates

reduced now stand at 10% for most of the goods.

Exports : More Emphasis and new schemes to increase the exports from India.

e.g

EPCG: Export Promotion of Capital goods Scheme.

SEZ,Act 2005 :

Started in India ,Asia First EPZ-Kandla,1965.

AEZ: Agriculture Export Zones, Nodal Agency –APEDA (Min Of Commerce)

AEZ-Chillies-Guntur

AEZ-Mangoes-Vijayawada

AEZ-Hyderabad-Grapes,Mangoes


Exim Policy 2002 -2007 ,

• Focus Africa .

• Reviving relations with CIS Countries.

FTP-2004

Introduction of many schemes:

• Focus Market Scheme(FMS)

• Focus Product Scheme(FPS)

• Vishesh Krishi Upaj Yojana (VKUY)

• Served From India (SIF)

FTP-2009 :

FPS,FMS,MLFPS,VKGUY,AIIS(Agri Infrastructure Incentive

scheme)

Other Policies :

Look East Policy: To diversify the direction of our trade, Today

the trade with Asia is 50-55 % of our Total Trade.

Free Trade Area(FTA) : It is an agreement between two


Negative List : The duty concessions will not be available on the

goods included in the negative list .

The whole negotiation is about negative list .

Rule of Origin(ROO) :It should be originated from the country

.If at least 35 % of value addition is in the region.

Positive List : Concession will be available only to the items in

this list . E.g SAFTA.(2006).

Composition of Trade-

Imports Exports

• POL 1.Engineering Goods

• Capital Goods 2.POL

• Electronic Goods 3.Gems & Jewellery

• Gold & Silver 4. Agriculture and allied

• Chemicals 5.Textiles



International Economic Institutions

– Bretton Woods twins

– GATT & WTO

– Asian Development Bank

– New Development Bank

Bretton Woods Conference, 1944

• Bretton Woods, New Hampshire

• 44 nations participated, led by U.S., U.K.

• Established IMF, World Bank

International Monetary Fund, 27 Dec, 1945

• 189 members

• Oversees exchange rate policies

• Monitors international payments imbalances

• Voting % USA – 16.75%

INDIA- 2.3% CHINA- 3.81

International Monetary Fund

• Main function: To help countries overcome international payments crisis

• Crisis occurs when country runs out of foreign exchange reserves – a major currency or gold that can be used to pay for imports and international borrowings

• Special Drawing Rights (SDR): Official currency of IMF (0.888671 grams of fine gold—which, at the time, was also equivalent to one U.S. dollar. After the collapse of the Bretton Woods system in 1973, the SDR was redefined as a basket of currencies. Currently, the Chinese Renminbi (RMB) as the fifth currency, effective October 1, 2016

• IMF conditionality – requirement for the borrowing member to carry out economic reforms in exchange for a loan

Global Financial Crises and the IMF

IMF bailouts for troubled economies

• India (1991)

• Mexico (1995)

• Thailand, Indonesia, Korea (1997)

• Russia, Brazil (1998)

• Turkey (2001)

• Argentina (2001)

World Bank

• Over 180 members

– International Bank for Reconstruction and Development (IBRD)

– International Development Agency (IDA)

– International Finance Corporation (IFC)

– Multilateral Investment Guarantee Agency (MIGA)

– International Centre for Settlement of Investment Disputes (ICSID)

World Bank

• Main functions: provide loans to developing countries for projects aimed at:

– poverty reduction

– improvement of health and education systems

– infrastructure for private sector development (bridges, dams, etc.)

GATT

– General Agreement on Tariffs and Trade (GATT), set of multilateral trade agreements aimed at the abolition of quotas and the reduction of tariff duties among the contracting nations.

– GATT was concluded by 23 countries at Geneva, in 1947 (to take effect on Jan. 1, 1948)

World Trade Organization

Formation :1 January 1995; 21 years ago

Type: International trade organization

Purpose: Regulate international trade

Headquarters: Geneva, Switzerland

Region served: Worldwide

Membership: 163 member states

Official language: English, French, Spanish

Director-General: Roberto Azevêdo

Asian Development Bank Motto: Fighting poverty in Asia and the Pacific

Formation: 19 December 1966

Type: Multilateral Development Bank

Legal status: Treaty

Purpose: Social and economic development

Headquarters: Manila, Philippines

Region served: Asia-Pacific

Membership: 67 countries

President: Takehiko Nakao

New Development Bank (NDB)

Abbreviation: NDB, or NDB BRICS

Formation: July 2014 (signed), July 2015 (force)

Type: International Financial Institution

Legal status: Treaty

Headquarters: Shanghai, China

Membership: BRICS

Official language: English

President: K.V. Kamath

New Development Bank (NDB)

• The BRICS nations account for nearly $16 trillion in GDP and 40 per cent of the world's population.

• BRICS grouping is to help each other "in case of any problems with dollar liquidity".

European Central Bank

Headquarters: Frankfurt, Germany

Established: 1 June 1998

President: Mario Draghi

Central bank of Eurozone

Currency: Euro

Reserves: 526 billion euro in total

19 national banks

Documents

PLANNING - Classmate · MEANING the making of major economic decisions— what and how much is to be produced and to whom it is to be allocated by the conscious decision of a determinate