Current Affairs for CSE - Part IV

In this section we will discuss about the various economic sectors in India i.e. primary, secondary and tertiary. The primary sector consists of Agriculture and other allied activities like fishing, livestock rearing etc. Secondary sector consists of industries and manufacturing while the tertiary sector consists of the different services.

Agriculture and other primary sectors

Though the contribution from Agriculture to the country's GDP is lesser compared to other sectors, the majority of the population still depends on it and hence agriculture remains the sole bread winner in rural India. The issues in agriculture span across production, distribution, marketing, processing etc.

1. Soil Health Card Scheme

The scheme is tailor-made to issue ‘Soil card’ to farmers which will carry crop-wise recommendations of nutrients and fertilizers required for the individual farms. This is aimed to help farmers to improve productivity through judicious use of inputs.

2. National Policy on Organic farming

The Paramparagat Krishi Vikas Yojana (PKVY) is an initiative to promote organic farming in the country. Under this scheme, groups or clusters consisting of 50 farmers with 50 acres of land would be encouraged to take up organic farming methods.

3. Pradhan Mantri Krishi Sinchayee Yojana 

It is a programme to promote irrigation. Accelerated Irrigation Benefit Programme (AIBP), Integrated Watershed Management Programme and Farm water management component of National Mission on Sustainable Agriculture would be converged for the same.

4. Gramin Krishi Mousam Seva 

It is the weather forecast farm advisory system to be developed at the Taluk level in India. Weather forecasting is already up while the interpretation system is being developed. The farmers connected to the system will be alerted through SMSs.

5. Pradhan Mantri Fasal Bima Yojana

It is the crop insurance scheme replacing the National Agricultural Insurance Scheme (NAIS). Farmer has to pay a premium of only 2% for kharrif crops, 1.5% for Rabi crops and 5% in case of commercial and horticultural crops.

6. Pulse Production in India

India is the largest producer of pulses in the world, but still the supply is short of demand. Hence it depends on other nations to import pulses. The National Food Security Mission (NFSM) has a major component to improve the pulse production. The Food and Agricultural Organisation (FAO) has designated 2016 as the year of pulses.

7. Krishi Kalyan Cess

A 0.5% cess on all taxable services, proceeds from which would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers

8. Price stabilisation fund

The fund, with a corpus of Rs. 500 crore, will be used to support market interventions for managing prices of perishable agri-horticultural commodities. The PSF will be used to advance interest-free loans to State governments and Central agencies to support their working capital and other expenses on procurement and distribution interventions for such commodities.

9. Reforms in Public Distribution System 
The Shanta Kumar Committee on restructuring the Food Corporation of India (FCI) has come with the following recommendations:

• Decentralising the PDS to the States. FCI should procure only the surplus produce
• Reduce the coverage of current Food Security Act to 40% from the current 67%. The states to computerise the list of beneficiaries. The PDS price should be linked to MSP 
• Priority for pulses and oilseeds including their Minimum Support Prices (MSP) and connecting the MSP Policy to the Trade Policy

10. Food processing in India

Processed food accounts for about 32% of the country's total food market. The Government has permitted 100% FDI in food processing through automatic route.  There is a plan to set up 42 mega food-parks across India. There would be more than 100 cold chain projects to develop the supply chain infrastructure for perishable goods.

11. Online marketing of agricultural goods
e-NAM - the e-trading platform for the National Agriculture Market has been launched by the Government. The idea behind the online market is to provide transparency in pricing and thus liberate the farmers from the clutches of middle-men. Currently it has been rolled out in eight states. Many states have amended their Agricultural Produce Marketing Committee (APMC) Act to accomodate e-marketing.

12. Blue revolution in India 
The Meenakumari Committee has recommended Deep sea fishing in India's Exclusive Economic Zone (12 to 200 nautical miles from the coast). Large vessels either owned by Indian entrepreneurs or operated as joint ventures (upto 49% foreign investment) may be deployed for deep sea fishing. Currently India is lacking in adequate expertise or resources to exploit water beyond 500 metres depth.

13. Rashtriya Gokul Mission
The aim of the programme is to enhance the productivity of indigenous breeds through professional farm management and ensuring superior nutrition by establishment of Gokul Grams. It is a focussed project under National Programme for Bovine Breeding and Dairy Development. It is proposed to establish Integrated Indigenous Cattle Centres or Gokul Grams in the breeding tracts of indigenous breeds.

Reforms in secondary and tertiary sectors

According to the recent estimates, the service sector accounts for around 60% of India's GDP while the share of secondary (industrial) sector is around 25%. (In the terms of GVA values and the changed base year of 2011-12, these values are 52% and 30% respectively). The Government is currently giving a big push for the industrial sector.  The secondary sector only can provide employment to a large population and not the service sector. But there are many hurdles like the lack of basic infrastructure like electricity and roads, lack of skilled labour, stringent labour and licensing rules, issues in credit creation and the global economic recession. The following are the important issues/events in the industrial and service sectors.

1. 'Make in India' initiative 

It aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. The ‘Make in India’ initiative does not target manufacturing sector alone, but also aims at promoting entrepreneurship in the country. The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset. The first Make in India Week was conducted in Mumbai recently.

2. National Investment and Infrastructure Fund (NIIF) 

It is a Rs 40,000 Crore sovereign wealth fund for the development of greenfield and brownfield projects. The Government would hold 49% of the equities while the rest is to be held by the private sector. NIIF will raise funds from investors and markets and would invest the same in companies, institutions and infrastructure projects. It is called a fund of funds since there are multiple Alternate Investment Funds underneath it. 

3. Centre State Investor Agreement 
It is for effective implementation of Bilateral Investment Treaties with foreign firms. The states that sign these agreements will be seen as more attractive destinations by foreign investors. Thus the Centre would facilitate the process of investment in the states.

4. Shramev Jayate Karyakram on labour reforms
It includes five schemes

• Shram Suvidha Portal: That would allot Labour Identification Number (LIN) to nearly 6 lakhs units and allow them to file online compliance for 16 out of 44 labour laws.
• Random Inspection Scheme: Utilizing technology to eliminate human discretion in selection of units for Inspection, and uploading of Inspection Reports within 72 hours of inspection mandatory
• Universal Account Number: Enables 4.17 crore employees to have their Provident Fund account portable, hassle-free and universally accessible
• Apprentice Protsahan Yojana: Will support manufacturing units mainly and other establishments by reimbursing 50% of the stipend paid to apprentices during first two years of their training
• Revamped Rashtriya Swasthya Bima Yojana: Introducing a Smart Card for the workers in the unorganized sector seeded with details of two more social security schemes

5. Wage security for contract workers 

Contract workers form a major part both in the organised and unorganised sectors. The Ministry of Labour has decided to increase the minimum wage of contract labourers to Rs. 10000 per month by amending the Contract Labour (Regulation & Abolition) Central Rules, 1971. At present the Minimum Wages Act is applied to 45 Economic activities. 

6. Pradhan Mantri  Kaushal Vikas Yojana 

This is a flagship project of the Ministry of Skill Development and Entrpreneurship and being implemented by the National Skill Development Corporation (NSDC). It aims to offer 24 lakh Indian youth meaningful, industry relevant, skill based training. The Skill training would be based on the National Skill Qualification Framework (NSQF) and industry led standards.The trainees will be offered a financial reward and a government certification on successful completion of training and assessment, which will help them in securing a job for a better future. 

7. National Apprenticeship Promotion Scheme
The Scheme has an outlay of Rs. 10,000 crore with a target of 50 lakh apprentices to be trained by 2019-20. The Scheme would be implemented by Director General of Training (DGT) under Ministry of Skill Development and Entrepreneurship (MSDE). It provides for incentivizing employers to engage apprentices. 25% of the total stipend payable to an apprentice would be shared with employers directly by Government of India.

8. Factories Act to be revamped
The Factories Act, 1948 is a legislation that deals with safety, health and welfare of workers and is applicable to establishments with 10 or more workers, if the premise is using power and to establishments with 20 or more workers, without electricity connection. The present legislation aims to do away with the 'inspector raj' and to increase the quality of inspections. It would be applied to establishments that employs at least 40 employees. This would benefit the employers but would result in about 70% of the factory establishments in India excluded from the ambit of the law. 

9. The Model Shops and Establishments Bill, 2016
The bill covers shops and establishments employing ten or more workers except manufacturing units and aims for employment generation. The important provisions are freedom to operate 365 days in a year and opening/closing time of establishment, relaxation of registration procedure, flexible working time for women including night shifts provided enough security and welfare measures are ensured 

10. Start-up India

The aim of the mission is to build a strong eco-system to nurture innovation and Startups in the country. There are many encouraging provisions like a simple compliance regime based on self-certification, tax exemption for 3 years, easy exit, 500 tinkering labs under Atal Innovation Mission, fast-tracking start-up patenting process and a fund of funds with a corpus of Rs 10000 crore. Further a separate India Aspiration Fund has been announced by the Government under the Small Industrial Development Bank of India (SIDBI) that would act as a fund of funds to be invested as venture capital funds in Start-ups and MSMEs. 

11. Easier settlement of commercial disputes
The long delay and the high cost involved in settlement of commercial disputes have made the firms reluctant to invest in India. The Arbitration and Conciliation Act, 1996 has been amended for better grievance redressal. The cases are heard by arbitral tribunals and the legislation limits the involvement of courts that generally lead to unnecessary delays.

12. Insolvency and Bankruptcy Code, 2016   

Resolution of corporate insolvency and restructuring is a very complex and often delayed exercise in India. The new bankruptcy law that will ensure time-bound settlement of insolvency, enable faster turnaround of businesses and create a database of serial defaulters. But its implementation requires insolvency professionals, information utilities and a bankruptcy regulator.Along with the passage of the Bankruptcy Code in this Budget, the Government has moved amendments to the SARFAESI Act, and the Debt Recovery Tribunal (DRT) Act. Further RBI has been accorded greater power to regulate the Asset Reconstruction Companies (ARC).

Next : Capital reforms, banking reforms and money supply.