1. Govt constitutes M Damodaran committee to suggest ways to attract VC/PE investments
Tags: committee Economy/Finance
The Union Ministry of Finance on 13 September 2022 has set up a committee to suggest ways to attract venture capital and private equity (VC/PE) investments in India.
IMPORTANT FACTS -
- The Committee will be headed by the former chairman of the Securities and Exchange Board of India (SEBI), M Damodaran.
- The Finance minister in her Budget speech for the fiscal year 2022-23 had stated that the government was considering forming a committee that will encourage Private Equity and Venture Capital investment in India.
- According to the Ministry the committee will "comprehensively study, using a systems approach, the end-to-end frictions and potential accelerants from regulatory policy and taxation to facilitate ease of investing, as well as to encourage investments in India".
Venture Capital Fund and Private Equity are regulated by SEBI in India.
2. Newly Constituted Board of Trade first meeting held in New Delhi
Tags: place in news Economy/Finance
The first meeting of the newly constituted Board of Trade was held in New Delhi on 13 September 2022. The meeting was presided over by the Union Minister for Commerce and Industry Piyush Goel.
The Board of Trade meeting focused on export target setting, the new Foreign Trade Policy (2022-27), and the strategies and measures to be taken in order to take forward domestic manufacturing and exports.
IMPORTANT FACTS -
Board of Trade and its functions :
- The Board of Trade was set up by the government of India by merging Council for Trade Development and Promotion with Board of Trade,
- The Board of Trade advises the Government on policy measures connected with the Foreign Trade Policy in order to achieve the objectives of boosting India’s trade.
- It provides a platform to state governments and Union Territories (UT) for articulating state-oriented perspectives on Trade Policy.
- It also acts as a platform to the Government of India for appraising State Governments and UT about international developments affecting India’s trade.
- It is an important mechanism for deliberations on trade related issues with industry bodies, associations, export promotion councils, and state and UT governments.
3. Vedanta, Foxconn signs MoU with Gujarat government to set up a semiconductor unit in the state
Tags: place in news Economy/Finance Science and Technology
In a boost to the government’s semiconductor mission, Anil Agarwal led Vedanta Group and electronic manufacturing giant Foxconn of Taiwan signed a Memorandum of Understanding (MoU) with the Gujarat Government on 13 September 2022 to set up a FAB manufacturing unit in the state. The manufacturing unit which will include display and semiconductor facilities will be set up near Ahmedabad.
Update on 16 September 2022
The Vedanta Limited has issued a clarification on 16 September 2022 that Volcan Investments would undertake the business of manufacturing semi-conductors and not Vedanta Limited. Volcan Investments is a holding company wholly owned by the Agarwal family trust. It is also the majority shareholder of the London based Vedanta Resources and owns more than 50 percent stake in Vedanta India. However, unlike Vedanta India, Volcan Investments is unlisted.
- The agreement was signed in the presence of Union Minister for Railways, Communication, Electronics and Information Technology Ashwini Vaishnaw.
- A fab (fabrication facility) is short for fabrication plant where raw silicon wafers are processed and turned into integrated circuits.
IMPORTANT FACTS -
Joint Venture partners :
- The manufacturing giant Foxconn will be the technical partner in the Joint venture while the oil-to-metals conglomerate Vedanta is financing the project, as it looks to diversify into chip manufacturing.
- Under the Joint Venture , Volcan Investment will hold a majority stake of up to 60%, and the remaining 40% will be held by Foxconn.
- The total investment in the manufacturing unit will be Rs 1, 54,000 crore to set up the facility in Gujarat which is expected to create one lakh job opportunities.
Other Chip manufacturing proposals :
- Vedanta is the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures, which are setting up in the southern states Karnataka and Tamil Nadu, respectively.
- The world chip market is dominated by China and Taiwan and India wants to be self-sufficient in this critical technology
India’s Semiconductor Mission :
- On 29 December 2022, the Information Technology Minister, Ashwini Vaishnaw, launched the India Semiconductor Mission.
- Under the policy, the government will provide Rs 76000 crore incentives for companies setting up manufacturing facilities in India.
- This was done by the government to encourage companies to set up chip manufacturing plants in India.
What is semiconductor :
- Semiconductors are materials which have a conductivity between conductors and insulators. They can be pure elements, silicon or germanium or compounds; gallium, arsenide or cadmium selenide.
- They are the basic building blocks that serve as the heart and brain of all modern electronics and information and communications technology products.
- These chips are now an integral part of contemporary automobiles, household gadgets and essential medical devices such as ECG machines.
Fabrication units in India :
- Currently, India has two fabrication facilities (fab).One is Society for Integrated Circuit Technology and Applied Research (SITAR) of the Defense Research and Development Organisation (DRDO) in Bengaluru and a semiconductor laboratory in Chandigarh, which builds silicon chips for strategic purposes like defense and space and not for commercial use.
ADDITIONAL INFORMATION -
Vedanta limited :
- It is a multinational company headquartered in Mumbai, India.
- It is in the business of Zinc-Lead-Silver, Iron ore, Steel, Copper, Aluminium, Power, Oil and Gas.
- The Chairman of Vedanta group: Anil Aggarwal
4. MeitY Startup Hub, Meta to launch program to accelerate XR technology startups in India
Tags: National Economy/Finance National News
The Ministry of Electronics and Information Technology (MeitY) will launch a program to support and accelerate XR technology startups across India in collaboration with Startup Hub META.
IMPORTANT FACTS -
- This collaboration is part of the government's efforts to skill in emerging and futuristic technologies.
With a large talent pool of creators, developers and a vibrant technology ecosystem, India has the potential to play a significant role in the metaverse.
MeitY Startup Hub, an initiative of MeitY, is a national platform focused on promoting technology innovation, start-ups and creation of intellectual property.
Currently, it has over 3,000 tech startups, with the expectation of growing to over 10,000 startups in the next three to five years.
Minister of Electronics and IT - Ashwini Vaishnaw
5. India joins 3 pillars of the US led Indo-Pacific Economic Framework (IPEF)
Tags: Economy/Finance International News
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India has decided not to join the trade pillar of the United States-led Indo-Pacific Economic Framework (IPEF) for now but has agreed to join the other three pillars: supply chains, tax and anti-corruption and clean energy.
IMPORTANT FACTS -
- This was declared by the Union Commerce and Industry Minister Piyush Goel at the end of the trade ministers first in person meeting of the IPEF, held in Los Angeles, United States on 9 September 2022.
Why India has not joined the Trade pillar :
- The Minister said that the trade pillar which deals with trade requires commitment of the member countries on environment, labour, digital trade, and public procurement.
- He said that India is not certain what benefit it will get by joining this trade pillar.
- He expressed the fear that the trade pillar may set high standards of compliance which may discriminate against the developing countries.
- Giving an example he said that the United State has set a high standard on environment protection which is applicable on the energy companies. It has set stringent norms for power plants so that they are low polluting and more environment friendly. This mandates investment in new technology which makes the power produced costly.
- If India follows the US standards then it will adversely impact India’s economic development. India needs cheap power so that it is accessible to all. It cannot afford costly powers.
- Similar concerns are also there in the field of labour, digital trade, and public procurement.
6. Gadkari calls for joint effort to achieve 5 trillion dollar economy goal
Tags: place in news Economy/Finance Summits Person in news State News
While addressing the 41st Meeting of the Transport Development Council at Bengaluru ,Karnataka on 9 September 2022 ,Union Minister for Road Transport and Highways Nitin Gadkari said that both the Centre and the States should work together to transform the transport sector.
IMPORTANT FACTS -
- The 41st Transport Development Council meeting was held as part of the 3 day ‘Manthan’ organised by the Union Ministry of Road Transport and Highways at Bengaluru.
- Gadkari said that” In the next five years, both the Centre and the states should work together to transform the transport sector of the country to become a five trillion-dollar economy,”
- In 2019, Prime Minister Narendra Modi envisioned making India a $5 trillion economy and global powerhouse by 2024-25.
- He further said that efforts should be made to increase the automobile industry from 7.5 lakhs crore to 15 lakhs crore in the next 5 years enabling India as a top automobile manufacturing hub in the world.
- Ministers of Transport from Uttar Pradesh, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Manipur, Goa, Karnataka, Delhi and Tamil Nadu participated in the 41st Transport Development Council.
7. Indian origin Devika Bulchandani appointed as the Global CEO of Ogilvy
Tags: Economy/Finance Person in news International News
The leading global advertising and public relations agency Ogilvy has named India-born American citizen Devika Bulchandani as its Global Chief Executive Officer. Ogilvy is part of the London based British multinational company WPP.
IMPORTANT FACTS -
- The Amritsar born 53 years old Bulchandani is the latest in a number of Indian origin persons taking leadership positions in multinational companies.
- Last week coffee giant Starbucks appointed Laxman Narasimhan as its chief executive.
- The list includes Microsoft CEO Satya Nadella, Adobe CEO Shantanu Narayen, Alphabet CEO Sundar Pichai, Twitter head Parag Agrawal, Leena Nair from Chanel, IBM Group CEO Arvind Krishna, Bata CEO Gunjan Shah, and Novartis CEO Vasant Narasimhan.
8. NTPC to Supply Renewable Power to Army’s Western command for next 27 years
Tags: place in news Economy/Finance Defence
India’s largest power company NTPC has signed a long term agreement with the Army’s Western Command to supply 25 MW/year of solar power from the national solar grid of the country for the next 27 years.
IMPORTANT FACTS -
- This is the first agreement by the Indian Armed Forces for sourcing power from renewable energy sources,” said NTPC in a Twitter post.
- The Memoranda of Understanding (MOU) was signed at Western command headquarters, Chandimandir, Haryana on 8 September 2022.
- According to a statement issued by the Western Command, the new move will decarbonize upto 38 percent of the energy portfolio of Western Command, apart from accruing a substantial savings to the exchequer.
- The solar energy will be sourced from Sholapur in Maharashtra.
NTPC Renewable energy capacity :
- Presently, NTPC has 2.3 GW of commissioned renewable capacity.
- The NTPC Group plans to achieve 60 Giga Watt of renewable energy by 2032.
- NTPC recently commissioned India’s largest floating solar plant at Ramagundam, Telangana. It is a 100 MW plant.
ADDITIONAL INFORMATION -
Command structure of the Indian Army :
- The Headquarter of the Indian Army is at New Delhi with the President being the Commander in Chief of the Army.
- Headquarters of the Indian Army: New Delhi
- Chief of Army Staff: General Manoj Pande
- The Indian Army has 6 operational commands and one Training command. Each command is headed by a General Officer Commanding in Chief with the rank of Lieutenant General.
Command | Headquarters |
Western Command | Chandimandir (Haryana) |
Eastern Command | Kolkata (West Bengal) |
Southern Command | Pune(Maharashtra) |
Northern Command | Udhampur(Jammu ) |
Central Command | Lucknow (Uttar Pradesh) |
South -Western Command | Jaipur (Rajasthan ) |
Army Training Command | Shimla(Himachal Pradesh) |
Army Day is observed on 15 January every year.
9. India bans export of broken rice and impose 20% duty on non-basmati rice
Tags: Economy/Finance
The Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industries has issued a government notification banning the export of broken rice on 8 September 2022. Earlier in the day the Finance Ministry imposed a 20% duty on the export of non-basmati rice except for parboiled rice.
Both the decisions are effective from 9 September 2022.
IMPORTANT FACTS -
Why this has been done by the government ?
- Government hopes that these steps will increase the availability of rice in India and curb the rise in the price of rice which is a staple diet for many Indians.
- According to the Agriculture Ministry, the area under the paddy crop has been down by 5.62 per cent to 383.99 lakh hectare in the ongoing Kharif season (2022-23) so far due to deficiency in monsoon rainfall in key growing states of West Bengal, Bihar, Jharkhand and Uttar Pradesh.
- West Bengal is the largest rice producing state in India followed by Uttar Pradesh and Punjab.
- According to the 4th Agricultural advance estimates of the Agricultural ministry, in the 2021-22 agricultural season (July-June) the estimated rice production in India is 130.29 million tonnes.
- However the rice production in the next crop year (2022-23) could decline by around 10 million tonnes.
India a major rice exporter :
- India is the second largest producer of rice in the world after China.
- However it is the largest exporter of rice in the world with a 40% share in the world rice market. Thailand, Vietnam and Pakistan are the other major exporters of rice in the world.
- In terms of volume, Bangladesh, China, Benin and Nepal are five major export destinations of Indian rice.
- The country exported 21.2 million tonnes of rice in 2021-22, of which 3.94 million tonnes were basmati rice. It exported non-basmati rice worth USD 6.11 billion in the same period.
ADDITIONAL INFORMATION -
Impact on the world :
- The decision of India has contributed to the immediate rise in the price of rice in the world market. It has also affected the price of wheat and maize in the international market as rice importing countries are expected to shift to maize and wheat.
- China and the Philippines will be immediately affected by the Indian decision.
- China is the largest buyer of the broken rice from India which is used as animal feed in the country. Both China and the Philippines will have to buy rice from other sources at higher prices or shift to other crops.
- Thailand and Myanmar will benefit from the Indian decision as the buyer of India will shift to these countries.
10. India ranks 132nd out of 191 in UNDP's human development index
Tags: Economy/Finance International News
According to the United Nations Development Program (UNDP) report released on 8 September, India is ranked 132 out of 191 countries in the Human Development Index (HDI) 2021.
Switzerland tops the rankings, followed by Norway at second and Iceland at third.
South Sudan, Chad and Niger are at the bottom of the HDI scale.
IMPORTANT FACTS -
- In the 2020 report, India had ranked 131st among 189 countries.
The report said that nearly 90 percent of countries have reported a decline in their HDI rankings in 2020 or 2021.
Among India's neighbours, Sri Lanka (73rd), China (79th), Bangladesh (129th), and Bhutan (127th) rank above India, while Pakistan (161st), Nepal (143th) and Myanmar (149th) rank worse.
India's latest HDI value is 0.633 which places the country in the medium human development category, lower than its value of 0.645 in the 2020 report.
The reason for the decline in the ranking of more than 90 percent of the countries is the Covid-19 pandemic.
The report raises concerns over growing polarization that is eroding democratic freedoms and human rights in many parts of the world.
Gender Inequality :
The COVID-19 pandemic has also exacerbated gender inequality, which has risen by 6.7% globally.
India has shown a slight improvement in its Gender Inequality Index value in the latest report as compared to the 2020 index (0.490 vs 0.493).
The index measures inequality between women and men in three dimensions – reproductive health, empowerment and the labour market.
ADDITIONAL INFORMATION -
About Human Development Index :
The United Nations Development Program (UNDP) published its first Human Development Report (HDR) in 1990.
The report attempts to define and measure the level of development of economies.
Three indicators of Human Development Report (HDR)
Health - Measured by the life expectancy at birth
Education - Measured by the mean of years of schooling
Standard of Living - Measured by GNI (Gross National Income/Product) per capita at ‘Purchasing Power Parity
