1. Wholesale price inflation accelerated to 14.55% in March
Tags: Economics/Business
Inflation in India’s wholesale prices hit a four-month high of 14.55% in March, from 13.11% in February.
The main reason for inflation in the month of March 2022 is the rise in the prices of petroleum, natural gas, mineral oil, and basic metals, which has arisen due to disruption in the global supply chain due to the Russia-Ukraine war.
This is the 12th month in a row that wholesale inflation has exceeded 10%.
Fuel and power inflation surged to a three-month high of 34.5% in March, from 31.5% in February, while inflation in primary articles accelerated to 15.54% from 13.39%.
The month-on-month rise in the fuel and power index was 5.68%, more than double February’s 2.7%.
The sharp rise in fuel and power inflation was triggered mainly by an uptick in electricity prices.
Wholesale price inflation, which was at 7.89% in March 2021, had hit a record high of 14.9% in November 2021 and was at 14.3% in December.
What Is a Wholesale Price Index (WPI)?
—it is an important index for calculating inflation in a country.
—Wholesale Price Index (WPI) measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.
—WPI is unlike the Consumer Price Index (CPI), which tracks the prices of goods and services purchased by consumers.
–It is published by the Office of the Economic Adviser, Ministry of Commerce and Industry.
2. India's sugar exports grow by 291% since 2013-14
Tags: Economics/Business
India's Sugar Exports witnessed an astounding growth of 291% from USD 1,177 million in FY 2013-14 to USD 4600 million in FY 2021-22.
According to DGCI&S data, India exported sugar to 121 countries around the world.
Sugar export jumped 65 per cent in 2021-22 corresponding to the previous year.
The growth was achieved despite logistical challenges posed by COVID19 pandemic in the form of high freight rates, container shortages, etc.
According to the DGCI&S data, India had exported sugar worth USD 1965 million in 2019-20, which rose to USD 2790 million in 2020-21 and USD 4600 million in 2021-22.
In 2021-22 (April-February), India exported sugar worth USD 769 million to Indonesia, followed by Bangladesh (USD 561 million), Sudan (USD 530 million) and U.A.E (USD 270 million).
India also exported sugar to Somalia, Saudi Arabia, Malaysia, Sri Lanka, Afghanistan, Iraq, Pakistan, Nepal, China, etc.
Indian sweetener has also been imported by the USA, Singapore, Oman, Qatar, Turkey, Iran, Syria, Canada, Australia, South Africa, Germany, France, New Zealand, Denmark, Israel, Russia, Egypt, etc.
Major sugarcane-producing states
–Uttar Pradesh, Maharashtra and Karnataka account for nearly 80 percent of the total sugar production in the country.
–The other major sugarcane-producing states are Andhra Pradesh, Gujarat, Madhya Pradesh, Odisha, Tamil Nadu, Bihar, Haryana, and Punjab.
–India is the world’s second-largest sugar producer after Brazil.
–Since 2010-11, India has consistently produced surplus sugar, comfortably exceeding the domestic requirements.
3. Egypt approves India as wheat supplier
Tags: Economics/Business International News
Egypt, which is one of the largest importers of wheat from Ukraine and Russia, has approved India as a wheat supplier.
Egypt is likely to lift about one million tonnes of wheat from India, of which 240,000 tonnes will be shipped in April itself.
Export was approved after a rigorous process of field visits and checks in quarantine facilities in India by Egyptian authorities.
The teams visited wheat fields in Madhya Pradesh, UP and Punjab to check for themselves the quality of wheat produced in India.
India aims to export 10-11 million tonnes of wheat in FY23 due to the surge in global demand following the Russia-Ukraine crisis.
India’s wheat export
India's wheat exports rose to $1.74 billion in April-January 2021-22 as against $340.17 million in the same period last year.
In 2019-20, wheat exports were worth USD 61.84 million, which rose to USD 549.67 million in 2020-21.
India's wheat exports are mainly to neighbouring countries with Bangladesh having the largest share of more than 54 percent.
4. Indian government abolishes import duty on cotton
Tags: Economics/Business
The government of India has scrapped the 5% basic custom duty on imported cottons and has reduced it to zero percent till 30 September 2022.
Till now the imported cotton was taxed at 11% which included the custom duty of 5% plus 5% agriculture infrastructure development cess and 1% surcharge.
This new zero percent duty on imported cotton will be applicable from 14 April 2022 till 30 September 2022.
5. About 30% of MSMEs in the country are owned by OBC entrepreneurs
Tags: Economics/Business
Other Backward Classes (OBC) entrepreneurs own about 30% of the Micro, Small and Medium Enterprises (MSMEs) in the country.
As on March 31, 2022, the number of OBC-owned MSMEs stood at 23.31 lakh units out of a total of about 80.16 lakh units in the country.
Of the units owned by OBCs, about 41% are located in three states – Tamil Nadu (14.5%), Maharashtra (14.4%) and Rajasthan (12.4%).
As per the social category wise distribution, the share of MSME units in the general category is the highest with 61.8%. There are 49.56 lakh units belonging to this category.
6.8% of units owned by SC Entrepreneurs, of which about 5.43 lakh units are owned by SC Entrepreneurs.
Whereas Scheduled Tribe entrepreneurs run around 1.68 lakh units with 2.1% share.
A little over 18,000 units fall into the category of "unknown".
6. ADB Ventures funds Indian pension-tech startup
Tags: Economics/Business
The Asian Development Bank’s (ADB) venture capital funding arm has provided seed funding, along with two other investors, for an Indian pension tech start-up striving to provide retirement solutions for millions of informal workers in India and across Asia, Africa and Latin America.
ADB Ventures, which invests in early stage technology companies globally that address urgent development challenges in emerging Asia and the Pacific, has committed to invest in the New Delhi based firm pinBox that has developed a micropension platform.
In India, pinBox is working with players such as HDFC Pension and SBI AMC to deliver pension schemes, including access to the National Pension System, and insurance products to nonsalaried workers.
Startup India Seed Fund Scheme (SISFS):
Seed funding or seed stage funding is an initial investment intended to help grow a business and generate its own capital.
The scheme was launched by the Department for Promotion of Industry and Internal Trade.
7. Canada made Indian bananas and baby corn accessible to its market
Tags: Economics/Business National News
The Negotiations between the National Plant Protection Organizations of India and Canada on the issue of market access for Indian bananas and baby corn have resulted in these items gaining access to the Canadian market.
In a meeting held between Shri Manoj Ahuja, Secretary (DA&FW) and H.E. Cameron MacKay Canadian High Commissioner on 07.04.22, Canada informed that export of fresh baby corn from India to Canada may begin from April 2022 after updation of directive D-95-28: Plant Protection Import and Domestic Movement Requirements for Corn and the Automated Import Reference System (AIRS).
Further, based on the technical information provided for fresh banana by India, Canada has approved, banana for entry into Canada with immediate effect.
This decision of the Government of Canada would immensely benefit the Indian farmers growing these crops and would also enhance India’s export earnings.
Boost to India's agricultural exports:
Along with this, the Ministry of Commerce and Industry informed that India's agricultural exports have crossed USD 50 billion in the year 2021-22 despite the logistical challenges arising out of Corona like high freight rates and lack of containers etc.
According to the provisional data released by the Directorate General of Commercial Information and Statistics (DGCI&S), agricultural exports grew by 19.92 percent to USD 50.21 billion during 2021-22, the ministry said.
8. Gujarat again tops NITI Aayog’s Export Preparedness Index 2021
Tags: Popular Economics/Business
Gujarat has topped the National Institution for Transforming India (NITI) Aayog’s Export Preparedness Index 2021 for the second time in a row. The index assesses the readiness of the states in terms of their export performance and potential. The index was released by NITI Aayog Vice Chairman Dr Rajiv Kumar, in the presence of NITI Aayog CEO Amitabh Kant.
Highlights of the report
- The report was prepared by NITI Aayog, in partnership with the Institute of Competitiveness Gurugram, Haryana was released on 25 March 2022.
- Gujarat was the top ranked state followed by Maharstra and Karnataka
The EPI ranks states and Union Territories on 4 main pillars
Policy
Business Ecosystem
Export Ecosystem;
Export Performance
and 11 sub-pillars—Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Access to Finance; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
The main aim of the EPI’s report is to promote competition among all Indian states to bring about favourable export-promotion policies, ease the regulatory framework to prompt subnational export promotion, create the necessary infrastructure for exports, and assist in identifying strategic recommendations for improving export competitiveness.
Institute of Competitiveness
The Institute for Competitiveness is part of the global network of the Institute for Strategy and Competitiveness at Harvard Business School, United States .
It is an research institution dedicated to understanding competition and strategy
Headquarters : Gurugram, Haryana
NITI Aayog
It was set up by the Government of India to replace the Planning commission.
The NITI Aayog serves as the apex public policy think tank of the Government of India for economic growth and development of the country .
It was set up on 1 January 2015
Prime Minister is the ex officio chairman of NITI Aayog
- Headquarters : New Delhi
9. Rail Green Points for Freight Customers
Tags: Economics/Business
Indian Railways has laid down Policy guidelines recently to assign carbon saving point, termed as Rail Green Points, to freight customer.
It will be applicable only to the freight customers who are registered on e-Registration of Demand(e-RD) portal of Freight Operations Information System(FOIS).
Every customer who places demand online (on e-demand module) for freight services will be given the details of the expected saving of carbon emission called Rail Green Points.
The green points will be credited to customer’s account on Freight Business Development portal.
Downloadable certificate displaying Rail Green Points will also be provided.
The Rail Green Points can’t be claimed for any benefit from Railways.
Rail Green Points will be reckoned on financial year basis.
Corporate customers can mention the Green Points on their website, and in their Annual Reports.
The module for Rail Green Point will be developed by Centre for Railway Information Systems/Freight Operations Information System (CRIS/FOIS).
The scheme is likely to be launched in April 2022.
10. India achieves $400 billion merchandise exports well before target date
Tags: Economics/Business
For the first time ever, India’s annual merchandise goods exports crossed the $400billion mark in FY22, nine days ahead of the target, even after registering a dip in FY21 due to pandemic. This is a key milestone in India’s Atma Nirbhar Bharat journey on the theme of “Local Goes Global - Make in India for the World”.
This is far higher than the previous record of USD 330 billion achieved in 2018-19.
December 2021 recorded the highest ever monthly merchandise exports recorded at USD 39.3 billion.
This is achieved through an increase in shipments of merchandise, including engineering products, apparel and garments, gems and jewellery and petroleum products.
Agriculture sector too had recorded its highestever export during 2021-22 with the help of export of rice, marine products, wheat, spices and sugar.
Both Basmati and Non-Basmati varieties of rice, achieved 90-100% of the total export target.
Engineering goods exports have gone up by nearly 50% vis-à-vis last year
Export of Cotton Yarn/Fabrics/Made-ups, Handloom Products etc, Gems and Jewellery, Other Cereals and Man-Made Yarn/Fabrics./Made-up etc. have registered a growth rate between 50%-60%
There was a detailed strategy in place behind the achievement of the export target, including specific targets set - country-wise, product-wise & Export Promotion Council(EPC)-wise, monitoring and course correction.
This boost in the exports will bolster India’s position in the ongoing negotiations for Free Trade Agreements (FTAs) with several trade partners
Despite the surge, India’s balance of trade remains negative
Efforts made to boost exports-
The Interest Equalisation Scheme has been extended to exporters and is likely to benefit a large number of MSME exporters.
Roll out of Export Incentive Schemes like-
Rebate of State & Central Taxes and Levies (RoSCTL) Scheme
Remission of Duties and Taxes on Export Products (RoDTEP) Scheme
PLI schemes for 13 key sectors of manufacturing
Districts as Exports Hub (DEH) initiative has been adopted to boost local production and make Districts active stakeholders in driving export growth of local products/services.
Coordination among multiple stakeholders to set up a firm backward - forward linkage, starting from the district level to the overseas market
