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29.01.2018 to 31.01.2018 DAILY UPDATED CURRENT AFFAIRS – 29.01.2018 TO 31.01.2018 The Economic Survey 2017-18 • The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser • Last year, for the first time, the government presented a mid-term economic survey in the month of August. • Economic Survey reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. • The 2017-18 document tabled by Finance Minister Arun Jaitley in Parliament. • The theme for the Economic Survey 2017-18 was pink, apparently to confront Indian society’s notorious preference for sons, and the gender injustice faced by women. Implicit in adopting pink is the assumption that it is the colour preferred by women. Here are the top highlights of the Economic Survey: 1. Growth: Indian GDP grow by 6.75% in 2017-18, Indian GDP will grow by 7-7.5% in 2018-19 2. Industry growth=4.4%, Service Growth=8.3%, Agriculture Growth=2.1% for the year 2017-18. Govt has to increase Agriculture growth to achieve its target to double the farmer income by 2022. 3. According to the Economic Survey for the current fiscal 2017-18, the Indian IT industry grew 8 per cent to $140 billion (Rs 8,91,700 crore) in fiscal 2016-17 from $129 billion (Rs 8,256 crore) in the previous fiscal (2015-16). 4. The Economic Survey has predicted gross value added for FY18 at 6.1 percent as against 6.6 percent for the previous financial year. 5. Fiscal deficit target of 3.2% of GDP for 2017-18 and aims to lower it to 3% in 2018-19.However, less- than-expected revenue collections, especially after implementation of GST, and higher expenditure could generate fiscal pressures. Fiscal Deficit: The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included. 6. There has been a 50% increase in the number of indirect taxpayers after GST. 7. Survey calculates that demonetisation-cum-GST has produced 1.8 million additional income tax payers. 8. New income tax filers are up 10.1 million since demonetisation, against an annual average rise of 6.2 million in the previous two years. 9. The Survey noted that five States — Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana — account for 70% of India’s exports. 10. Direct tax collections have risen 18% this year, almost double the nominal GDP growth rate of 9.5%. This favourable trend suggests improved compliance after tax reforms and the attack on black money. This could finally lift India's tax-to-GDP rate to significantly high levels after stagnation for three decades. 11. India's firm export structure is egalitarian: That means the top 1% of Indian firms(Like TCS,Infosys etc) account for only 38% of exports,unlike in other countries where they account for substantially greater share – (72, 68, 67 and 55 percent in Brazil, Germany, Mexico and USA respectively). 12. Formal non-agricultural payroll much greater than believed: this data show the % rise in person involved in other sector rather Agriculture. It became evident that when “formality” was defined in terms of social security provisions like EPFO/ESIC, the formal sector payroll was found to be about 31% of the non- agricultural work force. When “formality” was defined in terms of being part of the GST net, such formal sector payroll share was found to be 53%. 13. The foreign exchange reserves grew by 14.1% on a year-on-year basis from the end of Dec 2016 to end of Dec 2017. The forex reserves as per 2016-17 were estimated at USD 370 billion. It grew to USD 409.4 billion in 2017-18. 14. Substantial avoidable litigation in tax arena which government action could reduce: The survey points out that tax departments in India have contested in several tax disputes but with a low success rate of below 30%. About 66% of pending cases account for only 1.8% of value at stake. It further states that 0.2% of cases account for 56% of the value at stake. That means if Rs 1000cr of tax dispute are there, then only 0.2% of case for Rs 560 cr of tax dispute and about 66% of case for value of nearly 20cr. So there is large no of cases for small value, which have to clear immediately. 15. ‘Gender and Son Meta-Preference:The data highlights another seemingly known fact that Indian society exhibits a strong desire for a male child. It points out that most parents continued to have children until they get a desired number of sons. The survey gives details of various scenarios leading to skewed sex ratios and also gave a comparison on sex ratio by birth between India and Indonesia. 16. Extreme weather adversely impacts agricultural yields: The survey captures the footprints of climate change on the Indian territory and the consequent adverse impact on agricultural yields. Extreme temperature increases and deficiency in rainfall have been captured on the Indian map and the geographical changes in agricultural yields are brought out from such data. The impact was found to be twice as large in non-irrigated areas as in irrigated ones. 17. ‘Feminisation’ of agri-sector: The Survey has observed that the growing rural to urban migration by men has led to ‘feminisation’ of the agriculture sector. There has been a substantial rise in the number of women in multiple roles as cultivators, entrepreneurs, and labourers. October 15 to be celebrated Women Farmer's Day every year 1441, Opp. IOCL Petrol Pump, CRPF Square, Bhubaneswar-750015 1 Ph. : (0674) 6556677, 8093556677. Web : www.vanik.org, E-mail : [email protected] DAILY UPDATED CURRENT AFFAIRS – 29.01.2018 TO 31.01.2018 18. The Economic Survey has observed that the quality of hygiene and sanitation had a significant impact on improving the health outcomes. The Swachh Bharat Mission has increased the sanitation coverage in rural India from 39% in 2014 to 76% in January 2018. 19. 'India needs to be a net producer of knowledge': As India emerges as one of the world’s largest economics, it needs to gradually move from being a net consumer of knowledge to becoming a net producer, the Survey has noted. 20. Agriculture, education, and employment will be areas of focus in the medium term, according to the Economic Survey. 21. The main threats to the growth boom projected by the Survey include rising oil prices — an increase of $10 per barrel could hit growth by 0.2-0.3 percentage point. The International Monetary Fund predicts a further rise of 12% in oil prices next fiscal year. 22. Of the top achievements this year, the Survey lists upgrade of India's credit rating by Moody's, and the jump of 30 places into the top 100 in the World Bank's Ease of Doing Business rankings. India 6th wealthiest country: New World Wealth Report According to New World Wealth Report, India was ranked sixth in list of wealthiest countries with total wealth of US $8,230 billion in 2017. Top 10 Wealthiest Countries are United States (1st, total wealth held US $ 64,584 billion), China (2nd, $24,803 billion), Japan (3rd, $19,522 billion), United Kingdom (4th, $9,919 billion), Germany (5th, $9,660 billion). India’s GDP growth fell to 7.1% in 2016-17 from 8.2% in 2015-16: CSO According to Central Statistics Office (CSO) data, in line with the earlier official estimate of the country’s GDP growth in the last fiscal, India’s gross domestic product during 2016-17 grew at 7.1 per cent. India slips to 42nd place on EIU Democracy Index; US at 21st India has slipped to 42nd place on an annual Global Democracy Index amid “rise of conservative religious ideologies” and increase in vigilantism and violence against minorities as well as other dissenting voices. While Norway has again topped the list, followed by Iceland and Sweden, compiled by the Economist Intelligence Unit (EIU), India has moved down from 32nd place last year and remains classified among “flawed democracies”. Paytm, AGTech launch mobile gaming platform Gamepind Chinese gaming and entertainment company AGTech Holdings Limited has entered a joint venture with Paytm to launch Gamepind, a mobile gaming platform with social and casual games that include rewards. Gamepind includes casual games, contests, and sports games, combined with a rewarding and engaging winning experience for the end user. Google Forays Into Hyperlocal News Through ‘Bulletin’ App Google has introduced a new app named “Bulletin” that allows anybody to submit stories for and about their communities. This is a free, lightweight app for telling a story by capturing photos, video clips and text right from your phone, published straight to the web. The app is made for contributing hyperlocal stories about your community. NATIONAL Government launches GeM 3.0 • The Ministry of Commerce & Industry has launched third version of the Government e-Marketplace (GeM 3.0) . The earlier version GeM 2.0 was launched as pilot project in August 2016. • GeM is an Online Market platform to facilitate procurement of goods and services by various Ministries and agencies of the Government.
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