July 28, 2021 – Wednesday Key Developments Parliamentary panel: Stimulus package for economy, MSMEs inadequate; detailed study on MSME losses must Even as the government had announced a stimulus package last year for the economic revival post-Covid, it has been “found to be inadequate as the measures adopted were more of loan offering and long-term measures instead of improving the cash flow to generate demand as immediate relief,” said a report by the department-related Parliamentary Standing Committee on Industry tabled in Rajya Sabha on Tuesday. The report noted that in the process of economic recovery post-first wave of the pandemic, the second wave even more vigorously ripped the economy particularly the MSME Sector. The Committee recommended the government to “immediately come out with a larger economic package aimed at bolstering demand, investment, exports, and employment generation to help the economy, including MSMEs.” The government had last year launched the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) — as part of the Rs 20 lakh crore stimulus package – equivalent to 10 per cent of India’s GDP – to help MSMEs recover from the Covid impact. The scheme’s limit was recently enhanced to Rs 4.5 lakh crore. https://www.financialexpress.com/industry/sme/msme-eodb-parliamentary-panel-stimulus-package-for- economy-msmes-inadequate-detailed-study-on-msme-losses-must/2298770/ Govt seeks extension till January 9 for framing CAA rules: Minister The central government has sought extension till January 9 for framing rules of the Citizenship Amendment Act (CAA), which was passed by Parliament in 2019, Minister of State for Home Affairs Nityanand Rai informed Lok Sabha on Tuesday.He was replying to a question from Congress MP Gaurav Gogoi on whether the government had missed the deadline to frame and notify CAA rules and the steps taken in this context. "The Citizenship (Amendment) Act, 2019 (CAA) has been notified on 12.12.2019 and has come into force w.e.f. 10.01.2020, the minister said."The Committees on Subordinate Legislation, Lok Sabha and Rajya Sabha have been requested to grant further extension of time upto 09.01.2022 to frame the rules under the Citizenship (Amendment) Act, 2019," Rai said. https://www.business-standard.com/article/current-affairs/govt-seeks-extension-till-january-9-for-framing-caa- rules-minister-121072700687_1.html Census 2021 related field activities postponed due to Covid-19: Govt The field activities related to the census 2021 exercise in the country have been postponed due to the COVID-19 pandemic, the government informed Parliament on Tuesday. Minister of State for Home Affairs Nityanand Rai said in a written reply to a query in Lok Sabha that census 2021 was to be conducted under the provisions of the Census Act of 1948 in two phases.They were house listing and housing census during April-September, 2020 and population enumeration during February 9-28, 2021."However, census-related field activities have been postponed till further orders due to COVID-19 pandemic," he said.The minister added that in the census, data is collected on demographic and various socio-economic parameters like education, SC/ST, religion, language, marriage, fertility, disability, occupation and migration of the individuals. https://www.business-standard.com/article/current-affairs/census-2021-related-field-activities-postponed-due- to-covid-19-govt-121072700849_1.html Parliament passes Marine Aids to Navigation Bill Parliament on Tuesday passed a bill that will replace an over nine-decade-old law governing lighthouses and provide a fresh framework to establish and manage vessel traffic services. Rajya Sabha gave its nod to the Marine Aids to Navigation Bill, 2021, which also changes the use of the term marine aids to navigation, amid continuing protests by the opposition members over the Pegasus snooping allegations and other issues. It has already been passed by Lok Sabha on March 22, 2021, in the last session. The Bill will provide for the development, maintenance and management of aids to navigation in India; for training and certification of the operator of aids to navigation, development of its historical, educational and cultural value. https://economictimes.indiatimes.com/news/india/parliament-passes-marine-aids-to-navigation- bill/articleshow/84790024.cms Expert panel recommends nod to SII for phase 2/3 trials of Covovax on children aged 2-17 An expert panel of India's Central Drug Authority on Tuesday recommended granting permission to Serum Institute of India (SII) for conducting phase 2/3 trials of Covovax on children aged 2 to 17 years with certain conditions, official sources said. The trials would cover 920 children, 460 each in the age-group of 12-17 and 2-11 across 10 sites. "The Subject Expert Committee (SEC) on COVID-19 of the Central Drugs Standard Control Organization (CDSCO) deliberated on the revised study protocol application given by SII on Tuesday and recommended granting permission to the firm for conducting phase 2/3 trial of Covovax on children aged 2 to 17 years," a source said. https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/expert-panel-recommends-nod- to-sii-for-phase-2/3-trials-of-covovax-on-children-aged-2-17/articleshow/84795491.cms Economy Higher Q1 tax mop-up shows economy on recovery path: Govt Increased tax collection in the first quarter this fiscal shows that the economy is on the recovery path, Minister of State for Finance Pankaj Chaudhary said on Tuesday.Net direct tax collection in the April-June quarter of the current fiscal is over Rs 2.46 lakh crore, as against more than Rs 1.17 lakh crore during the same period of the previous fiscal. Reasons for increase in the collections include revival of economic activities and positive sentiments among taxpayers during this current financial year, leading to increased income estimates and higher advance tax payments in the first quarter of the FY 2021-22 as compared to the corresponding period of FY 2020-21, he said in a written reply to the Rajya Sabha.Net Indirect Tax (GST and non-GST) revenue collection in the first quarter of FY 2021-22 is Rs 3.11 lakh crore, he said. https://www.business-standard.com/article/economy-policy/higher-q1-tax-mop-up-shows-economy-on-recovery- path-govt-121072700932_1.html Government says 78 foreign companies registered in India last fiscal year As many as 78 foreign companies were registered in the country under the companies law in the last financial year, according to official data. In 2019-20, a total of 124 foreign companies were registered in India. The count was at 118 in 2018-19. The data was provided by Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to Rajya Sabha on Tuesday. "Foreign Company is defined under Section 2 (42) of the Companies Act, 2013 (the Act) as any company or body corporate incorporated outside India which (a) has a place of business in India by itself or through an agent, physically or thorough electronic mode and (b) conducts any business activity in India in any other manner," the minister said. https://economictimes.indiatimes.com/news/economy/policy/government-says-78-foreign-companies-registered- in-india-last-fiscal-year/articleshow/84793671.cms Climate change is most critical challenge before humanity: President President Ram Nath Kovind on Tuesday said that climate change is the most critical challenge before humanity and global warming is making its impact everywhere. Addressing the 19th convocation of the Kashmir University here, he also hoped that the centres for glaciology and Himalayan biodiversity at the varsity will show the way to the world in fighting climate change. "Climate change, as you are aware, is the most critical challenge before humanity in this century. Global warming is making its impact everywhere, but nowhere is it more felt than in the fragile eco-system of the Himalayas," the president said.He said the University of Kashmir has added another feather to its cap with the setting up of two centres that are of high importance. https://www.business-standard.com/article/current-affairs/climate-change-is-most-critical-challenge-before- humanity-president-121072700823_1.html IMF cuts India’s GDP growth forecast to 9.5 pc for FY22 The International Monetary Fund (IMF) on Tuesday cut its economic growth forecast for India to 9.5 per cent for the fiscal year to March 31, 2022 as the onset of a severe second COVID-19 wave cut into recovery momentum. This forecast for 2021-22 is lower than the 12.5 per cent growth in GDP that IMF had projected in April before the second wave took a grip. For 2022-23, IMF expects economic growth of 8.5 per cent, larger than the 6.9 per cent it had projected in April. “Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from that setback,” IMF said in its latest World Economic Outlook (WEO). India’s economy is gradually recovering from a deep contraction in the fiscal year ended March 31, 2021 (7.3 per cent) and a subsequent severe second wave of COVID-19. https://www.financialexpress.com/economy/imf-cuts-indias-gdp-growth-forecast-to-9-5-pc-for-fy22/2298859/ MGNREGA has already used up over half of its annual funds this fiscal More than half of the funds allocated for the Mahatma Gandhi National Rural Employment Guarantee scheme in the current financial year has been utilised in just three-and-a-half months into the fiscal, suggesting the pressure on rural India on generating employment.