Badhta Bharat- Ubharata Bharat

DEMONETISATION

DIGITAL PAYMENT PROMOTION & LESS CASH ECONOMY

  • Mera mobile mera bank mera batua: BHIM app (based on United Payments Interface(UPI)), to promote cashless economy brings payments to people’s phones
  • 125 lakh people have adopted the BHIM app so far. Total transactions in BHIM App is nearly 50 lakhs & amount transacted is Rs. 1407 cr since 30th December, 2016
  • BHP –AADHAR Platform launched by PM on 14th April ,2017 on Ambedkar Jayanti at Nagpur
  • Cash incentives to promote digital payments – Lucky GrahakYojana and Digi DhanVyaparYojana
  • Aadhar enabled Payment system in place to promote less cash economy
  • Target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and Rupay debit cards
  • Provisions being made for sufficient number of PoS Terminals
    • As on 19th March 2017, more than 11 Lakh Point of Sale (PoS) have been deployed against the target of 10 Lakh PoS deployment by banks before 31st March, 2017
  • Payments Regulatory Board to be set up within RBI
  • Digital Jagriti Program
    • More than 2 Crore citizens trained on usage of electronic modes of payments since 2nd December, 2016
    • Supported in on-boarding more than 16 lakh merchants

GST

  • One Nation, One Tax- One Nation-One Market
  • Passed by Parliament
  • To be rolled on July 1,2017
  • 4 Tax Rates- 5%, 12%, 18%, 28%
  • Reduction in overall taxes on goods, estimated to be 25-30%
  • Lead to ease of doing business and increase in tax revenue collections.

Benefits of GST

Decrease in Inflation due to

  • Reduction in Cascading effect of Taxes
  • Overall Reduction in Prices

Ease of Doing Business due to

  • Common National Market
  • Benefits to Small Taxpayers

Decrease in “Black” Transactions due to

  • Self-Regulating on line Tax System
  • Non-Intrusive and transparent Tax System

More informed consumer due to

  • Simplified Tax Regime
  • Reduction in Multiplicity of Taxes

Poorer States to gain due to

  • GST being a destination based Tax
  • Consumer States to benefit the most
  • Abolition of CST

Make in India boost due to

  • Exports to be Zero Rated
  • Protection of Domestic Industry – IGST

ECONOMIC INDICATORS

  • Inflation brought under control. CPI-based inflation declined to 3.65% in February 2017 from7.72% in May 2014.
  • Inflation rate averaged 7.79 percent from 2012 until 2016, reaching an all-time high of 11.16 percent in November 2013 and a record low of 3.69 percent in July 2015
  • Economic Survey: CPI based Inflation likely to be below 5%.
  • Food inflation down to 2.46%; it was 8.88% in May 2014
  • Economy has moved on a high growth path.
  • India’s Current Account Deficit declined from 1.8% in 2014-15 to 1.3% in Q3 2016.
  • High GDP growth rate: 7%+
  • Highest FDI ever: $63 billion
  • Fiscal Deficit in control: 3.2%
  • Current Account Deficit down from 4% in 2014 to almost zero
  • Low inflation: Around 4% from high of 11% in 2014
  • Rupee exchange rate in control

 GDP Growth Rate

  • India has been the brightest star in global economy since the Government came to power, and fear-mongering over demonetization was exposed by Q3 2016-17 growth of 7.1%
Year Growth rate (%)
2012-13 5.48
2013-14 6.54
2014-15 7.18
2015-16 7.93
2016-17 7.11

 GDP PROJECTION BY INTERNATINAL AGENCIES (2016-17 vs. 2017-18)

GDP (Growth Rate) Projections by International Agencies (2016 vs 2017P)

International Agencies Report 2016 2017P
IMF World Economic Outlook (October, 2017) 7.1% 6.7%
OECD India – Economic forecast, 2017 7.1% 7.3%
World Bank Global Economic Prospects, June 2017 6.8% 7.2%
UN World Economic Situation and Prospects, update as of mid-2017 7.0% 7.3%
ADB Asian Development Outlook, September 2017 7.1% 7.0%
Moody’s
Fitch
CSO Press Release, 2017 2016-17 (7.1%)

*P = Projection

FDI (COMMERCE)

  • Foreign Direct Investment goes up by 48% since NDA Govt. took over
Year Amount of FDI (US$ Billion)
2013-14 36.4
2014-15 44.9
2015-16 53.4
2016-17 (till December, 2016) 47.2
  • India world’s most attractive investment destination
  • Will create jobs and benefit domestic consumers through lower prices and superior technology.

FOREX RESERVES (Commerce)

  • India’s Highest ever FOREX Reserves in 2015
  • Macroeconomic stability ensured with Forex Reserves $364 Billion (as on March 23,2017) compared to $312 Billion (May end, 2014)
  • Lowest point of Forex Reserves in this decade reached in September 2013 – $274 Billion, threatening macroeconomic stability

BUDGETARY REFORMS (Finance)

3 Major Reforms in Budget 2017-18.

  • Presentation of Budget advanced to 1st February to enable the Ministries to operationalize all activities from the commencement of the financial year.
  • Merger of Railways Budget with General Budget to bring Railways to the centre stage of Government’s Fiscal Policy and
  • Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries

EASE OF DOING BUSINESS (DIPP)

  • Improved rank in Ease of Doing Business Ranking
  • Self-certification
  • Simplification of rules
  • Scrapping of about 1200 obsolete laws
  • Most of the regulatory processes put online.
  • 60% of defence Items out of the licensing process
  • Real Estate Bill passed to protect the interest of buyers and bring more transparency to the housing sector.
  • Gas pooling for power and fertilizer sectors.

REVAMPING & RESTRUCTURING OF BANKS

  • Merger of 5 State Bank subsidiaries into State Bank of India

REAL ESTATE BILL

  • Real Estate Bill passed to protect the interest of buyers and bring more transparency to the housing sector.

SOVERIGN GOLD BONDS

  • To provide a new financial instrument of investment to public at large and reduce the demand for physical gold. 3986 kg of Gold bonds worth Rs. 1044 crore subscribed.

INDIAN GOLD COIN SCHEME

  • Boost to indigenous gold coin scheme launched under Make in India                            

LABOUR REFORMS

ShramevJayate

  • ShramSuvidha portal: unique labour identification number allocated, online registration of establishments.
  • Unique Labour Identification number allocated to give permanent identity to labourers. EPFO issued 6.57 crores UAN out of which 2.5 crore have been activated through mobile phones.
  • Amendments in Labour laws to exempt certain industries from returns, labour registration, inspection etc.
  • Amendment in factories Act, 1948 to allow for: night shift for women, increased hours of overtime
  • Apprentices Act, 1961 modified to ensure more apprentices. Stipend linked to minimum wages.
  • Facility of Common online return in one year
  • Reforms in BIS laws to improve the standards of goods and services
  • National Career Service Project:  bringing employers, trainers and unemployed on single platform, 3.5 Crore aspirants registered till now.

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NDA Government Initiatives : Digital India

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