15.

11 Revised Income Criteria for Poor in government housing Schemes Intra Subsidy Scheme for Poor- 1 lakh loan for urban household dweller. Income Factor is the basic criteria in this regard. The government will give 5% subsidy on interest. This limit will be increased to 5 lakhs as it is not possible to build a house in 1 lakh. 2008 Statistics- 5000 per month- Economically weak section 10,000 per month- LIG (Lower Income Group) Revised 1 lakh per annum- Economically Weaker Section 2 lakh per annum- LIG Rajiv Wrina Yojana has been proposed. It includes both buying the land and building the house. More and more private builders will come forward for this scheme. These people do not have regular income and are mostly from informal sector. Channelization of Credit is just one of the activities to uplift the urban poor. Rajiv Awas Yojana for upgradation of slums is also present. JNURM is building houses for poor. Policy environment needs to improve and private players must come forward in this regard. KPMG study says that 28% of people have houses in India. In situ development of land is needed. Reservation of Land for economically weaker sections in private as well as the public sector is proposed. Industrial Housing is also a good idea. The employer can build houses and give it on rent. 18.76 million Families do not have houses. It includes shortage because of congestion factors such as a married couple not having a separate room.

16.11 Mobile Money Transfer Previously, Money Order was in practice. Mobile Money Transfer- JV between BSNL and Postal Department Over a period of time, people stopped using Money Order Service because of need for speed, lack of transparency at various levels and changing technologies. 85-90% of our population has access to mobile phones. The message under this scheme flows in safe encrypted environment on internet. Post Office is best suited to transfer money because of its Pan India presence. Mobile Phone subscriber can approach Post Office to remit money of up to Rs.10000. There is a special phone for this in the Post Offices. Once the data is entered, it will generate three unique SMSs. A unique code is needed to receive the money and only the intended payee can receive the money. After giving the passcode, the payment is made immediately. In India, the biggest cash dispenser for even the Western Union is the Indian Post Office. In this scheme, the phone is the ID for the person. Online Identity Theft is a big issue in this regard. But, adequate security measures are in place. Agricultural Credit to Farmers All Kisan Credit Cards will be converted into ATM Cards. This will enable them to withdraw money from the banks. This would further simplify the procedure for Farm Credit. It is a priority for the government because of diverse nature of farming and poor resource base of farmers. In India, the larger number of population still depends on agricultural activities. One of the prime objectives of Bank nationalization was to extend credit facilities to farmers. Farmers often get trapped in the moneylenders trap. It even leads to suicides. Kisan Credit Card- It is a special credit facility for the farmers and banks have to give loans in this regard. Banks complained that they have set up infrastructure in villages but not much business is coming. This scheme covers only a small segment of farmers. The land holdings are highly uneven and agriculture is a risky business in our country. Most of our farmers have very small land holdings. Bank Branches have penetrated into villages but it has not been able to serve the needs of the farmers because farmers still rely on the traditional moneylenders.

The collection of debt from farmers is a big issue. More than 50% of the farmers were indebted. Indebtedness is greater among the larger farmers. Most of the farmer suicides occurred before the Kisan Credit Card Scheme. The banks under pressure from the government were trying to decrease their NPAs. 1. We have large number of farmers away from banking network. 2. Even for middle level farmers, the credit is needed not merely for agriculture. It is even used for daughters marriage or buying food. It is not always used for agricultural purposes. For many farmers, agriculture is not a viable proposition. The average farm size is just 1.06 hectares. Most of the Asian countries did not face this problem because the rural population migrated in a huge manner. Thus, the farm size remained significant. Rate of Interest of Banks are very high. But, Kisan Credit Cards reduced the chances of corruption such as bribe to clerks and officers. 60% of population is in agriculture and agriculture contributes only for 15% of GDP. Redeployment of population from agriculture to other sectors is needed. Construction Sector can play a big role in this regard. But, Indian Manufacturing is weak and is facing huge competition from the other Asian countries. The problem is about making a plan for one generation of rural population and the next generation has to be educated for employment in the skilled sector. The main problem is that people want immediate results. Thus, populist measures are taken by the government. The need is to drastically alter the policy at the highest level. Short Term Farming Policy is not helping. MSP becomes effective only when procurement takes place. A higher MSP is not a solution. There is a need to create a network of warehouses. Warehouse Receipt is a Negotiable Instrument and banks will give money for it. The prices wont crash as these negotiable instruments will act as guarantee. The land will not have to be mortgaged. Kisan Credit Card drastically brought down the transaction cost. ATM Card is like placebo or a fake remedy. But, ATM Cards will mean that the physical presence of banks wont be necessary in villages. It will be easier to persuade banks to set up an ATM branch rather than setting up a bank establishment. Advantages 1. They can go at any time of day or holiday. 2. They can withdraw at their own discretion. 17.11

Bank Regulation (Amendment) Bill and Financial Reforms NPAs are reflection of the state of economy of the country. The bill has proposed voting rights relating to shareholding for private sector banks. The government is more concerned about private sector banks. Our banks during subprime crisis did not fail because most of them are nationalized banks. It is normal to expect that the number of frauds will reduce after this bill. After this bill, the RBI also might come out with new banking licenses. With new banks, the burden of public sector banks of financial inclusion will reduce. 1. New bank finances reforms 2. Government measures 3. Legislative reform commission- Amending old bills to bring them in line with the present scenario. This commission is working on the legal framework for financial robustness of the country. RBI has said that unless this bill passes in the parliament, it wont grant new licenses. An important feature of this bill is that it empowers the RBI to supersede the entire board of a bank when the need arises and when the interest of the common investor is in danger. FM said that most public sector banks require infusion of capital. But in absence of clarity of guidelines, this infusion is not happening. It is there in the budget but the fiscal deficit is pretty high right now. But, there is no other way out for public sector banks other than infusing capital. Financial inclusion- Many foreign banks want to enter the Indian market. 1. Home Country Regulation and Host Country Regulation will be important in this regard. In case of conflict, the Host Country Regulation is followed and this jeopardizes Indias interest. 2. Foreign banks want to enter India but Indian banks also have similar sentiments. It is difficult for Indian banks to enter the foreign market. Quid Pro Quo comes into picture. 18.11 International Film Festival, 2012 This is the 43rd Edition of the Film Festival. Remarkable films are being screened in this festival. There are two sections- International Section and Indian Section

Life of Pi- Directed by Ang Lee 19.11 International Year of Co-operatives Co-operatives have played a major role in the development of our economy. Various programs are being organized in this regard. NCUI- National Co-operatives Union of India NAFAD A corporation only has the profit motive but the co-operative has more responsibility towards the society. All the members in the co-operative have equal voting rights. NAFAD plays an important role in fixing support prices for oilseeds and cotton. Government of India declares MSP for 26 oilseeds and pulses. NAFAD through co-operatives and NGOs supports farmers and purchase commodities at MSP. It is an apex body having 42 members. PSS- Price Support Scheme NAFAD keeps stocks for some time and sells it subsequently. Operation Flood model (Amul) has been the most successful model in this regard. Development of co-operatives differs from sector to sector and place to place. There are various societies and co-operatives which are functioning well. Latest constitutional amendment for infusing fundamental rights in the co-operatives NAFAD does not have any equity from government of India but government provides subsidy. Co-operatives have wide penetration in the deepest corners of our democracy. Micro finance and SHGs are not functioning that well. Farmers condition is very vulnerable in our country. Thus, government support is required in this regard. In some states, self-help co-operatives act has been enacted. After liberalization, there is a lot of focus on the free market economy.

Collective farming can do a lot of wonders for the farmers. But, the government has to keep an eye in this regard. Landed class is exploiting the farmers. Land reforms and consolidation of land holdings is needed.

Increasing problem of Diabetes World Diabetes Day- 14th November 35 Crore people are suffering from diabetes all over the world. Type I diabetes- It is found in children. Type II diabetes- Incidence in both children and adults 20.11 India and the ASEAN Trade- 80 Billion Dollars plus 30 Billion dollar jump in one year between 10 ASEAN countries and India Trade in Services in Trade, Product Services, ITeS, Biotechnology and cutting edge technology ASEAN has invested 60 billion dollars in India and India has also invested a similar amount in ASEAN countries 16+2 Member Agreement FTA has given framework for expanding trade relations India also has multilateral and bilateral trade agreements with various countries American interest in Asia is going to increase in the future An economic bloc might emerge between the 16+2 countries South China Sea issue (Vietnam, Philippines etc. v. China) and East China issue are not yet solved India could enter into a Joint Exploration with various ASEAN countries separately Economic importance of ASEAN cannot be ignored by India India needs to enter into agreements in Services and Investment with ASEAN

DMRC Project has crossed 90 Billion Dollars Singapore is the largest investor in India and Indias largest trading partner in the Asia region Balancing India-China Bilateral Trade 2013- 100 Billion Dollar mark will be crossed China is Indias largest trading partner 1. Macro level- Reason for decline is the low growth in both India and China. Manufacturing in China has decreased. In India, there have been problems regarding iron mining and continuing uncertainty in the power and telecom sector. 2. Micro level- Trade balance was always lopsided. India is pressurizing China to accept its manufacturing period. India is planning to invest around a trillion dollars in upgrading the infrastructure. Thus, we are inviting all types of FDIs in this regard. There is a circulation of capital which includes collective investments. It is not just about import and export. But, now the emphasis is more on economic collaboration. A lot of new sectors are opening up. Items India can export to China- For the next 2 years, India-China trade will only grow. India should take advantage of the expansion of domestic sector in China. We can send our banks to China. FDI in Retail will cause a big boost in India-China relations because most of the goods are going to be Chinese goods. China is a big investor in US treasury funds (1 trillion dollar). China has the capacity to swing the dollar price. BRICS has been negotiating on broadening the financial relations. Too much Chinese intervention in Indian market might pose a risk to Indias interests. There are concerns about Chinese Telecom Products. There are different levels of Chinese products, the best quality products are costly whereas the cheaper products just envelope the market. China keeps devaluing its currency There are many Chinese Banking agreements with India but it should be reciprocal. SBI and other banks should also be given a chance to show their presence in China. BRICS wants some new form of currency for facilitating trade. It will open new arena for trade. Iron Ore exports have declined. But, pharmaceutical goods and IT services of India are better than the Chinese goods and services in this regard.

22.11 Curbing Black Money Delhi Government Hiked Circle Rates for Properties. The value of these lands for stamp duty will go up. The stamp duty will also go up. Circle Rate is the official floor which the government keeps in wisdom. No property can be kept at a lower rate than the circle rate. The stamp duty has to be given at the circle rate or higher. The problem is that actual registration is under declared. It increases the flow of black money. Land deals contribute for 40% for black money transactions. There is a need to tap large financial transaction through various banking mechanisms. There are terror networks playing in the land markets. The need is for greater percolation of plastic money in our markets. Transactions of suspicious nature must be immediately identified and plugged. This is very important for the safety of our economy. Why should someone pay a price more than the market price for buying land? The banks are also incentivizing such deals. The bank is getting an asset which is of much higher value than the mortgage price. Decentralization of the information is needed. Stamp Duty not only fulfils the revenue needs but it also provides for various kinds of infrastructures that the government provides us. Agriculture Government has taken initiative in this regard. A second green revolution is needed for addressing the problem of food security. Eastern UP, Bihar, Bengal and North East have big scope for agriculture. These states will be given focus for the second green revolution. 257 Million Tonnes Food grains were produced in 2011. India needs to emerge as the biggest exporter of food grains for giving proper price to farmers for their labour and contribution. Universal Food Subsidy- It is difficult to maintain this subsidy for a long time. Loans meant for farmers are not reaching them. A lot of farmers committed suicides. It is happening because the farmer is dependent on the crop production. If crop production is low,

they suffer badly. There is a need to divert farmers from depending on one form of crop or agriculture. They can go for animal husbandry and other such things. FDI in retail is necessary because during past we have not been able to build our infrastructure properly. FDI will lead to investing in infrastructure by foreign companies (mandatory). This will lead to creation of cold storage chains and food processing units. Crop diversification is being promoted by the government. Government is giving seeds and other types of assistance to farmers to diversify their crop base. Horticulture is emphasized a lot in the North Eastern and hilly areas. India is the second largest producer of vegetables and fruits. If we plan properly, it will be good for the country. Financial help is given by the government to private people and farmers to build storage and godowns. Most of the food produce is rotting because of lack of cold storage chains. But, large number of investments is coming in this regard and the situation is likely to improve. We might even have a Food processing ministry in the future. 23.11 Modernization and Computerization of Post Offices 4900 Crores- Program for improving Post Office Delivery System It will cover all the 1.55 lakhs Post Offices in the country. It will promote data centres, deployment of personnel in rural post offices. Benefits for the consumers 1. Faster and more reliable services. 2. Postal Saving Account scheme has more than 24 Crore subscribers. 3. Postal department also covers MGNREGS wages. Modernization will lead to speedy payments. 4. Rural Post Offices have completely manual operational capabilities. This will change with modernization. 5. All the articles of mail, from booking till delivery, can be tracked by the customers via internet. 25,500 Departmental Post Offices are in urban areas. 24,000 of them have been computerized.

Project Aaroh-To change the look and feel of the Post offices. - Monetary infusion for Faster Delivery System 130,000 Rural Post Offices in the country and modernization will be uniform for all the states. Banking and Insurance, Networking etc. will be carried on in the modernization phase. Electronic substitution of the Communication sector has taken place. The mail articles are decreasing in most of the countries. After this project, when all the offices will be networked, the businesses that have gone to the courier companies will come back to the Post Offices. The number of post offices will also increase in the rural and semi-urban areas. Rationalization of man power and resources is needed. Balancing India-China Trade Relations The trade deficit between India and China is heavily in favour of China. China has become a huge manufacturing hub. It provides huge subsidies. But gradually, India is making up in some sector. The problem is that it is restricted to only some sectors. There is a market access problem in China. Also, the areas of our core competency are not allowed to nurture in China. Visa and permits are not being granted in this regard. Chinese should look at other countries with greater sensitivity and reciprocity. China is also a member of WTO. China protects its industries too much and manipulates its currency very often. We need to boost our manufacturing sector. WTO, to a limited extent, has been able to curb this Chinese protectionism. We have excelled only in the IT sector and that too in the software sector only. China has labour problems and their political system is very shady. India can compete with China in the manufacturing sector in the long run. But, lot needs to be done for that. We will see more FDI from China in the infrastructure sector.

FDI in retail will benefit China because most of cheap goods will be taken from China. India has a better pharmaceutical, biotech and IT sector than China. Chinese market has a lot of levels. It has control over the higher priced goods as well as the lower priced goods. BRICS might form its own local currency. China has huge economic zones but only a certain geographical area of China has benefitted from it. China and India have large agrarian population. We must exchange our experiences with each other. Trade is a benign factor in Sino-Indian factors. Our vested interests are developing in the two way trade that is taking place between both the countries. India can convert itself into a global manufacturing hub. But, it is not the only way. China has become a net exporter in the Defence Sector. We need to bridge the technological gap. BRICS has a major potential to convert itself into a leading Trade Bloc.