CSE MAINS

ECONOMICS :

Hyderabad keeps business-friendly tag

Details :
What is the News?

Hyderabad has maintained its record in the ease of doing business by securing first place in two
parameters enforcing contracts and resolving insolvency in the latest report released by the World Bank.

The World Bank report measuring business regulations, has surveyed 17 cities across the country in
terms of starting a business, dealing with construction permits, registering property, paying taxes, trading across
borders, enforcing contracts and resolving insolvency.

The City of Pearls was ranked number two, next to Ludhiana, in terms of overall ease of doing business.
Indias ranking in the World Banks annual Doing Business survey:

India moved up only one position in the IFC ease of doing business rankings.

The Doing Business 2017 report showed that India was placed 130th among 190 countries

Out of 10 parameters, Indias ranking this year improved in two, remained unchanged in three and
worsened in five.

The government was expecting at least a 10-spot jump on the back of several ease of doing business
measures taken in the past two years.
Our Report Card:

This is the first time Indias absolute score, that measures the gap between India and the global best
practice, has improved for two consecutive yearsto 55.27 in 2017 from 53.93 last year. Additionally, Indias
distance to frontier score improved on 6 out of 10 indicators, showing India is increasingly progressing towards
best practice.
India made the sharpest jump in getting electricity, with its rank jumping 44 spots to 26.
India made getting electricity faster and cheaper by streamlining the process of getting a new commercial
electricity connection.

Indias rank also improved in the enforcing contracts parameter by 6 spots to 172.

India made enforcing contracts easier by creating dedicated divisions to resolve commercial cases.

Though Indias ranking in paying taxes deteriorated by 15 spots to 172, the World Bank said India made
paying taxes easier by introducing an electronic system for paying employee state insurance contributions.

Indias ranking in trading across borders also fell by 10 spots to 143 though the World Bank recognized
Indias reforms in making imports and exports easier through the launch of the ICEGATE portal and simplifying
border and documentary procedures.

CSE MAINS

India moved up nine spots in the criteria of starting a business to 155 in 2016 from 164 last year and its
ranking for dealing with construction permits also moved up one spot to 183.

In segments such as protecting minority investors, registering property, trading across borders, enforcing
contracts and resolving insolvency, Indias rankings remained the same as last year.

However, in the area of protecting minority interests of shareholders, India is ranked at eight, its best
ranking across all parameters.

The government has announced its plans to resolve insolvency issues and enforcing contracts through
legislations such as the bankruptcy law and public contracts dispute resolution bill areas where it is
languishing in the overall Ease of Doing Business rankings.
What Next?

The World Bank has not recognized as many as 12 reform measures carried out by the government.

Government of India says it will continue its engagement with the World Bank and address their concerns
to include these reforms in next years doing business report.

Also once the government implements the Insolvency and Bankruptcy Code by the year end and the
goods and services tax (GST) comes into force by April next year, Indias ranking will significantly improve.

World Bank has said taht the experience of implementing reforms based on doing business data has
demonstrated to the government the significance of establishing clear stakeholder feedback mechanisms to
close the gaps between policy formulation and implementation

It, however, recognized reforms by India in four areas: getting electricity, enforcing contracts, paying
taxes and trading across borders.

The World Bank, does not take into account government notifications of reforms, basing the rankings
instead on field surveys and interviews with corporate lawyers and company executives.

Therefore the government will soon appoint an external agency and launch a portal for round-the-clock
feedback from users on the policy steps launched by the government.

China Q3 GDP grows 6.7 percent as expected as construction booms, debt rises
Details :
What is the News?

China recorded a steady GDP growth rate of 6.7 per cent in the third quarter of this year, thanks to the
real estate market and government-backed spending and lending that propped up the worlds second-largest
economy which witnessed continuous slowdown.

The growth figure of 6.7 per cent remained within the governments targeted range of GDP growth
between 6.5 and 7 per cent for 2016.

Chinas GDP expanded 6.7 per cent year on year in the first three quarters of 2016 to reach 52.997
trillion yuan (USD 7.87 trillion).

Key implications on global growth:

CSE MAINS

First, and most obvious, continued deceleration of Chinese growth would have a much greater impact on
an otherwise weak global economy than would be the case if the world were growing at something closer to its
longer-term trend of 3.6 percent.

Excluding China, world GDP growth would be about 1.9 percent in 2016 - below the 2.5 percent
threshold commonly associated with global recessions.

Every decline in Chinese GDP growth of one percentage point knocks close to 0.2 percentage points
directly off world GDP; including the spillover effects of foreign trade, the total global growth impact would be
around 0.3 percentage points.

Defining a Chinese hard landing as a halving of the current 6.7 percent growth rate, the combined direct
and indirect effects of such an outcome would consequently knock about one percentage point off overall global
growth.

In such a scenario, there is no way the world could avoid another full-blown recession.
China is the worlds second-largest economy and the second-biggest importer of both goods and
commercial services.

It also plays an key role as a buyer of oil and other commodities.

Its slowdown in growth has been a factor in the decline in prices of those goods.
Other Information:

Consider the most recent GDP numbers from China and India, China says its economy grew by a
respectable 6.7% in the first three months of 2016, while India reported a remarkable 7.9% expansion in the
same period.
Together, the countries account for 16% of world GDP, or about $13 trillion.

========================================================
======================================

Centre to widen social security law dialogue

Details :
What is the News?

The Centre plans to widen consultations over a proposed social security code for workers, after a series
of labour law reform proposals ran into opposition from trade unions.

The labour ministry plans to hold several meetings with State governments to discuss the proposed law
on social security for organised and unorganised workers beginning early next month.

The labour ministry now plans a single law on social security for workers that may combine and alter
various laws such as the Employees Provident Fund & Miscellaneous Provision Act, 1952, the Employees State

CSE MAINS
Insurance Act, 1948, the Employees Compensation Act, 1921, the Payment of Gratuity Act, 1972 and the
Maternity Benefit Act, 1961.
Why Do We Need Social Security?

Social Security protects not just the subscriber but also his/her entire family by giving benefit packages in
financial security and health care.

Social Security schemes are designed to guarantee at least long-term sustenance to families when the
earning member retires, dies or suffers a disability.

Thus the main strength of the Social Security system is that it acts as a facilitator - it helps people to plan
their own future through insurance and assistance.

The success of Social Security schemes however requires the active support and involvement of
employees and employers.

A worker/employee, are a source of Social Security protection for himself and his family.
Workforce In India:

The estimated workforce of the country is 47.41 crore of which 82.7 per cent is in the unorganised sector,
as per the National Sample Survey Office (NSSO) survey result for 2011-12.

As per the NSSO survey for 2004-05, the total employment in both organised and unorganised sector in
the country was of the order of 45.9 crore out of which around 43.30 crore (94.34 per cent) was in the
unorganised sector.

========================================================
=======================================

Centre backs low GST rate, EU FTA to spur textiles jobs

Details :
India's Textile sector:

To boost job creation, the government will make the textile sector more competitive by pursuing a lower
Goods and Services Tax rate.

China is moving out of global markets due to increase in labour costs and higher domestic demand.

Its the right time for India to occupy the space, especially in countries where China was exporting.

India is even willing to allow automobile and wine imports from the European Union in return for market
access for Indian textile.
One crore rupees investment in most sectors creates ten to twelve jobs, but in textiles it creates 100
jobs.
There is a need to incentivise the sector for its job-generation potential, especially for women who form
70-80 per cent of its workforce.

CSE MAINS

Textile sector also needs to focus on innovation, modernisation and technological advancement.
Other contenders:

Bangladesh, Vietnam, Kenya and Ethiopia is poised to overtake India on garment exports as they have
competitive advantage that arises due to these countries getting duty-free access to the EU and U.S. Indian
products attract a 9.5 per cent duty in the EU.

The European Union lay huge importance to environmental compliances.

In this regard India stands to gain over Bangladesh and is expecting to make a better deal.
Free Trade Agreement:

It is treaty between two or more countries to establish free trade area where commerce in goods and
services can be conducted across their common borders without tariffs or hindrances.

The World Trade Organization (WTO) is the international body that helps negotiate and regulates free
trade agreements.
Advantages of Free Trade Agreements:
Free trade agreements are designed to increase trade between two countries, which has its advantages:
1.Increased economic growth.
2.More dynamic business climate.
3.Lower government spending.
4.Foreign direct investment.
5.Expertise.
6.Technology transfer.
Disadvantages of Free Trade Agreements:
1.Increased jobs outsourcing
2.Theft of intellectual property.
3.Crowd out domestic industries.

========================================================
=================================

Treaty hurdle no bar for U.S. investments

Details :
U.S. companies are finding novel ways to address investment protection and dispute-related issues with their
Indian counterparts as talks remain in a limbo over a proposed Bilateral Investment Treaty (BIT). At the boardlevel of a company, the first question that gets asked is about the dispute settlement mechanism for protection of
the companys rights when it proposes investments worth billions of dollars in India, and the BIT includes the way
to solve the disputes. However, till date India and USA have not signed the BIT.
What is Bilateral Investment Treaty (BIT)?

CSE MAINS

It provides appropriate protection to foreign investors in India and Indian investors in the foreign country,
in the light of relevant international precedents and practices, while maintaining a balance between the investor's
rights and the Government obligations.

A BIT increases the comfort level and boosts the confidence of investors by assuring a level playing field
and non-discrimination in all matters while providing for an independent forum for dispute settlement by
arbitration.

In turn, BITs help project India as a preferred foreign direct investment (FDI) destination as well as
protect outbound Indian FDI.
India's Bilateral Investment Treaty (BIT):

The first BIT was signed by India on March 14, 1994.

Since then, till date, the Government of India has signed BITs with 83 countries.

These BITs were largely negotiated on the basis of the Indian Model BIT of 1993.

Considerable socio-economic changes have taken place since 1993 when the Model text of BIT was first
approved.

The nature of government regulation concerning foreign investment has evolved.

A wide variety of laws now regulate investments both at the central and the state levels.

During the last few years, significant changes have occurred globally regarding BITs, in general, and
investor-state dispute resolution mechanism in particular.

Therefore the Union government on December 2015 has given its approval for the revised Model Text for
the Indian Bilateral Investment Treaty.

The essential features of Indian new BIT include an "enterprise" based definition of investment

Non-discriminatory treatment through due process.

Also a refined Investor State Dispute Settlement (ISDS) provision requiring investors to exhaust local
remedies before commencing international arbitration.
And limiting the power of the tribunal to awarding monetary compensation alone.

Indias model BIT text requiring that disputes be exhausted in local jurisdictions before alternative
investor-state dispute mechanisms can be initiated. This is the main concern for USA.

Citing judicial delays in India, investors from the developed world have been demanding flexibility in
Indias BITs that will allow them to take disputes to international arbitration tribunals without waiting to exhaust
remedies available in India.
How the companies of India & USA address investment protection and dispute-related issues?

CSE MAINS

Though U.S. and India had held the first round of BIT negotiations in August 2009, talks have not
progressed much.

Companies are finding innovative ways to deal with dispute resolution, for instance, the Gujarat
International Finance Tec-City (GIFT City) Indias first International Financial Services Centre (IFSC) has
offered American investors the option of using the Singapore arbitration model to solve disputes.

U.S. investors are also signing up with Indian firms to use London and Brussels as seats of arbitration.

So, the absence of an India-US BIT is not an issue from an investors perspective.

Foreign direct investment from India in the U.S. in 2015 was $9.25 billion, while U.S. investments in India
were around $28.34 billion.

========================================================
=================================

RBI panel moots easing bank branch norms

Details :
What is the news?

A panel set up by the Reserve Bank of India (RBI) has proposed to relax the requirements that a bank
branch has to follow, like a building, number of employees etc.
This is aimed at promoting financial inclusion.
Information:

Financial Inclusion means including more and more people in the financial system, like access to banks
through bank accounts and loans so that they can also save and borrow from banks.
Government and RBI are always looking to promote financial inclusion.
One of the ways is to open up bank branches in areas where there are no traditional bank branches (Unbanked rural centres), that is, typically far off rural and backward areas.

Problem is that such branches are usually loss-making operations and banks are reluctant.

The RBI had set up a panel to decide on what exactly qualifies as a bank branch.

The move is aimed to provide more flexibility to banks as new technology enables them to provide most
banking services even without a traditional branch.

For this, the RBI is focusing on the bank branch as a fixed outlet with regular timings, rather than all the
traditional infrastructure that needs to exist at a branch.
Panel recommendations:

Bank branches (including those manned by business correspondents) that provide minimum 4 hours of
service for 5 days a week, should be allowed to be treated as a full-service branch.

CSE MAINS

Any other fixed point unit of the bank which can not work for 4 hours for 5 days a week would be
considered a part-time banking outlet

A part-time banking outlet opened in any centre will be counted in for computing requirement of having
25 per cent branches in rural areas.

The move will significantly reduce costs for a bank while for opening branches in un-banked rural
centres.
Conclusion:

This will help financial inclusion by taking a more forward looking idea of bank as an outlet that delivers
services than an outlet with some fixed infrastructure.

Banks, even without traditional branches, can use the technology to offer services in areas that so far
had no access.

========================================================
============================

Private consumption to rise on better monsoon

Details :
What is the news?

Monsoon rains are expected to drive private consumption to 8.3 percent (estimated figure).

After three years of deficient monsoon, rains this year have been sufficient, not to impact the agriculture

sector.
Few areas have witnessed rain deficiency this year. But most of these areas are either well irrigated or
not important agriculturally.

So, they are less likely to be affected by the deficiency.

With good monsoon there is replenishment of the reservoirs augurs well for the rabi season.
Impact of Monsoon on private consumption:

India is predominantly a agriculture based economy and is closely linked to monsoon rains because of its
water resources.

The agriculture sector contributes to 14% of India's GDP and any variation in distribution of monsoon
have direct impact on agriculture output which in turns leads to inflation eventually affecting consumer
expenditure.
Other factors leading to rise in consumption are:

The revenue and fiscal deficits are contained within the targets, attracting the investors towards Indian
economy.

CSE MAINS

Consumption momentum has been generated by increase in higher pay for public sector employees.

Implementation of 7th pay commission.

Passage of Goods and Services tax.

Increased investment on infrastructure.

Hike in defence pension under One Rank One Pension scheme.

========================================================
===============================

Joblessness rises to 5-year high

Details :
Jobless economic growth continues to haunt India's youth, with the countrys unemployment rate rising to a fiveyear high of five per cent in 2015-16, according to the latest annual household survey on employment conducted
by Labour Bureau. Indias economy grew 7.1 per cent in the first quarter of 2015-16, slowing from 7.9 per cent a
year earlier. The countrys unemployment rate, as measured by the Bureau, stood at 4.9 per cent in 2013-14, 4.7
per cent in 2012-13 and 3.8 per cent in 2011-12.
Also recently, the World Trade Organization has cut 2016 world trade growth forecast to 1.7%
These Facts are important for Paper-III 'Development and Employment' section of your Main Syllabus.
Survey findings:

Female job seekers were the worst hit as the pace of unemployment rose sharply to 8.7 per cent in
2015-16 compared to 7.7 per cent in 2013-14, data from the Fifth Annual Employment-Unemployment Survey
showed.

While unemployment rate in rural areas rose to 5.1 per cent in 2015-16 from 4.7 per cent in 2013-14, it
declined to 4.9 per cent from 5.5 per cent in urban areas during the same period.

The annual survey also showed that 47.8 per cent of the surveyed population was reported to be
employed in 2015-16 compared with 49.9 per cent (also known as worker population ratio) two years earlier
when the previous survey was conducted by the Labour Bureau, under the Ministry of Labour and Employment.

The survey showed a decline in the proportion of self-employed and salaried workers and a rise in
contractual employment.

The fact that both self-employment and government programme jobs are dipping is disturbing, showing
unemployment rate is high.

Graduates and post-graduates have cited non-availability of jobs that matched their education or skill and
experience, as the main reason for unemployment.
WTO cuts 2016 world trade growth forecast to 1.7%

Global trade volumes are set to grow by just 1.7 per cent this year, the first time in 15 years that
international commerce has grown more slowly than the world economy, the World Trade Organization (WTO)
said on 27th September.

CSE MAINS

The forecast, much lower than the WTO's previous estimate of 2.8 per cent in April, reflects a slowdown
in China and Brazil and also decelerating imports in the United States.

The WTO also expects slower 2017 trade growth than its previous forecast, with a rise of 1.8-3.1 per cent
rather than the 3.6 per cent it had estimated in April.

========================================================
================================

GST council sets exemption threshold for tax at Rs.20 lakh

Details :
The Goods & Services Tax (GST) Council has decided that businesses in the north-eastern and hill states with
annual turnover below Rs.10 lakh would be out of the GST net, while the threshold for the exemption in the rest
of India would be an annual turnover of Rs.20 lakh.
Outcome of the GST council's first meeting:

For GST, the exemption threshold is fixed at Rs.20 lakh, the Councils Chairman and Union Finance
Minister said after the panels first meeting.

So those with a turnover of below Rs.20 lakh annually will be exempted from GST.

With the north-east States, the exemption threshold is Rs.10 lakh.

The Constitutional Amendment paving the way for the GST has a provision to accord special status to
the north-eastern and hill states.

The Council had also reached consensus on another contentious issue, that of administrative control
over indirect tax assessees.

States would have sole jurisdiction over assessees (currently in the Value Added Tax (VAT) net at
present) having a turnover of Rs.1.5 crore or less, while the administrative control of businesses with a turnover
exceeding that limit would be jointly with the central and state governments.

The Council also decided that the existing 11 lakh service tax assessees will continue to be under the
jurisdiction of the Centre.

Since the GST will allow the States to also tax services, over time the revenue officials in the States will
be trained after which they will begin assessing assessees in the services sector.

The compensation that the Centre would pay to the States for losses of revenue because of the transition
to the new regime would be routinely, quarterly or bi-monthly.

The Council agreed to settle for 2015-16 as the base year for calculating the compensation.

========================================================
=================================

EU may re-engage with India on free trade talks

Details :

CSE MAINS
European Union (EU) hopes to soon re-engage with India on negotiations regarding the proposed Free Trade
Agreement (FTA), Tomasz Kozlowski, Ambassador of the EU to India, said. India and the EU first started
negotiations in 2007 on an FTA to cover trade in goods, services, intellectual property and foreign investment.
However, 13 rounds of negotiations have not yielded a treaty to regulate trade and investment between the two
sides.
Here are the Issues which Stand in the Way of India-EU FTA
Trade in Goods

First, in terms of trade in goods, any FTA tries to bring down the tariff rates from the most favoured nation
(MFN) rates.

In fact, one of the major demands of the EU is that India should lower its tariff rates on European
automobiles and wines and spirits.

A lowering of tariffs may well result in greater trade with the EU, but for India this may mean more
imports than exports.

There will be a greater opening in the Indian market for European goods than in the European market for
Indian goods.

EU tariff rates are already quite low and thus, apart from sectors like textiles and fisheries, Indias exports
to the region might not increase significantly if tariffs are cut.

In goods trade, the real issue for India is non-tariff barriers such as sanitary and phytosanitary measures,
and technical barriers to trade.

The EU has been imposing stringent labeling requirements and trademark norms, for instance, which
have dented Indias exports.

About two years ago, Indias export of Alphonso mangoes to the EU suffered due to stringent non-tariff
barriers.
Trade in Services:

Second, in terms of trade in services, for India to benefit from an FTA with the EU, it needs strong
binding promises by the EU on liberalising trade in services especially for the supply of services in what are
known as modes 1 and 4.

Mode 1, as defined in the General Agreement on Trade in Services under the WTO, covers a range of
outsourcing activities such as business, knowledge and legal process outsourcing.

According to one estimate, Europe is a $45 billion potential outsourcing opportunity for Indian IT
vendors.

Thus, a legal commitment by the EU to outsource would immensely help India by creating many jobs.

Mode 4 covers temporary movement of natural persons.

Liberalisation under mode 4 would mean the EU allowing more Indian professionals preferential access
to the European labour market, which could boost remittances from the EU to India.

CSE MAINS

However, given the high unemployment rates in the EU due to economic slowdown, one is not sure to
what extent the EU is willing to make commitments to liberalise trade in services.
The area of intellectual property (IP):

Third, in the area of intellectual property (IP), the major disagreement is regarding IP protection
standards.

The EU is keen that India should adopt stringent IP protection standards even if that means going
beyond the WTO specified standards that all countries, including India and the EU, have multilaterally agreed.

India will not and should not agree to additional protection measures as this could compromise public
health and raise other compelling concerns.

This is a deeply disturbing trend seen in many FTA negotiations, where developed countries shift
negotiations on IP standards from the WTO and World Intellectual Property Organisation to FTAs.
The problem of Indias model BIT:

Indias new model bilateral investment treaty (BIT) is another major contentious issue, especially for
foreign investment.

Stung by foreign investors suing India under different Indian BITs, India adopted a defensive model BIT in
2015, and would hope to use it as the basis to negotiate the investment chapter in the FTA.

The model BIT does not contain an MFN provision, excludes taxation measures, and makes it mandatory
for foreign investors to exhaust domestic judicial and administrative remedies for at least a period of five years
before pursing a claim under international law.

Given the experiences of major European companies such as Vodafone and Cairn, who are battling the
imposition of retrospective taxes by India, the EU is deeply concerned about the protection of its investments in
India.

It is quite unlikely the EU will accept any proposal that might be detrimental to the interests of their
foreign investors.

In fact, these provisions in the Indian model BIT also go against Indian companies who are investors in
the EU.
Therefore India and the EU must adopt a flexible approach, and iron out differences on crucial issues, to
ensure that the India-EU FTA becomes a reality.

========================================================
================================

Domestic consumption to lift GVA growth to 7.7%

Details :
Indias gross value added (GVA) growth rate is set to improve to 7.7 per cent this year, from the 7.2 per cent seen
in FY16, due to higher domestic consumption demand, while consumer price inflation could accelerate to an
average of 5.1 per cent from 4.9 per cent a year earlier, according to Moodys Investors Service and ICRA. The

CSE MAINS
ratings agencies also predict a significant reduction in government spending in the coming months since the first
four months of this financial year have already seen 74 per cent of the whole years budget target being
exhausted.
why global institutions expect India can achieve 7% plus growth rate?
Domestic demand:

Moody's expects India's economy to grow at 7.7% this year, helped by interest rate cuts that will buttress
private sector spending.

India's economy is on a cyclical upswing and forward-looking indicators suggest domestic demand is
gathering momentum, Moody's Analytics has said.
Reforms:

Most global institutions have given thumbs up to Modi government's reforms drive.

"India's growth is expected to strengthen from 7.2 per cent last year to 7.5 per cent this year and next.

Growth will benefit from recent policy reforms, a consequent pickup in investment, and lower oil prices,"
IMF's World Economic Outlook said.

The strong growth in India has already made South Asia the fastest growing region in the world, World
Bank noted.

India's expected growth acceleration, World Bank noted in its twice-yearly South Asia Economic Focus
report, is being "driven by business-oriented reforms and improved investor sentiment" and that growth could
reach 8 per cent in fiscal year 2017-18 on the back of significant acceleration in investment growth.

Moody's feels that the government has taken encouraging steps to reduce regulations.
"The government wants more foreign businesses to invest in India, with a focus on public and private
partnerships, it said. "Foreign investment in India has been weak because of significant red tape and taxes. The
government is taking encouraging steps to reduce these burdensome regulations to entice more foreign
investment," said Moody's.
Lower crude oil prices:

IMF is of the opinion that in many economies softer oil will help reduce inflation and lower external
vulnerability and open room for structural reforms. IMF sees crude prices on average nearly 40 per cent lower on
a year ago in 2015, rising 12 per cent in 2016.

"Lower oil prices will raise real disposable incomes, particularly among poorer households, and help
drive down inflation," IMF said for India, as it called upon countries to press ahead with subsidy reforms.

World Bank said South Asia was the greatest global beneficiary of cheap oil as all countries were net
importers.
Lower external vulnerabilities:

IMF has forecast a stable current account deficit.

CSE MAINS

World Bank, on its part, pegged the current account deficit at well below 2 per cent in the medium term
and noted that India "has a resilient external position" less than two years after the rupee depreciation episode.

Meanwhile, Crisil is of the opinion that India is better prepared to handle any shock from a US Federal
Reserve hike.
Better among Emerging Markets:

In the report titled India's Economy Is On The Mend, But Corporations Remain Wary, Crisil said the
growth prospects "appear brighter", particularly among emerging markets.

The report noted that India is now the fastest growing economy among the BRICS nations (Brazil,
Russia, India, China, and South Africa) and is no longer seen as part of the "fragile five" (Turkey, Indonesia,
Brazil, and South Africa).

========================================================
====================================

MFIs see higher growth in urban India than rural: Report

Details :
Over the last year, microfinance institutions (MFIs) have seen their business grow faster in urban India than in
rural, according to an annual report by Sa-Dhan, the self-regulatory body for MFIs.
In addition, the report finds that these loans are being put to increasingly productive uses with a higher
proportion of them going towards income generation than before. The report also found that 94 per cent of the
loans disbursed in 2015-16 were used for income-generating purposes, up from 80 per cent in the previous year.
What is Microfinance?

Microfinance is the provision of a broad range of financial services such as deposits, loans, payment
services, money transfers and insurance to the poor and low income households and their micro-enterprises.

Microfinance is defined as Financial Services (savings, insurance, fund, credit etc.) provided to poor and
low income clients so as to help them raise their income, thereby improving their standard of living.
Importance of Microfinance:

Micro financing has been successful in taking institutionalized credit to the doorstep of poor and have
made them economically and socially sound.
Poverty Alleviation:- Due to micro finance poor people get employment.
It also helps them to improve their entrepreneurial skills and encourage them to exploit business
opportunities.

Employment increases income level which in turn reduces poverty.

Women Empowerment :-

Now they have greater access to financial and economical resources.

It is a step towards greater security for women.

Normally more than 50% of SHGs are formed by women.

CSE MAINS

Thus microfinance empowers poor women economically and socially.

Economic Growth :- Finance plays a key role in stimulating sustainable economic growth.

Due to microfinance, production of goods and services increases which increases GDP and contributes
to economic growth of the country.

Mobilisation Of Savings :- Microfinance develops saving habits among people.

Now poor people with meagre income can also save and are bankable.

The financial resources generated through savings and micro credit obtained from banks are utilised to
provide loans and advances to its members.

Thus microfinance helps in mobilisation of savings.

Development Of Skills: Micro financing has been a boon to potential rural entrepreneurs.

SHGs encourage its members to set up business units jointly or individually.

They receive training from supporting institutions and learn leadership qualities. Thus micro finance is
indirectly responsible for development of skills.

Mutual Help And Co.operation: Microfinance promotes mutual help and co.operation among
members.

The collective efforts of group promotes economic interest and helps in achieving socio-economic
transition.

Social Welfare: With employment generation the level of income of people increases.

They can now get better education, health, family welfare etc.

Thus micro finance leads to social welfare or betterment of society.

========================================================
=================================

India salaries inch up, Chinese rise 11%

Details :
India has seen a salary growth of just 0.2 per cent since the great recession eight years back (in 2008), while
China recorded the largest real salary growth of 10.6 per cent during the period under review, says a report.
Also the Indian wage growth is the most unequal.
Reasons for unequal wage growth:

The report noted that Indian wage growth is the most unequal, becausePeople at the bottom are 30 per cent worse off in real terms since the start of the recession; whilst
people at the top are 30 per cent better off.

CSE MAINS

Strong wage growth for senior jobs is mostly because of skill shortages for key professional and
managerial roles.

And also the increasing connection to a more globalised pay market at the senior levels a market
where India still pays less than most countries, but is catching up fast.

Regarding the poorer wage growth at the bottom, the report noted that it was more because of an
oversupply of people.

India has made less progress than some other countries in bringing high value jobs to the country.
This has led to poor job growth, therefore an oversupply of unskilled or semiskilled people, and poor
wage growth.
Job Growth in India:

Between 2005 and 2012, Indias GDP growth was 54% but its net job growth was only 3%.

There were only about 15 million net new jobs.

This giant disconnect will worsen in the coming decade.

Assuming 7-8% annual growth, 2025 will see GDP double.

India will add over 80 million net new job seekers.

But at current rates only 30 million net new jobs mostly informal, and low-wage ones will be created.

India should therefore prioritise policies that link GDP growth with job growth.

Recent initiatives like Startup India and Skill India are crucial, in this respect.

========================================================
====================================

Global food retail chains, brands eyeing India: Centre

Details :
Big retail chains and food brands from the U.K., Italy and Brazil are eyeing an entry in the Indian market after the
government opened up foreign investments up to 100 per cent in processing, marketing and retailing of food
made in India, Union Food Processing Minister Harsimrat Kaur Badal said.
Important Facts:

Indias food economy is growing at a faster rate than the economy and our food and grocery market is
the sixth largest in the world.

The average Indian spends about 40% of their wallet on food.

Our retail sector is largely in the unorganised sector, only 2 per cent in the organised sector.

CSE MAINS

The Food Processing ministry has decided to hold a World Food Summit in January 2017 on the
sidelines of the Vibrant Gujarat summit.

The food industry, which is currently valued at US$ 39.71 billion is expected to grow at a Compounded
Annual Growth Rate (CAGR) of 11 per cent to US$65.4 billion by 2018.

The Indian food and grocery market is the worlds sixth largest, with retail contributing 70 per cent of the
sales.
Food has also been one of the largest segments in India's retail sector, which was valued at US$ 490
billion in 2013.
The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 894.98 billion) by 2020.

The Indian food processing industry accounts for 32 per cent of the countrys total food market, one of
the largest industries in India and is ranked fifth in terms of production, consumption, export and expected
growth.

It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of Indias
exports and six per cent of total industrial investment.

Indian food service industry is expected to reach US$ 78 billion by 2018.

According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food
processing sector in India has received around US$ 6.70 billion worth of Foreign Direct Investment (FDI) during
the period April 2000-December 2015.

The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential
to attract as much as US$ 33 billion of investment over the next 10 years and also generate employment of nine
million person-days.

========================================================
====================================

Single budget will save Railways Rs. 10,000 cr.

Details :
Cash-strapped Railways will save about Rs 10,000 crore annually as it will no longer have to pay dividend if the
separate Rail Budget is scrapped, which is likely to happen from next fiscal.
A joint committee, set up to finalize the modalities for the merger of Rail Budget with the General Budget, has
submitted its report to the finance ministry recommending various changes, including waiving off of payment of
dividend by railways though the practice of getting gross budgetary support (GBS) from the exchequer, will
continue.
Background:

The Railways pays about Rs 10,000 crore as dividend a year after getting about Rs 40,000 crore.
The General Budget, to be presented by the finance minister, will also have a separate annexure with
details of plan and non-plan expenditures to be incurred by the national transporter, according to the
recommendations of the joint committee comprising senior officials from railways and finance ministry.

CSE MAINS

The recommendations will be placed before the Cabinet which has to decide on the subject.

Since the railways has already given its consent for the merger, it is now for the Finance Ministry and the
Cabinet have to take a call on the issue.

Earlier this year, a committee headed by NITI Aayog member Bibek Debroy, in a report titled Dispensing
with the Railway Budget, had recommended that the two budgets should be merged to end the 92-year-old
practice.

The report is believed to have suggested ways for dealing with the railways huge financial burden, once
the Rail Budget is merged with Union Budget.

At present, the railways has to bear an additional burden of about Rs 40,000 crore on account of
implementation of the 7th Pay Commission awards, besides an annual outgo of Rs 33,000 crore on subsidies for
passenger service.

The delay in completion of projects resulted in cost overruns of Rs 1.07 lakh crore and huge throwforward of Rs 1.86 lakh crore in respect of 442 ongoing rail projects.

The report is also understood to have addressed the contentious issue of annual dividend payment by
the railways on account of receiving gross budgetary support (GBS).

The railways pays about Rs 10,000 crore a year to the Finance Ministry as dividend for getting the GBS.
Why should the Railway pay dividend?

Railway Minister Suresh Prabhu asked why should the railways pay dividend when it is already "overburdened" with about Rs 60,000 crore worth of public service obligation and increased wage bill due to the latest
pay commission report.
This recommendation of the Standing Committee. I respect it.

But over a period of time we really need to look into why the Railways which is already suffering due to
several other problems also be over-burdened with the responsibility of paying a dividend and also how the main
Budget can actually subsidise or take care of the subsidies which are already there," the Minister said, adding "I
think, we need to look into this issue."

Countering the Minister, K H Muniyappa, senior Congress member and former Minister of State for
Railways, said the railway committee had "unanimously recommended regarding the issue of dividend."

However, he joined Prabhu in saying that the Railways "are running in public interest and for the common
people under certain obligations.

So, they could not pay the dividend.

========================================================
====================================

Regulators have done well in ensuring e-transaction safety

Details :

CSE MAINS
Indian regulators have done a very good job in ensuring safety and security in electronic transactions compared
to other developing countries, according to MasterCard India. It also said that at the moment, only five per cent
of consumption expenditure is at point of sale devices, the rest is all cash. One of the major reasons merchants
prefer to deal in cash is so they can keep these transactions off their books, thus leading to black money. Most of
the electronic transactions today are ATM withdrawals.
Card Payments in India:

The use of electronic channels for accessing banking and payment services is on the rise and is poised
for significant growth in the country.

In the eco-system of electronic / alternate payment mechanisms, card payments are perhaps most
recognizable.

Further, the developments in e-commerce sector have also been significant in encouraging electronic
payments, including card payments (credit/debit), which are gradually gaining significance.

With the implementation of Prime Minister Jan Dhan Yojana (PMJDY), the card issuance under RuPay
network has seen a tremendous growth in a short span of time.

Given the high issuance of debit cards to accounts opened under the PMJDY, with benefits to account
holders linked to usage of their RuPay debit cards, the imperative to ensure greater usage of cards as well as
enhance growth of infrastructure is significant.

Recent announcements of the Government also support and reinforce the migration from cash payments
to promotion of card and other electronic payments.
Issues in Card Payments:

Though there is significant increase in electronic transactions, the growth is not uniform across all
segments of electronic payments nor is it visible at all locations across the country.

Particularly, in the context of cards, while the card base is increasing rapidly, activation or usage rates
are quite low, especially for purchase of goods and services.

Card usage at ATMs, on the other hand, is quite high.

Thus, with the substantial growth in the issuance of the cards, there is an urgent need to ensure quick,
equitable and sustainable growth in card acceptance infrastructure across the country. Further, along with the
measures to increase availability of card acceptance infrastructure it is also essential to ensure that cards
payments are accepted seamlessly for all types of payments irrespective of amounts.

Steps are also need to be taken to educate people about the disadvantages of cash and the benefits of
using electronic transactions.

========================================================
==========================

Jobs elusive even as India clings to fastest-growing economy tag

Details :
Recent government data on Job Creation:

CSE MAINS

The recent government data has showed Indias economic growth slowed to 7.1 per cent in the quarter to
June, a 15-month low.

However, that is faster than other major economies, but not fast enough to create enough new jobs to
absorb all the one million people who join the workforce every month.

A government survey found that job creation fell by more than two-thirds lin 2015.
Analysts estimate that for every percentage point the economy grows, employment now adds just 0.15 of
a percentage point down from 0.39 in 2000.
Why Job creation is important?

Nearly two-thirds of Indias 1.3 billion people are under 35 years old.

This rising demographic bulge will create the largest working-age population in the world.

At the same time China, which has long curbed family size, will age as a society.

Whether this so-called demographic dividend will translate into the kind of economic gains seen in Japan
and Korea, or lead to upheavals, depends on India's ability to generate jobs.

Yet, despite average annual growth of 6.5 per cent between 1991 and 2013, India added less than half
the jobs needed to absorb new job seekers.

========================================================
========================

RIL must pay compensation to Centre for KG Basin gas, not ONGC
Details :
The Justice A.P. Shah Committee report on the ONGC-RIL dispute regarding the KG-D6 basin, submitted to the
Ministry of Petroleum and Natural Gas, has found that both ONGC and RIL had prior knowledge of the continuity
of the gas fields and failed to bring this to the notice of the Directorate General of Hydrocarbons.
What is the issue?

The state-run explorer ONGC had in 2013 claimed that RIL had deliberately drilled wells close to the
common boundary of the blocks and some gas it pumped out was from its adjoining block.

According to the Oil and Natural Gas Corporation of India, RIL's D6-A5, D6-A9 and D6-A13 wells drilled
close to the block boundary may be draining gas from the G-4 field, while the D6-B8 well may be draining gas
from DWN-D-1 field of KG-DWN-98/2 block.

Due to this about 11.1 billion cubic metres of ONGC gas had migrated from its Godavari-PML and KGDWN-98/2 blocks to the contiguous KG-D6 block of RIL between April 1, 2009 and March 31, 2015.

At prevailing prices, the gas was worth about Rs.11,000 crore.

So the government set up in December a one-member panel headed by Ajit Prakash Shah, a former
chief justice of Delhi high court, to determine whether ONGC should be compensated, and by how much.

CSE MAINS

Recommendations of Justice A.P. Shah Committee:

Reliance Industries made "unjust" gains by pumping natural gas that flowed from ONG's adjoining block
but a proper inquiry is needed to ascertain if both companies knew about the connectivity of reservoirs and
chose to conceal the information for years, the panel has ruled.

The panel, said the compensation for this "unjust enrichment" of Reliance must go to the government
because the national exploration company did not own the resource and, curiously, did little to extract it for a very
long time a lapse that merits proper scrutiny.

It said RIL "prima facie" knew about connectivity of the reservoirs of the two companies by 2003 while
ONGC appeared to have had some idea about it in 2007 but did not do anything about it for six years.

The committee believes that the allegations of prior knowledge on the part of both RIL and ONGC must
be enquired into further, with particular emphasis laid upon the failure of both parties to present the information
they had to the DGH (Directorate General of Hydrocarbons) at the time they allegedly obtained the information.

The report said it was "particularly disconcerting" that RIL did not inform the regulator about its appraisal
report of 2003, which appears to show that reservoirs were connected.

It has recommended that the government should introduce proper disclosure norms and penalties for
concealing information.

========================================================
==============================

India to clock 8-10% growth

Details :
Despite registering the slowest growth rate in the last six quarters in April-June period, India has the potential to
sustain 8 to 10 per cent growth rate during the next two to three years, said Arvind Subramanian, Chief
Economic Advisor.
He, however, projected the growth rate with a rider saying, if we continue to do all the things the government is
doing and if world economy picks up a little bit as it did in 2000, then the growth rate would even clock doubledigit in next two to three years.
Dr. Subramanian also said:

China has been growing at 10.5 per cent for last 25 years.

India, since mid-1970 or 1980, has been growing at 6 per cent, which is not bad.

Till 1980, we were growing at 3 per cent which is called Hindu rate of growth.

After that we have grown at significantly higher rate.

But, it is well below the growth rate of China.

Over the next few years, China has to slow down in terms of economic growth.

For India, on the other hand, the process of normalisation is going to involve much faster growth because
we are underperforming.

CSE MAINS

We have now the opportunity to become normal again and become a fast-growing economy.

In this scenario, India would grow at 8 to 10 per cent while Chinas growth rate would come down to
around 6 per cent over next two three years.

Dr. Subramanian batted for one price for one product in the market and expanding the scope of the direct
benefit transfer model for achieving faster growth.

========================================================
==========================

Foreign tourist arrivals to India rise 17.1 per cent in July

Details :
Interesting Facts which can be useful in an Essay or In GS Mains Economics Answers.

The number of foreign tourist arrivals (FTAs) in India rose 17.1 per cent in July 2016 over the same
period a year ago.

Bangladesh accounted for the highest share of tourist arrivals followed by the U.S. and the U.K.,
according to a government statement.

The government earned Rs.14, 319 crores as foreign exchange, stemming from tourist inflows.

The FTAs during July 2016 was 7.36 lakh as compared to 6.28 lakh during the month of July 2015 and
5.69 lakh in July, 2014.

========================================================
===========================

Bad loans cut Union Banks first quarter net profit

Details :
Union Bank of Indias net profit decreased by 68 per cent to Rs.167 crore in the first quarter compared to the
year-earlier period due to higher provisions for bad loans. Gross non-performing asset ratio of the bank rose to
10.16 per cent as for the three-month period ended June.
What is Non Performing Assets?
As per RBI norms, a non performing asset (NPA) is a loan or advance for which the principal or interest payment
remained overdue for a period of 90 days.These assets fail to bring the expected return on the loans or advances
made by the banks.
Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.
1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.
2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a
period of 12 months.

CSE MAINS
3. Loss assets: According to RBI, Loss asset is considered uncollectible and of such little value that its
continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.
In case of Agriculture / Farm Loans; the NPA is defined as under: For short duration crop agriculture loans such
as paddy, Jowar, Bajra etc. if the loan (Principle/ interest) is not paid for two crop seasons, it would be termed as
a NPA. For Long Duration Crops, it would be one crop season.
Difference between Gross NPA and Net NPA:
Gross NPA is the amount which is outstanding in the banks account books, regardless of any interest recorded
and debited. While Net NPA is Gross NPA less interest debited to borrowers account and not recovered or
recognized as income.
Implications of the NPAs on Banks: The most important implication of the NPA is that a bank can neither credit
the income nor debit to loss, unless either recovered or identified as loss. In case of a borrower having multiple
accounts, all accounts would be considered NPA if one account becomes non performing.
What action banks can take?
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act
allow the banks to take legal recourse to recover their dues.
When a borrower makes any default in repayment and his account is classified as NPA; the secured creditor has
to issue notice to the borrower giving him 60 days to pay his dues.
If the dues are not paid, the bank can take possession of the assets and give it on lease or sell it; as per
provisions of the SAFAESI Act.
Is there any provision of reselling on the part of banks?
If a bad loan remains NPA for at least two years, the bank can also resale the same to the Asset Reconstruction
Companies such as Asset Reconstruction Company (India) (ARCIL). Such resale can take place only on Cash
Basis and the purchasing bank/ company would have to keep the accounts for at least 15 months before it sells
to other bank.
They purchase such loans on low amounts and try to recover as much as possible from the defaulters. Their
revenue is difference between the purchased amount and recovered amount.

========================================================
=================

Centre seeks industry inputs on ease of doing business

Details :
The Department of Industrial Policy and Promotion (DIPP) has asked the various stakeholders, including
industry bodies, to submit their inputs on further improving ease of doing business in India. The governments
active pursuit of the new Bankruptcy Code reflects its emphasis on the ease of doing business.
What is Ease of Doing Business?
Definition: Ease of doing business is an index published by the World Bank. It is an aggregate figure with focus
on different parameters used to define the ease of doing business in a country.

CSE MAINS
Description: It is computed by aggregating the distance to frontier scores of different economies. The distance
to frontier score uses the 'regulatory best practices' for doing business as the parameter and benchmark
economies according to that parameter. Indicators for which distance to frontier is computed include construction
permits, registration, getting credit, tax payment mechanism etc. Countries are ranked as per the index.
Indias Rank as per recent World bank Data
According to the World Banks Doing Business Report 2016. India now ranks 130 out of 189 countries in the
ease of doing business, moving up four places from last years adjusted ranking of 134. India has improved its
position on three countsstarting a business, getting construction permits and accessing electricityin the
latest edition of the Ease of Doing Business Index, but its performance was negative with regard to two
parametersaccessing credit and paying taxes.
What is New Bankruptcy Code?
It is a proposed code now going to be a law that aims to ensure time-bound settlement of insolvency, enable
faster turnaround of businesses and create a database of serial defaulters.
What are the Highlights or benefits?

The new code will replace existing bankruptcy laws and cover individuals, companies, limited liability
partnerships and partnership firms. It will amend the Companies Act to deal with corporate insolvency. It will also
help creditors recover loans faster.

The move is also expected to help India move up from its current rank of 130 in the World Banks ease of
doing business index.

The bill proposes the creation of a new class of insolvency professionals that will specialize in helping
sick companies. It also provides for creation of information utilities that will collate all information about debtors to
prevent serial defaulters from misusing the system. The bill proposes to set up the Insolvency and Bankruptcy
Board of India to act as a regulator of these utilities and professionals.

It also proposes to use the existing infrastructure of National Company Law tribunals and debt recovery
tribunals to address corporate insolvency and individual insolvency, respectively.

The bankruptcy code has provisions to address cross-border insolvency through bilateral agreements
with other countries. It also proposes shorter, aggressive time frames for every step in the insolvency process
right from filing a bankruptcy application to the time available for filing claims and appeals in the debt recovery
tribunals, National Company Law Tribunals and courts.

========================================================
=========================

Centre to meet diplomats for boosting food products trade

Details :
India is working very hard to attract foreign direct investment into trading of food products.
Important Facts:

CSE MAINS

On June 20, 2016, India has allowed 100 per cent FDI under government approval route (through
Foreign Investment Promotion Board) for trading, including through e-commerce, of food products manufactured
or produced in India to give a fillip to the food processing sector.

During April 2000-March 2016, the food processing industries attracted FDI worth $6.81 billion (or 2.36
per cent of the overall FDI inflows of $288.5 billion during the same period).
Food processing sector exports are worth around $38 billion (or 2.5 per cent of world exports in the

sector).

Major constraints for the growth of food processing industry:

The absence of adequate infrastructure, particularly rural road connectivity.

Inadequacy of information and marketing linkages.

Lack of electricity supply.

The absence of cold chain systems.

One of the biggest constraints is that this industry is capital intensive.

========================================================
=================================

Young Punjab farmers wilt in agrarian crisis

Details :
A recent study by the Indian Council for Social Science Research of the growing number of farmers suicides in
Punjab has revealed that the agrarian crisis is hitting farmers and labourers below the age of 35 the hardest.
Agrarian distress has led farmers to commit suicide in recent years.
The major causes of the agrarian crisis are:

Unfinished agenda in land reform.

Quantity and quality of water.

No new technology.

No access to institutional credit.

Credit from moneylenders.

Not getting enogh price for their goods.

Cost of production is higher than selling price.

Adverse meteorological factors add to these problems.

What can be done:

CSE MAINS

Distribute ceiling-surplus and waste lands.

Prevent diversion of prime agricultural land and forest to corporate sector for non-agricultural purposes.

Increase institutional credit.

Use self-help group and NGOs to distribute government benefits available for farmers.

Ensure grazing rights and seasonal access to forests to tribals and pastoralists, and access to common
property resources.

Establish a National Land Use Advisory Service, which would have the capacity to link land use
decisions with ecological meteorological and marketing factors on a location and season specific basis.

Set up a mechanism to regulate the sale of agricultural land, based on quantum of land, nature of
proposed use and category of buyer.

Conducting a critical review of the research system in public institutions to make it more effective.

Changing policies relating to pricing of yield and input to avoid waste.

Shifting public investment towards modernisation of surface irrigation works (to facilitate higher yield per
unit of water used) and for watershed development.

========================================================
================================

Lack of trains to blame for track deaths: CAG

Details :
The Comptroller and Auditor General (CAG) in its recent report has blamed the Indian Railways for not providing
adequate train services, that leads to overcrowding and death of passengers in suburban trains.
To solve the problem faced by Indian Railways, the government had constituted a committee under Bibek
Debroy, last year (2015), the committee has given a report on the restructuring of Indian Railways.
Important recommendations of the Committee are:

Setting up an independent regulator as Railway Regulatory Authority of India.

Once the changes of the first five years are implemented, including the resolution of the social costs
issue, the Railway Budget should be phased out.

The report also says that the government should take the entire burden of social cost borne by Railways
by way of subsidy.

The committee has set a five-year timeframe for implementing its recommendations.
In nutshell, the Committee's recommendations are based on three pillars: commercial accounting,
changes in HR and an independent regulator.

Despite hype, only one firm qualified for Startup India

Details :

CSE MAINS

The official figures government tabled in Parliament earlier this week show that the Startup India portal
received a total of 728 applications till Monday (the notification defining startups was published on Feb. 17,
2016).

Of these, it categorised 180 applicants as startups (whose applications were found to be complete), but
found that only 16 applicants had been incorporated after April 1, 2016, the cut off date stipulated in the Finance
Act 2016 for consideration for tax benefits.

========================================================
=========================

Ministry overruled panel to allow contract hiring at FCI

Details :

A workers union has moved the Delhi High Court against a Labour Ministry notification allowing the
Food Corporation of India (FCI) to hire contract workers.

As per the law, the government can grant an exemption from the Contract Labour Act of 1970 to an
establishment only in case of an emergency and only for a fixed period of time.

========================================================
==========================

States to get sops based on Aadhaars DBT platform

Details :

The Centre is considering special incentives for States that take the lead in embracing the Aadhaar-based
direct benefit transfer platform for delivering subsidies to the poor and succeed in saving taxpayer money by
eliminating leakages.

So far, the government has transferred Rs.1.02 lakh crore under 74 central schemes to about 30 crore
beneficiaries through the direct benefit transfer or DBT system, resulting in huge savings, Union Electronics and
Information Technology Minister Ravi Shankar Prasad said.

========================================================
============================