Economic Survey Summary Vasavi

ECONOMIC SURVEY 2021-22
[Document subtitle]
Content
Ch. No. Chapter Name Page No
1 State of the Economy 3
2. Fiscal Developments 6
3. External Sector 12
4. Monetary Management and Financial Intermediation 16
5. Price and Inflation 19
6. Sustainable Development and Climate Change 21
7. Regulatory Forbearance: An Emergency Medicine, Not Staple Diet 26
8. Innovation: Trending Up But Needs Thrust, From The Private Sector 29
9. Jay Ho: Ayushman Bharat's Jan Arogya Yojana (Jay) And Health Outcomes 32
10. The Bare Necessities 34

11. Tracking Development through Satellite Images and Cartography 41
2
Economic Survey 2021-2022
3
VASAVI IAS ACADEMY
01 STATE OF THE ECONOMY

CHAPTER
Introduction 2022-23.
• COVID-19 pandemic: The last two years have been difficult • Pickup in private sector investment: The year ahead poised
cor the world economy on account of the COVID-19 pandemic. for a pickup in private sector investment with the financial
 Repeated waves of infection, supply-chain disruptions system in good position to provide support for economy’s revival.
and, more recently, inflation have created particularly • Projection: These perditions are comparable with World Bank
challenging times for policy-making. and Asian Development Bank’s latest forecasts of real GDP growth
• Analyzing the aspects Putting the spotlight on the way forward of 8.7 percent and 7.5 percent respectively for 2022-23.
after the pandemic, the Economic Survey of 2021- 22 has • As per IMF’s latest World Economic Outlook projections:
analysed aspects such as inflation, global liquidity measures, India’s real GDP is projected to grow at 9 percent in 2021-22
and rising energy prices to detail the risks for the economy going and 2022-23 and at 7.1 percent in 2023-2024, which would
ahead. make India the fastest growing major economy in the world for
• It has also taken stock of growing revenues to indicate the all 3years.
availability of fiscal space, should the government see the • Agriculture and allied sectors: It is expected to grow by 3.9
need to provide additional support. percent; industry by 11.8 percent and services sector by 8.2 percent
• The Survey has noted that growth in 2022-23 will be in 2021-22.
supported by widespread vaccine coverage, gains from supply-side • On demand side consumption is estimated to grow by
reforms and easing of regulations, robust export growth, and 7.0 percent, Gross Fixed Capital Formation (GFCF) by 15 percent,
the availability of fiscal space to ramp up capital spending. exports by 16.5 percent and imports by 29.4 percent in 2021-22.
• Macroeconomic stability indicators: They suggest that the
Key highlights
Indian Economy is well placed to take on the challenges of 2022-
• Growth: Indian economy estimated to grow by 9.2 percent in
23.
real terms in 2021-22 (as per first advanced estimates)
 Investment, as measured by Gross Fixed Capital Formation
subsequent to a contraction of 7.3 percent in 2020-21.
(GFCF) is expected to see strong growth of 15 per cent in
• GDP projected to grow by 8- 8.5 percent in real terms in
2021-22 and achieve full recovery of pre-
4
VASAVI IAS ACADEMY
pandemic level.
safety-nets to cushion the impact on vulnerable sections
• Buffer against possible global liquidity tapering of society and the business sector, significant increase in
Combination of high foreign exchange reserves, sustained foreign capital expenditure to spur growth and supply side reforms for a
direct investment, and rising export earnings will provide adequate sustained long-term expansion.
buffer against possible global liquidity tapering in 2022-23.
• Government’s flexible and multi-layered response: It is
• Economic impact of “second wave”: It was much smaller partly based on an “Agile” framework that uses feedback-
than that during the full lockdown phase in 2020-21, though loops, and the use of eighty High Frequency Indicators (HFIs)
health impact was more severe. in an environment of extreme uncertainty.
• Government of India’s unique response: It comprised of  Agile is an iterative approach to project management and
software development that helps teams deliver value to their
customers faster and with fewer headaches.
Gross Domestic Output (Constant Prices, Base Year: 2011-12)
Vaccine economics • India is emphasizing on supply side reforms: rather than a

• Buffer against economic disruptions: The Survey says the total reliance on demand management. These supply side
progress of vaccination should be seen not just as a health response
reforms include deregulation of numerous sectors, simplification of
indicator, but also as a buffer against economic disruptions caused
processes, removal of legacies like retrospective tax,
by repeated pandemic waves.
privatization, production linked incentives and so on.
• Private consumption: This is based in part on the assumption
• Barbell strategy: Faced with all uncertainty, the government of
that private consumption “is poised to see stronger recovery with
rapid coverage in vaccination and faster normalisation of economic India opted for a “barbell strategy” that combined a bouquet of
activity”, and the importance of vaccination in the re-opening of safety nets to cushion the impact on vulnerable sections of
contact-intensive sector. society/business. It is a flexible policy response based on a
• Macro economic indicator: Vaccination is not merely a Bayesian updating of the information.
health response but is critical for opening up the economy and  Other leg of the barbell strategy is to cushion for unpredictable
therefore, it should be treated for now, as a macro economic negative outcomes by providing safety nets.
indicator. Over the course of a year, India delivered 157 crore doses.
5
VASAVI IAS ACADEMY
Share of Sectors in Nominal GVA

6
VASAVI IAS ACADEMY
02 FISCAL DEVELOPMENTS
CHAPTER
Introduction businesses, and the world’s largest food subsidy programme

• Over the last two years, fiscal policy has remained a targeting 80.96 crore beneficiaries enabled the creation of
significant tool for addressing the economic fallout of the safety-nets.
pandemic. The Government of India has adopted a calibrated • Measures like Production Linked Incentives (PLI), steps to
fiscal policy approach to the pandemic, which has the encourage investment in the infrastructure sector and enhancing
flexibility of adapting to an evolving situation in order to support the capital expenditure by the Central and state Governments
vulnerable sections of society/firms and enable a resilient • The Union Budget 2021-22 had enhanced the budget outlays
recovery. India’s unique agile policy response differed from for the more productive capital expenditure. The Government
the waterfall strategy of introducing front-loaded stimulus budgeted for a 34.5 per cent growth in capital expenditure over
packages, adopted by most other countries in 2020. Such an 2020-21 BE – with emphasis on railways, roads, urban
adaptive approach has now been widely accepted in the policy transport, power, telecom, textiles and affordable housing amid
circles (IMF Fiscal Monitor October 2021). continued focus on the National Infrastructure Pipeline.
 The Waterfall approach entails a detailed, initial assessment of
• Budget 2021-22 launched PLI schemes for 13 sectors, with
the problem followed by a rigid upfront plan for
an outlay of `1.97 lakh crore, for a period of 5 years starting from
implementation. This methodology works on the premise that
2021-22.
all requirements can be understood at the beginning and
therefore pre-commits to a certain path of action. This is Performance of Fiscal Indicators during 2021-22
the thinking reflected in five-year economic plans, and
• The fiscal deficit of the Central Government at end November
rigid urban master-plans.
2021 stood at 46.2 percent of the BE compared to 135.1 per cent
Fiscal Policy Strategy in the aftermath of the Pandemic during the same period in 2020-21 and 114.8 per cent during
Outbreak the same period in 2019-20.
• During this period both fiscal deficit and primary deficit stood
at levels much below the corresponding levels in the previous two
years.
Revenue Collection
• Net tax revenue to the Centre, which was envisaged to grow at
8.5 per cent in 2021-22 BE relative to 2020-21 PA, grew at
64.9 per cent during April to November 2021 over April to
November 2020 and at 51.2 per cent over April to November 2019.
• Within direct taxes, personal income tax has grown at 47.2 percent
over April-November 2020 and at 29.2 per cent over the
April-November 2019. The corporate income tax registered a
growth of 90.4 per cent over April-November 2020 and
• The agile fiscal policy response adopted by the Government 22.5 per cent over April-November 2019.
of India encompassed a change in mix of the stimulus measures • The indirect tax receipts have registered a YoY growth of 38.6 per
amidst an uncertain evolution of the pandemic situation. cent in the first eight months of this fiscal year. The rise in
• In the initial phase of the pandemic, the fiscal policy focused imports of goods and services ensued due to the recovery in both
on building safety-nets for the poor and vulnerable sections manufacturing sector and consumption demand, have led to a rise
of society to hedge against the worst-case outcomes. in customs collection.
• Stimulus measures such as direct benefit transfers to the
vulnerable sections, emergency credit to the small
7
VASAVI IAS ACADEMY
• The revenue from excise duty registered an YoY growth of

percent of GDP for 2021-22.
more than 60 per cent in 2020-21 PA.
• The GST collections for the Center were 61.4 percent of BE during Trends in Receipts
April to November 2021. Gross GST collections saw an increase • The Budget 2021-22 targeted significantly high growth in non-
of 61.5 per cent over April to December 2020 and 33.7 per cent debt receipts of the Central Government, which was driven by
over April to December 2019. robust growth in all its components.
• The non-tax revenue collections up to November 2021
registered an YoY increase of 79.5 per cent. The key component of Tax Revenue
dividends and profits during this period was surplus transfer
from RBI to the Central Government.
• The non-debt capital receipts include recovery of loans and
disinvestment receipts. The Budget 2021-22 had envisaged
to mobilize 1.75 lakh crore from disinvestment proceeds this year.
So far, the government has been able to raise 9330 crore (as on
24 January 2022) from disinvestment.
Expenditure
• The Budget 2021-22 envisaged a growth of 16.7 per cent in

gross tax revenue (GTR) over the revised estimates (RE) of 2020-
21.
• GTR was estimated at 22.17 lakh crore for 2021-22 BE, which
was 9.9 percent of the GDP.
• The budgeted growth in GTR was estimated to be led by 22.4 per
cent growth in direct taxes and 11.4 per cent growth in indirect
• The total expenditure of the Government increased by 8.8 per taxes over the revised estimates of 2020-21.
cent during April to November 2021 and stood at 59.6 percent of • Broadly, 50 percent of GTR was estimated to accrue from direct
Budget Estimate. taxes and the remaining 50 per cent from indirect taxes.
• While the revenue expenditure has grown by 8.2 percent during the
first eight months of 2021-22 over the same period in 2020-
Non-Tax Revenue
21, the non- interest revenue expenditure grew by 4.6 per cent • The Budget for 2021-22 envisaged generation of 2.43 lakh
over April to November 2020. crore of non-tax revenue, 16.8 percent higher than 2020-21
PA.
• During April to November 2021, the expenditure on major subsidies
stood at 2.31 lakh crore.
Non-Debt Capital Receipts
• Food subsidy under the Pradhan Mantri Garib Kalyan Ann
• The Budget for 2021-22 has envisaged generation of 1.88
Yojana – Phase III being the major component of total subsidies
lakh crore of non-debt capital receipts, comprising 1.75 lakh
was at two third of its BE i.e. 1.47 lakh crore during the first eight crore of disinvestment receipts.
months of 2021-22.
• In order to minimize the presence of the Government in the PSEs
• During April to November 2021, capital expenditure registered a across all sectors of the economy, the Government has adopted a
growth of 13.5 per cent over April to November 2020 and 28 per new disinvestment policy for Aatmanirbhar Bharat in February
cent over April to November 2019. 2021.
• The budgeted fiscal deficit for 2020-21 was revised from
3.5 per cent in BE to 9.5 per cent in RE. The fiscal deficit for Evolution of the Disinvestment Policy of the
2020-21 Provisional Actuals stood at 9.2 percent of GDP i.e. Government of India
lower than RE. • The New Public Sector Enterprise (“PSE”) Policy for
• The Medium- Term Fiscal Policy (MTFP) Statement presented Aatmanirbhar Bharat was notified on 4th February 2021.
with Budget 2021-22 envisaged a fiscal deficit target of
6.8
8
VASAVI IAS ACADEMY
• Under the New PSE Policy, public sector commercial enterprises

have been classified as Strategic and Non- Strategic sectors.
Transfer to States
• Following four broad strategic sectors have been delineated based on • The Fifteenth Finance Commission has recommended a total Post
the criteria of national security, energy security, critical Devolution Revenue Deficit grant of 1.18 lakh crore to 17
infrastructure, provision of financial services and availability States in the financial year 2021-22, of which an amount of
of important minerals- (i) Atomic Energy, Space and 98,710 crores has already been released, as on 6 th January 2022.
Defense; (ii) Transport and Telecommunication; (iii) Power, • With regard to the grants to Local Bodies, the XV-FC had
Petroleum, Coal and other minerals; and (iv) Banking, Insurance and recommended that urban areas are grouped into two broad categories
Financial Services.
for recommending grants to urban local bodies:
Asset Monetization (a) Category-I cities: urban agglomerations/cities with more
• The National Infrastructure Pipeline (NIP) envisaged a projected than one million populations and (b) Category-II cities: other
infrastructure investment of 111 lakh crores during FY 2020 to FY than million-plus cities.
2025. • The Commission has recommended that for cities with million
• The National Monetisation Pipeline (NMP) has been developed by plus population (Million-Plus cities), 100 per cent of the
NITI Aayog in consultation with infrastructure line ministries grants are performance-linked through the Million-Plus Cities
envisages to serve as an essential roadmap for the asset Challenge Fund (MCF).
monetisation of various brownfield infrastructure assets across • The Commission has recommended that 60 percent of the
roads, railways, shipping, aviation, power, telecom, oil & gas, and
grants to rural local bodies and for urban local bodies in non-
warehousing sectors.
Million-Plus cities should be tied to supporting and
• The NMP estimates aggregate monetization potential of 6.0 lakh
strengthening the delivery of two categories of basic services:
crores through core assets of the Central Government, over a four-
year period, from FY 2022 to FY 2025. (a) sanitation, maintenance of 'Open Defecation Free' status (for
Rural Local Bodies), solid waste management and attainment of
• The top 5 sectors which capture around 83 per cent of the
aggregate pipeline value include: Roads (27 per cent) followed by star ratings as developed by Ministry of Housing and Urban Affairs
Railways (25 percent), Power (15 percent), oil & gas pipelines (8 (for non- million plus cities / Category-II Cities / Towns; (b)
per cent) and Telecom (6 percent). Around 15 percent of assets drinking water, rain water harvesting and water recycling (both for
with an indicative value of ` 0.88 lakh crore are envisaged to be Rural Local Bodies and Urban Local Bodies).
rolled out in the current financial year (FY 2021-22).
• In pursuance of the Budget announcement, ‘National Land Central Government Debt
Monetisation Corporation’ (NLMC) is being incorporated • During the year, a major challenge in the aftermath of COVID-19
as a 100 per cent Govt of India owned entity with an initial pandemic was the management of debt, both for the Central
authorized share capital of 5000 crores and subscribed share and State Governments.
capital of 150 crores.
• Public Debt accounted for 89.9 per cent of total liabilities, while
Trends in Expenditure Public Account Liabilities, which include National Small Savings
• In the wake of the pandemic, the additional expenditure Fund, State Provident Funds, Reserve Funds and Deposits and other
requirements led to a YoY growth of more than 30 percent in Accounts, constituted the remaining 10.1 per cent.
the revenue expenditure of the Government in 2020-21 PA. • The total liabilities of the Central Government, as a ratio of GDP,
• The emphasis on capital expenditure was envisaged to continue in which were relatively stable over the past decade, have risen
2021-22 BE to reach a budget estimate of 2.5 percent of GDP. sharply in 2020-21. The Debt-GDP is however expected to
• As a proportion of total expenditure, capital expenditure has been follow a downward trajectory in the upcoming years.
estimated to increase from 12.1 per cent in 2020-21 PA to
• The recently launched Retail Direct Scheme by RBI will be
15.9 per cent in 2021-22 BE.
instrumental in channelizing the savings of middle class, small
• The higher capital expenditure with a focus on infrastructure
businessmen and senior citizens directly into risk free government
spending in 2021-22 BE will have a multiplier effect on the
securities.
ongoing economic recovery.
• Under the scheme, retail investors will be able to open a
• The Budget 2021-22 focuses on improving fiscal transparency,
Retail Direct Gilt (RDG) account using an online portal through
as the Extra Budgetary Resources (EBR) for 2021-22 have
which they can directly invest a minimum of `10,000 and maximum
been estimated at 30,000 crores.
of `2 crore per security.
9
VASAVI IAS ACADEMY
State Finances  Enhanced limit of borrowing for the States

• The Gross Fiscal Deficit of States is estimated to cross the  Loan to States in lieu of GST Compensation shortfall
Fiscal Responsibility Legislation (FRL) threshold of 3
 Scheme for Special Assistance to States for Capital Expenditure
percent of GDP during 2020-21 RE and 2021-22 BE.
• The Revenue Deficit of the States also increased from 0.1 per General Government Finances
cent of GDP in 2018-19 to 2 percent of GDP in 2020-21 (RE). • The General Government liabilities as a proportion of GDP
• This relaxation in borrowing limits was allowed on account of the increased steeply during 2020-21 on account of the additional
additional expenditure needs and constrained revenues of the borrowings made by Centre and States due to the shortfall in
States due to COVID-19. revenue and higher expenditure requirements arising out of
• The net borrowing ceilings of the States were enhanced to 5 per COVID-19 pandemic.
cent of GSDP of the States for the year 2020-21 and 4 percent
POLICY MEASURES TO ENHANCE THE EFFICIENCY OF
of GSDP of the States for 2021-22.
GOVERNMENT SPENDING
• Both Gross Fiscal Deficit and Revenue Deficit for the States
• Government e-Marketplace (GeM)
are budgeted to decline in 2021-22 from the high levels they
reached in 2020-21.  The Government in 2016 had set up a dedicated e-market
known as Government e-Marketplace (GeM) for purchase
• In addition to the net borrowing ceilings fixed for the States,
of certain standard day to day use goods.
XV-FC had recommended performance based additional
 The General Financial Rules 2017 mandates all Ministries and
borrowing space of 0.50 per cent of Gross State Domestic Product
Departments to procure Goods and Services available on GeM
(GSDP) to States in the power sector.
from GeM.
Measures taken by the Centre to support the States  The use of this e-marketplace has resulted in a substantial
during 2021-22 reduction in prices in comparison to the rates used earlier, with
• The Central Government has taken consistent steps to impart average prices falling by at least 15-20 percent, up to 56
unflinching support to the States in the challenging times of percent.
the pandemic. These measures are as follows:
10
VASAVI IAS ACADEMY
New guidelines for reforms in Public Procurement and years, they have been given exemption from filing income
Project Management tax returns if they only have pension income and interest income.
• The Government issued new guidelines for procurement and project  The time limit for reopening of assessment has also been reduced
management in October 2021, which have expanded the ambit of from six years to three years.
selecting bidders for executing government projects and procuring  Certain non-resident persons have also been exempted
goods and services. The key changes in the procurement process are from the requirement of furnishing of income tax returns,
as follows: subject to fulfillment of prescribed conditions.
 Quality-cum-Cost Based Selection (QCBS) for Works  To reduce litigation, Finance Act 2021 has introduced a special
and Non-Consultancy Services: The revised guidelines mechanism for dispute resolution to reduce the disputes
now allow QCBS for the selection of bidders for works and non- particularly for small and medium taxpayers having
consultancy services as well (where estimated value of
procurement does not exceed 10 crore). Measures to boost investment
 Fixing of Evaluation/ Qualification and Scoring • The Taxation Laws (Amendment) Act 2021 has provided
Criteria under QCBS for Works and Non- Consultancy that no tax demand shall be raised in future on the basis of the
Services: In order to ensure quality, the procuring entities said retrospective amendment for any offshore indirect transfer of
now have the freedom to amend the specifications based Indian assets if the transaction was undertaken before 28th May
on their requirements and make any criteria used in 2012.
evaluation mandatory. • Incentives have been provided by Finance Act 2020 to encourage
 Stringent deadlines for making payments: The new foreign investments of Sovereign Wealth Funds and Pension Funds
guidelines stipulate timely release of payments of 75 per cent or into the infrastructure sector of India.
more of bills raised within 10 working days of the submission of • In order to incentivize start-ups, the eligibility for claiming tax
the bill. The remaining bill payment is to be made after final holiday has been extended for start-ups incorporated till 31 st
checking within 28 working days. The procuring entity is also March 2022 by the Finance Act 2021.
liable to pay interest if the payment of bills is delayed by over
• The capital gains exemption for investment in start-ups has
30 working days.
also been extended for one more year till 31st March 2022.
 Single bid rejection: The new rules stipulate public
• Various tax incentives have been provided for units located in
authorities to consider single bid as valid provided that the
the International Financial Services Centre (IFSC) in order to make
procurement was satisfactorily advertised, sufficient time
it a hub for financial services in the world.
was given for submission of bids, the qualitative criteria
were not unduly restrictive and prices are reasonable in Promoting digital transactions
comparison to market values.
• Through the Finance Act 2021, the monetary threshold of getting
 Fixed Budget based Selection for Consultancy
books of accounts audited has been increased to Rs 10 crores in
Services: Under this method, the cost of consulting services
case of businesses whose total turnover or gross receipts made in
shall be specified as an affixed budget in the tender
cash does not exceed 5 percent of the total turnover or gross receipts
document itself. Because of the basic and repetitive nature of
and the total expenditure including purchases made in cash does
the consultancy work, its budget can be reasonably
not exceed 5 percent of the total expenditure during the previous
approximated.
year.
Direct Tax measures by CBDT during 2021-22
Measures undertaken to curb Tax Evasion and
• Ease of compliance for taxpayers: promote the widening of tax-base
 Most of the processes and compliance requirements
• For widening the tax net of Tax Deduction at Source (TDS) and
have been shifted to online platforms and the need for the
Tax Collection at Source (TCS) several new transactions were
taxpayers to physically visit the Income Tax Offices has
brought into its ambit.
been eliminated or minimized.
• In order to promote the furnishing of income-tax returns, a
 A new e-filing portal was launched in 2021 with improved
special provision has been inserted to the Act to deduct/ collect tax
features such as a new taxpayer- friendly portal integrated
at higher rates in case of certain persons who have not filed their
with immediate processing of ITR return, pre-filled returns,
income tax return for both of the preceding two previous years
free of cost ITR preparation software, new call centre for
taxpayer assistance including chatbot/ live agent and mobile app and the tax deducted/ collected was greater than Rs 50,000 in each
function. of the two years.
 To ease the burden of senior citizens above the age of 75
11
VASAVI IAS ACADEMY
Indirect tax measures by CBIC during 2021-22 • To provide relief to the taxpayers from the high amount of late
(Customs): fee accumulated on pending GSTR-3B returns, a late fee
• The Most Favored Nations rates of Basic Custom Duties have amnesty scheme has been brought out in respect of pending returns
been increased in recent years on such items which are being in FORM GSTR-3B for the tax periods from July, 2017 to April,
manufactured in India or which domestic industry aspires to 2021.
manufacture.
• To reduce the burden of late fee on smaller taxpayers, late fee
• Under the Phased Manufacturing Plan (PMP) in respect of structure (under section 47 of the CGST Act) has been rationalized
significant products like mobile phones, other electronic for prospective tax periods from June 2021 onwards by aligning the
goods like TVs, electric vehicles, batteries, solar panel etc, upper cap of late fee with tax liability/ turnover of the taxpayers.
the Basic Custom Duties (BCD) rates in respect of different stages • Retrospective amendment of section 50 of CGST Act, 2017 was
of the value chain of these products are calibrated in a manner that
done to provide interest payment on net cash basis with effect from
encourages gradual deepening of domestic value addition. .
01.07.2017 to facilitate the taxpayers and to help in removing
• CBIC has launched the use of ECTS (Electronic Cargo ambiguity and disputes regarding payment of interest on gross tax
Tracking System) in Oct 2021 to ensure swift and secure basis or net cash basis.
movement of dutiable goods from port of import to customs
• Instead of quarterly requirement to file FORM GST ITC-04
warehouse. return, containing details of all goods sent to job worker and
• The scheme of Direct Port Delivery (DPD) has been revamped to received from job worker, it has been made an annual
a Customs document based DPD from the previous client based requirement for taxpayers having annual aggregate
DPD. turnover in preceding financial year is up to ` 5 crores and
• CBIC has introduced a Risk Management System (RMS) to once in six months for taxpayers having annual aggregate
facilitate faster drawback disbursal for genuine exporters and to help turnover in preceding financial year above ` 5 crores.
in better checking of fraudulent drawback claims on exports.
Good and Services Tax(GST)
• CBIC has launched the Indian Customs Compliance
Information Portal (CIP) for providing free access to information GST was introduced through the 101st Constitution Amendment Act,
on all Customs procedures and regulatory compliance for nearly 2016.
12,000 Customs Tariff Items. A Single Tax: The Government of India introduced the GST under their
• To address the shortage of containers across the Country, CBIC “one nation, one tax” reform. It is a single tax levied on the supply of
issued instructions to enable more availability of containers for goods and services right from the manufacturer to the consumer and
exports. essentially replaces multiple indirect taxes.
• Remission of Duties and Taxes on Exported Products Scheme Framework: Under the GST framework: (i) the center will levy and
enables the issue of Export Rebate in the form of a transferable collect the Central GST, (ii) the states will levy and collect the State
duty credit/ electronic scrip (e-scrip) which will be maintained GST, on supply of goods and services within a state.
in an electronic ledger by the CBIC. Integrated GST (IGST): The center will levy the Integrated GST (IGST)
• This revamped end-to-end automated scheme aims to on inter-state supply of goods and services, and apportion the
provide a boost to Indian exports by providing a level playing field state’s share of tax to the state where the good or service is
to domestic industry abroad. consumed.
The GST Council is a Constitutional body chaired by the Union
Changes in Goods and Services Tax:
Finance Minister and comprises the Minister of State for
Finance/ Revenue and finance ministers of all states. It makes
recommendations on all important issues related to the Goods
and Services Tax.
12
VASAVI IAS ACADEMY
03 EXTERNAL SECTOR
CHAPTER
Introduction • The impact on trade-in value terms varied significantly across

• External trade recovered strongly in 2021-22 after the different types of goods. Trade of manufacturing goods, agricultural
pandemic-induced slump of the previous year, with strong products, and fuels & mining products witnessed positive and
capital flows into India, leading to a rapid accumulation of higher year-over-year (y-o-y) growth.
foreign exchange reserves. The resilience of India’s external sector
• The trade value of fuels and mining products was boosted by a
during the current year augurs well for growth revival in the
four-fold rise in natural gas prices. Among manufactured
economy. However, the downside risks of global liquidity
goods, some sectors showed a strong y-o-y increase,
tightening and continued volatility of global commodity prices,
including iron and steel, electronic components, and pharmaceuticals
high freight costs, coupled with the fresh resurgence of COVID-
while others such as automotive products and
19 with new variants may pose a challenge for India during
telecommunications equipment showed stagnation or decline,
2022-23.
reflecting the recent shortage of semiconductors.
Major Highlights • About global financial conditions, in 2021, inflation picked
USA followed by UAE and China remained the top export up globally as economic activity revived with the opening up
destinations in April-November, 2021, while China, UAE, and the of economies. Inflation in the US touched 6.8 percent in
November 2021, the highest since 1982, driven largely by energy
USA were the largest import sources for India.
and food prices.
India’s current account balance turned into a deficit of 0.2
percent of GDP in the first half (H1) of 2021-22, largely led by a • This may result in tightening of financial conditions, adversely
deficit in the trading account. affecting capital flows, putting pressure on the exchange rate,
and slowing down growth in emerging economies. Therefore, the
India’s external debt rose to US$ 593.1 billion as of end-
revival in inflation across the world now poses risks from both
September 2021, from US$ 556.8 billion a year earlier,
a tighter global liquidity condition and exchange rate volatility
reflecting additional SDR allocation by IMF, coupled with higher
in global currency.
commercial borrowings.
India was the fourth-largest forex reserves holder in the DEVELOPMENTS IN INDIA’S MERCHANDISE TRADE
world after China, Japan, and Switzerland.
India’s external sector is resilient to face any unwinding of the

global liquidity arising out of the likelihood of faster
normalization of monetary policy by systemically important
central banks, including the Fed, in response to elevated
inflationary pressures.
GLOBAL ECONOMIC ENVIRONMENT

The COVID-19 pandemic continued to impact the global
economic environment during 2021.
• International Monetary Fund (IMF) in its World Economic Outlook
Merchandise Exports
(WEO) October 2021 edition projected higher growth of global
• During 2021-22 (April-December), the merchandise exports
trade volume in goods and services of 9.7 percent in 2021,
recorded growth of 49.7 percent to US$ 301.4 billion, compared to
moderating to 6.7 percent in 2022, in line with the projected global
the corresponding period of last year and 26.5 percent over 2019-
recovery. World Trade Organization (WTO) in its October 2021
20 (April-December), exceeding the pre- pandemic levels.
release, also upgraded its forecast for global merchandise trade
volume growth to 10.8 percent in 2021, followed by a 4.7 percent • Out of an ambitious export target of US$ 400 billion set for
rise in 2022. 2021-22, India has already attained more than 75 percent of
13
VASAVI IAS ACADEMY
it by exporting goods worth US$ 301.4 billion, which is higher than

and auto components, pharmaceutical drugs, telecom & networking
the export target of US$ 300 billion set for the April-
products, electronic/ technology products, etc., are some of the
December period of 2021-22.
sectors covered under the PLI scheme. The scheme is
• The rise in exports is contributed by high growth in petroleum, oil, expected to give a push to both domestic manufacturing capabilities
and lubricants (POL) exports (constituting about 15 percent and exports.
of total exports) as well as non-POL exports, indicating the
• Infusion of capital in EXIM Bank: The government of India
broad-based nature of expansion.
infused capital of `750 crore in Export-Import Bank of India
• Owing to the rise in global crude oil prices, petroleum products (EXIM Bank) during the current financial year 2021-22 through
continued to be the most exported commodity in April- subscription to its share capital.
November 2021, whose exports have more than doubled and
• The export promotion schemes such as Trade Infrastructure for
their share rose to 14.9 percent from 8.8 percent in the
Export Scheme (TIES), Market Access Initiatives (MAI), Special
corresponding period a year earlier.
Economic Zone (SEZ) scheme, Emergency Credit Line Guarantee
• The exports of aluminum and its products are a newly added Scheme (ECLGS) and Advance Authorization Scheme continue
commodity in the list of top ten exported commodities during April- to provide support to trade infrastructure and marketing.
November, 2021.
Enabling an efficient Logistics eco-system to
• India has initiated its trade agreement negotiations for:
boost exports
 Comprehensive Economic Cooperation Agreement (CECA)
between India and Australia. India has made substantial progress in trade-related logistics,
 FTA with European Union (EU). reflected in leading global indices. India scored 90.3 percent in
 Comprehensive Economic Partnership Agreement (CEPA) with 2021 in United Nations Economic and Social Commission for Asia
Canada and Pacific’s (UNESCAP) latest Global Survey on Digital and
 CEPA with UAE. In addition, India is reviewing its existing Sustainable Trade Facilitation.
trade agreements such as the CECA with Singapore and ASEAN- Transparency index got a 100 percent score in 2021, while
India Trade in Goods Agreement (AITIGA) with ASEAN, paperless trade and formalities got 96 percent.
among others.
Major Schemes & Initiatives to boost exports

Pradhan Mantri Gati Shakti National Master Plan
The impressive performance of India’s exports may be attributed to
(NMP)
various schemes and initiatives taken by the Government to boost
exports and to reduce the adverse impact of COVID-19. Some of Approved in October 2021, PM Gati Shakti NMP aims to provide
these schemes are as under: multimodal connectivity to various economic zones and integrate the
infrastructure linkages holistically for seamless movement of people,
• Remission of Duties and Taxes on Exported Products
goods & services to improve logistics efficiency.
(RoDTEP): This new scheme reimburses currently un-
refunded Central, State, and Local taxes and duties incurred Gati Shakti will bring 16 Ministries together for integrated
in the process of manufacture and distribution of exported products planning and coordinated implementation of infrastructure
and thereby provides a level playing field to domestic industry connectivity projects like Bharatmala, Sagarmala, inland
abroad. Major components of taxes covered are electricity duty, waterways, UDAN, etc.
value-added tax (VAT) on fuels used in transportation/ It will also leverage technology extensively including spatial
distribution, mandi tax, stamp duty, etc. planning tools with ISRO imagery developed by BiSAG-N
• Developing District as Export Hub: Under this initiative, the (Bhaskaracharya National Institute for Space Applications and
focus is to make districts active stakeholders in the promotion of Geoinformatics).
exports of goods/services produced/ manufactured in the district. This will boost economic growth, attract foreign investment and
District Export Promotion Committees (DEPCs) have been set up in create multiple employment opportunities.
each district. This scheme would help in diversifying the portfolio
of export commodities.
• Production-Linked Incentive (PLI) scheme: An outlay of Merchandise Imports
`1.97 lakh crore (US$ 26 billion) was announced in Union Budget • The merchandise imports grew at the rate of 68.9 percent to
2021-22 for the Production-Linked Incentive (PLI) scheme for US$ 443.8 billion in April-December, 2021 over the
14 key sectors starting from 2021-22. Automobiles corresponding period of last year and 21.9 percent over April
December 2019.
14
VASAVI IAS ACADEMY
• Among major import commodities, crude petroleum imports more

• Among the top ten countries for import origin, China, UAE, and
than doubled to US$ 73.3 billion in April-November, 2021
the USA were the top import sources for India in April-
compared to last year and continues to be the highest imported
November, 2021, with China's share reducing to 15.5 percent from
commodity. Gold imports registered a sharp rise to US$ 33.2
17.7 percent in the corresponding period a year earlier –
billion (8.7 percent share), from US$ 12.3 billion (5.6 percent share)
in the corresponding period a year earlier, returning to the second reflecting increased diversification of India's import sources.
position.
Top ten Import Sources in 2021-22 (April-November) [By Share in Per cent]
TRADE-IN SERVICES BOP BALANCE AND FOREIGN EXCHANGE RESERVES

• Services Exports
• The current account deficit in the BoP determines how much
 India’s services exports recorded growth of 18.4 percent
net capital inflows into the country can be absorbed or used
to US$ 177.7 billion during 2021-22 (April-December).
for growth. It is expected to be within manageable limits during
• Services Imports
2021-22. From a historical perspective, India can sustain a
 Services imports rose by 21.5 percent to US$ 103.3 billion in
current account deficit of 2.5-3.0 percent of GDP without
2021-22 (April-December) from the corresponding period a
getting into an external sector crisis.
year earlier.
• There was a massive increase in India’s foreign exchange
Note: As per the Migration and Development Brief 35, World
reserves during 2021-22. The forex reserves stood higher
Bank (November 2021), India continues to be the largest re-
at US$ 633.6 billion as of end-December 2021.
mittance recipient country in the world in 2021 (in current US dollar
terms) and has been so since 2008.
NET INTERNATIONAL INVESTMENT POSITION
• Net International Investment Position (IIP) is the difference
CURRENT ACCOUNT BALANCE
between the value of financial assets of residents of an
• After witnessing a surplus in H1: FY 21, India’s current account
economy that are claims on non-residents and the liabilities
balance flipped into a deficit of US$ 3.1 billion (0.2 percent of
of residents of an economy to non-residents at a point in
GDP) in H1: FY 22, on the back of a sharp increase in the
time. It represents either a net claim on or a net liability to the rest
merchandise trade deficit.
of the world.
15
VASAVI IAS ACADEMY
• India’s net IIP stood at (-) 11.3 percent of GDP (US$ -332
• Accordingly, being the second largest component, Indian rupee-
billion) as of end-September 2021.
denominated debt provides significant insulation from
EXTERNAL DEBT exchange rate fluctuations.
• India’s external debt as of end-September 2021, estimated at Conclusion

US$ 593.1 billion.
• India’s external debt continues to be below what is estimated to be
• Commercial borrowings, the largest component of external debt, at optimal for an emerging market economy, while various external
US$ 218.8 billion, recorded a quarter-over-quarter (q-o-q) sector vulnerability indicators improved over the recent years,
positive growth of 2.5 percent over the level a quarter ago. pointing towards the resilience of India’s external sector.
• The NRI deposits, the second largest component, at US$ • However, India’s external sector – well supported by strong
141.6 billion were at the same level as at end of the previous exports, capital inflows, low CAD and external financing
quarter. requirements and high foreign exchange reserves,
• The short-term trade credit, the third largest component, at with various external vulnerability indicators well within
US$ 97.4 billion continued to contract. manageable limits – is far better prepared this time to face
• Together, these three components constitute 77.2 percent of any external shocks arising out of tightening of the monetary policy
total external debt as of end-September, 2021. stance by the advanced economies in coming months.
16
VASAVI IAS ACADEMY
04 MONETARY MANAGEMENT AND FINANCIAL

INTERMEDIATION
CHAPTER
INTRODUCTION market-based reverse

• Monetary policy and liquidity operations since the beginning
of the COVID-19 pandemic have been geared towards
mitigating its adverse impact on the economy.
• Accommodative monetary policy along with other regulatory
dispensations, asset classification standstill, temporary
moratorium, and provision of adequate liquidity was put in
place to provide a safety net to the system.
• In 2021-22, some of the measures undertaken by RBI like
CRR reduction reached pre-set sunset dates, liquidity has
been wound down partly but remains in surplus mode, and
regulatory measures have been realigned.
MONETARY DEVELOPMENTS
• The repo rate which currently stands at 4 percent is the lowest in
the last decade.
• Since May 2020, the policy rates have been on hold along with
an accommodative monetary policy stance with forwarding
guidance that this stance will continue as long as necessary to revive
growth on a durable basis while ensuring that inflation remains
within the target (Consumer Price Index inflation of 4 percent
within a band of +/- 2 percent).
LIQUIDITY CONDITIONS AND THEIR MANAGEMENT

• Liquidity has remained in surplus in the system since mid-
2019, in sync with the easing of monetary conditions.
• In 2021-22 so far, the RBI resumed normal liquidity
operations in a phased manner and engaged in rebalancing
liquidity from passive absorption under fixed-rate reverse
repo under its Liquidity Adjustment Facility (LAF) to
17
VASAVI IAS ACADEMY
repo auctions (like Variable Rate Reverse Repo (VRRR)).
• The liquidity conditions remained in surplus in 2021-22.
DEVELOPMENTS IN G-SEC MARKET

• The yields on 10-year G sec which had reached 8.2 percent on
26th September 2018 reduced substantially to reach 5.75 percent in June
2020. It has since then increased to stand at
6.45 percent as of 31st December 2021.
NATIONAL ASSET RECONSTRUCTION COMPANY

LIMITED
BANKING SECTOR
An Asset Reconstruction Company (ARC) Limited and Asset
• The Gross Non-Performing Advances (GNPA) ratio (i.e. GNPAs as
Management Company (AMC) would be set up to consolidate
a percentage of Gross Advances) and Net Non- Preforming (NNPA)
and take over the existing stressed debt and then manage and
ratio of Scheduled Commercial Banks (SCBs) continued to decline
dispose of the assets to Alternate Investment Funds and other
since 2018-19. GNPA ratio of SCBs decreased from 7.5 percent
potential investors for eventual value realization.” In line with
at end-September 2020 to
this vision, two entities viz. National Asset Reconstruction
Company Limited (NARCL), and India Debt Resolution Company
Limited (IDRCL) have been formed.
NARCL will majorly be owned by Public Sector Banks. Canara
bank is the Sponsor with a shareholding of up to 12 percent.
NARCL would be capitalized through a combination of equity and
debt from various Banks and will have a finite life of 5 years.
It may acquire stressed assets of about `2 lakh crore approx. in
multiple phases within the extant regulations of RBI under the
15:85 structure, implying that the consideration for the
acquisition will be 15 percent in Cash and 85 percent in Security
Receipts.
NARCL and IDRCL’s relationship will be defined through a debt
management agreement wherein NARCL will aggregate and
acquire the stressed assets and IDRCL, in turn, will provide
stressed assets management and resolution services to NARCL
on an exclusive basis.
18
VASAVI IAS ACADEMY
6.9 percent at end-September 2021. NNPA ratio of SCBs was

enabling rescue efforts for the bank.
2.2 percent at end-September 2021.
 Timely repayment by the bank to DICGC: To establish the
• GNPA ratio of Public Sector Banks (PSBs) decreased from priority of repayment to DICGC (both interest and principal
9.4 percent at end-September 2020 to 8.6 percent at end- amount), a provision for penal interest in case of delay has been
September 2021. The Stressed Advances ratio of PSBs increased put in the act.
marginally from 10.0 percent to 10.1 percent during the same  No ceiling on premium: The earlier act earlier had a ceiling
period on account of rising in restructured advances. of 15 paise on premium, which has been removed. Now, the
• The Capital Adequacy Ratio has continued to improve since ceiling on the premium will be notified by DICGC, with the
2015-16. Capital to Risk-weighted Asset Ratio (CRAR) of prior approval of RBI.
SCBs increased from 15.84 percent at end-September 2020
to 16.54 percent at end-September 2021 on account of its BANK CREDIT GROWTH
improvement for both public and private sector banks. • The credit growth had been declining since 2019.
• The credit growth was 5.3 percent at beginning of April 2021 and
DEPOSIT INSURANCE IN INDIA
started to increase since then, but was still modest and stood at 7.3
• The Deposit Insurance and Credit Guarantee Corporation
percent as of 17th December 2021.
(Amendment) Act, passed by the Parliament in 2021, made
Note:
significant changes in the landscape of deposit insurance in DIGITAL PAYMENTS
India.
• UPI as a payment option in IPO’ was introduced as a new
• Under the Act, the Corporation is liable to pay the insured deposit payment channel to retail investors by SEBI.
amount to depositors of an insured bank. Such liability may arise
• The transaction limit for such transactions which was increased
when an insured bank undergoes:
by RBI from `1 lakh to `2 lakh in March 2020 was further
 liquidation (sale of all assets on closing down of the bank)
increased to `5 lakh in December 2021.
 reconstruction or any other arrangement under a scheme, or
• RBI and the Monetary Authority of Singapore announced a
 merger or acquisition by another bank. Deposit insurance
project to link UPI and PayNow, which is targeted for
provided by DICGC covers all commercial banks, including
operationalization by July 2022. Bhutan recently became the
Payment Banks, Small Finance Banks, Regional Rural Banks,
first country to adopt UPI standards for its QR code.
Foreign Bank branches in India, local area banks, and Co-
operative Banks in all States and Union Territories. • It is also the second country after Singapore to have
BHIM-UPI acceptance at merchant locations.
• The following are the key features of the Amendment Act:
 Introduced interim payments: Interim payment will now be
FACTORING IN INDIA
made by DICGC to depositors of those banks for whom any
• Factoring is an important source of liquidity worldwide,
restrictions/ moratorium have been imposed by RBI under the
especially for MSMEs. Factoring is a transaction where an entity
Banking Regulation Act resulting in restrictions on depositors
sells its receivables (dues from a customer) to a third party (a
from accessing their savings.
‘factor’ like a bank or NBFC) for immediate funds.
 Timeline for interim payments: Clear-cut timeline of a
• To solve the liquidity issues of MSMEs and lay down the
maximum of 90 days has been fixed for providing interim
basic legal framework for factoring in India, the Factoring
payment to depositors. Within the first 45 days, the
Regulation Act 2011 was enacted.
insured bank must furnish the details of all outstanding deposits
• As per the Factoring Act 2011, four types of entities were allowed to
to the Corporation.
engage in factoring business: Banks, Statutory Corporations (which
 Within 30 days of the receipt of details, the Corporation will
were exempted from registration under Section 5), NBFCs (which
verify the authenticity of the claims and within 15 days of
have to obtain registration from RBI), and companies.
the verification, the Corporation must make the payment to
• As per the Factoring Act 2011, RBI grants registration to only those
such depositors.
NBFCs which do factoring as “principal business”, i.e. whose
 Repayment by banks to DICGC  Deferment of
financial assets in the factoring business constitute at least
repayments: DICGC may defer repayments due to it from
50percentt of its total assets and the income derived from
an insured bank after insurance pays out, on terms decided by
factoring business is not less than 50 percent of its gross income.
DICGC’s Board. It is in spirit with the rationale of interim
• The Factoring Regulation (Amendment) Act, 2021 was enacted with
payments, i.e., to help depositors while also
the amendments in line with the recommendations of the UK Sinha
Committee.
19
VASAVI IAS ACADEMY
INSURANCE SECTOR access to local assets before funds go to the foreign

• In India, insurance penetration was 2.71 percent in 2001 and has administration or not.
steadily increased to 4.2 percent in 2020. As of 2020, the  Recognition of the claims of local creditors in a foreign
penetration for life insurance in India is 3.2 percent and nonlife administration.
insurance penetration is 1 percent.  Recognition and enforcement of local securities, taxation system
• Globally, insurance penetration was 3.3 percent for the life over local assets where a foreign administrator is appointed, etc.
segment and 4.1 percent for the non-life segment in 2020. • The Insolvency Law Committee (ILC) had recommended the
adoption of the United Nations Commission on International Trade
Cross Border Insolvency
Law (UNCITRAL).
• Cross-border insolvency signifies circumstances in which an
• This law addresses the core issues of cross-border insolvency
insolvent debtor has assets and/or creditors in more than one
cases with the help of four main principles:
country.
 Access: It allows foreign professionals and creditors direct
• At present, the Insolvency and Bankruptcy Code, 2016 (IBC) access to domestic courts and enables them to participate
provides for the domestic laws for the handling of an insolvent in and commence domestic insolvency proceedings against a
enterprise. IBC at present has no standard instrument to restructure debtor.
the firms involving cross-border jurisdictions.  Recognition: It allows recognition of foreign proceedings and
• The absence of a standardized cross-border insolvency enables courts to determine relief accordingly.
framework creates complexities and raises various issues such as:  Cooperation: It provides a framework for cooperation between
 The extent to which an insolvency administrator may obtain insolvency professionals and courts of countries.
access to assets held in a foreign country.  Coordination: It allows for coordination in the conduct of
 Priority of payments- Whether local creditors may have concurrent proceedings in different jurisdictions.
20
VASAVI IAS ACADEMY
05 PRICES AND INFLATION

CHAPTER
Introduction the price rise in pulses and edible oils that reported high inflation
• Rising global inflation: As economic activity started showing reflecting the impact of imported inflation in these
signs of picking-up in the second year of the pandemic, the commodities.
global economy faced the fresh challenge of rising global inflation. • Petrol and diesel prices: Reduction in central excise and
• Major economies: COVID-19 related stimulus spending subsequent cuts in VAT by most States has also helped
in major economies along with pent-up demand boosting ease petrol and diesel prices.
consumer spending pushed inflation up in many advanced
• Wholesale inflation based on Wholesale Price Index (WPI)
and emerging economies.
after remaining very benign during the previous financial year
• The surge in energy, food, non-food commodities, and on account of pandemic induced weakening of economic activity,
input prices, supply constraints, disruption of global supply chains, record low global crude oil prices and weak demand, witnessed a
and rising freight costs across the globe stoked global inflation sharp uptick, rising to 12.5 per cent during 2021- 22.
during the year.
• This was attributable to the pick-up in economic activity,
• Crude oil prices also witnessed an upswing during the year on the sharp increase in international prices of crude oil and other imported
back of increased demand from recovering economies and supply inputs, and high freight costs.
restrictions by the Organization of the Petroleum Exporting
• The consequent divergence between CPI-C and WPI
Countries and its allies (OPEC+).
inflation: during the year remained a subject of debate.
• On the domestic front the average headline Consumer Price
• This divergence can be explained by factors such as variations due
Index-Combined (CPI-C) inflation in India moderated to 5.2
to base effect, difference in scope and coverage of the two indices,
per cent in 2021-22 from 6.6 per cent in the corresponding
their price collections, items covered and difference in commodity
period of 2020-21 and was recorded at 5.6 per cent in 2021.
weights.
• The Consumer Price Index inflation remained range bound
• Further, WPI is more sensitive: to cost-push inflation led
as food prices eased considerably due to the supply management
by imported inputs. With the gradual waning of base effect in
response by the Government.
WPI, the divergence in CPI-C inflation and WPI inflation is also
• Food inflation remained benign during the year at 2.9 per cent expected to narrow down.
as against 9.1 per cent in the corresponding period last year.
• In the case of vegetables prices of onions and potatoes Key highlights
remained under control, though retail prices of tomatoes witnessed • The average headline CPI-Combined inflation moderated to
an uptick due to untimely rains in major producing states. 5.2 per cent in 2021-22 from 6.6 per cent in the corresponding
 However, with fresh arrivals in the market, retail prices period of 2020-21.
of tomatoes too, are showing signs of easing.  The decline in retail inflation was led by easing of food
 While seasonality plays a significant role in the case of inflation.
vegetables, random shocks like untimely rains also have  Food inflation averaged at a low of 2.9 per cent in 2021-
an impact on their availability and prices. 22 (April to December) as against 9.1 per cent in the
 A strong network of cold storage chains well supported corresponding period last year.
by effective transport infrastructure is needed to stabilize the  Effective supply-side management kept prices of most
prices of such perishable commodities. essential commodities under control during the year.
 Effective supply-side management kept prices of most  Proactive measures were taken to contain the price rise in pulses
essential commodities under control during the year. and edible oils.
• Edible oils: Proactive measures were taken to contain  Reduction in central excise and subsequent cuts in
Value Added Tax by most States helped ease petrol and
diesel prices.
21
VASAVI IAS ACADEMY
• Wholesale inflation based on Wholesale Price Index (WPI)

 Recently, government has been prioritizing increasing
rose to 12.5 per cent during 2021-22.
production of pulses and oilseeds through area expansion,
 This has been attributed to:
productivity through HYVs, MSP support and procurement.
 Low base in the previous year,
• Calibrated Import Policy: Knee jerk reactions to price rise
 Pick-up in economic activity,
of essential commodities like pulses and edible oils through
Sharp increase in international prices of crude oil and other
frequent import duty/tariff revisions though providing
imported inputs, and
immediate relief to the consumers in the way of lower prices, send
High freight costs.
wrong signals to domestic producers and create an environment of
• Divergence between CPI-C and WPI Inflation:
uncertainty.
 The divergence peaked to 9.6 percentage points in May 2020.  A long-term consistent approach is mandated.
 However, this year there was a reversal in divergence with
 A step in this direction has been taken by the government where
retail inflation falling below wholesale inflation by 8.0 five year MoUs have been signed with Myanmar for
percentage points in December 2021.
annual import of 2.5 LMT of Urad and 1 LMT of Tur, with
 This divergence can be explained by factors such as: Malawi for annual import of 1 LMT of Tur, and MoU with
▶ Variations due to base effect, Mozambique for annual import of 2 LMT Tur has been
▶ Difference in scope and coverage of the two indices, extended by another five years.
▶ Price collections,  These MoUs will ensure predictability in the quantity of
pulses being produced abroad and exported to India, thus
▶ Items covered,
benefiting both India and the pulse exporting country.
▶ Difference in commodity weights, and
• Focus on transportation and storage infrastructure for
▶ WPI being more sensitive to cost-push inflation led by
perishable commodities: Better storage and supply chain
imported inputs.
management is required to ensure availability in lean season
• With the gradual waning of base effect in WPI, the divergence and reduced wastages of horticulture and other perishable essential
in CPI-C and WPI is also expected to narrow down. commodities to reduce the seasonal spikes in prices for
consumers, glut for the farmers in times of good harvests due to lack
Long term perspective for management of supply side
of marketing infrastructure, resulting in distress sales.
factors
 Effective utilisation of Agriculture Infrastructure Fund for
• Changing Production Patterns: Encouraging farmers to shift
investment in viable projects for post-harvest management
from cultivation of rice and wheat to pulses and oilseeds would help infrastructure for perishable commodities can help improve
ensure that the country is self-reliant in pulses and oilseeds and agriculture infrastructure in the country.
also assist in reducing import dependence.  Schemes like Operation Green and Kisan Rail need to be
 Shift in cultivation towards pulses would also enable the exploited further to protect the interests of the farmers as well as
government to maintain realistic buffer stocks of rice and wheat. the consumers.
General inflation based on different price indices

22
VASAVI IAS ACADEMY
SUSTAINABLE DEVELOPMENT AND CLIMATE

06 CHANGE
CHAPTER
Introduction: increase of 12, 10 and 8 points respectively.

• India has progressed on the fulfillment of Sustainable • Chandigarh (score of 79) retained its top rank amongst UTs in
Development Goals (SDGs), citing an improvement in the overall 2020-21 while Puducherry, Lakshadweep and Delhi (score of
score of NITI Aayog SDG India Index & Dashboard. 68) ranked second.
• It has also increased its total forest cover. The chapter highlights the • Puducherry made the highest gain (nine points) in 2020-21,
importance of balancing rapid economic growth with
followed by Delhi, Jammu and Kashmir and Ladakh (seven
conservation, ecological security & environmental sustainability. It points each).
also discusses several initiatives taken in the area of sustainable
• Special attention is being paid to achievement of SDGs in the North-
finance by the Ministry of Finance, RBI and SEBI.
East region, with a North-Eastern Region (NER) District SDG
INDIA’S PROGRESS ON SUSTAINABLE DEVELOPMENT Index 2021-22 developed by NITI Aayog.
GOALS • The index is constructed from 84 indicators and covers 15 global
• India has been making strides towards achieving the social, goals, 50 SDG targets and 103 districts in the eight states of the
economic and environmental goals covered under SDGs in the North Eastern Region.
face of the considerable human and economic costs imposed by the
STATE OF THE ENVIRONMENT
COVID-19 pandemic.
• Sustainable development requires balancing rapid economic
Goal wise performance of India as a whole: NITI growth with conservation, ecological security and environmental
Aayog SDG India Index Report and Dashboard 2020- sustainability. This section explores the state of the environment
21 across land, water and air.
• India’s overall score on the NITI Aayog SDG India Index & Land Forests
Dashboard improved to 66 in 2020-21 from 60 in 2019-20
and 57 in 2018-19.
• Despite 2020-21 being a pandemic year, India performed
well on eight of the 15 SDGs measured by the NITI Aayog SDG
India Index.
Performance of States and UTs on the NITI Aayog SDG

India Index, 2021
• The number of Front Runners (scoring 65-99) increased to 22
states and UTs in 2020-21 from 10 in 2019-20. All remaining
states and UTs were Performers (scoring 50- 64).
• Amongst states, additions to the Front Runner category in Performance of States/UTs on the NITI Aayog SDG India
2020-21 included Uttarakhand, Gujarat, Maharashtra, Index (2019 and 2020)
Mizoram, Punjab, Haryana and Tripura. Amongst UTs, additions to
• Russia, Brazil, Canada, USA and China were the top five
the Front Runner category included Andaman and Nicobar
largest countries by forest area in 2020, while India was the tenth
Islands, Delhi, Jammu and Kashmir, Ladakh and
largest country by forest area.
Lakshadweep.
• Forests covered 24 per cent of India’s total geographical area
• Kerala (score of 75) retained its top rank amongst states in accounting for two per cent of the world’s total forest area in
2020-21. Tamil Nadu and Himachal Pradesh ranked 2020.
second.
• The top 10 countries account for 66 percent of the world’s forest
• Mizoram, Haryana, and Uttarakhand are the top gainers in
area.
2020-21, in terms of improvement in score from 2019, with an
23
VASAVI IAS ACADEMY
• Of these countries, Brazil (59 per cent), Peru (57 per cent),
• This increase in total forest cover is mainly attributed to an increase
Democratic Republic of Congo (56 per cent) and Russia (50 per
in very dense forest which rose by 19.54 percent between 2011 and
cent) have half or more of their total geographical area under forests.
2021. Open forest also improved by 6.71 per cent, while moderately
• India ranked third globally in average annual net gain in forest dense forest declined by 4.32 per cent between 2011 and 2021.
area between 2010 to 2020, adding approximately
• Amongst states, Madhya Pradesh (11 per cent of India’s total forest
0.38 percent of the 2010 forest area every year between 2010 to
cover) had the largest forest cover in India in 2021, followed by
2020.
Arunachal Pradesh (9 per cent), and Chhattisgarh (8 per cent),
• India’s total forest cover was 7,13,789 sq km in 2021
• Mizoram (85 per cent), Arunachal Pradesh (79 per cent) and
reflecting an increase of 3.14 per cent in the forest cover over
Meghalaya (76 per cent), were the top three states in terms of highest
2011, from 21.05 per cent of the country’s geographical area in
percent of forest cover w.r.t. total geographical area of the state in
2011 to 21.71 per cent in 2021.
2021.
Plastic Waste Management and Elimination of identified single use plastic items, which have low utility
Identified Single Use Plastics and high littering potential, by 2022.
• India is committed to mitigate pollution caused by littered single  In order to stop littering due to light-weight plastic carry
use plastics. In 2018, the Government announced that India would bags, the thickness of plastic carry bags has been increased to
phase-out single use plastic by 2022. one hundred and twenty microns with effect from December 31,
• The Hazardous and Other Wastes (Management and Transboundary 2022.
Movement) Rules, 2016 as amended regulate the import of identified  The plastic packaging waste, which is not covered under the
plastic waste into the country by SEZ and EOUs. phase out of identified single use plastic items, shall be
collected and managed in an environmentally sustainable way
• India piloted a resolution on ''Addressing Single Use Plastic Product
through the Extended Producer Responsibility of the
Pollution'' which was adopted by the Fourth United Nations
Producer, Importer and Brand Owner (PIBO), as per Plastic
Environment Assembly held in 2019.
Waste Management Rules, 2016.
• The following domestic regulatory actions have been taken in 2021:
• A National Level Taskforce has been constituted by the
 In August 2021, the Ministry of Environment, Forest and
Ministry of Environment, Forest and Climate Change for taking
Climate Change, Government of India, notified the Plastic
Waste Management Amendment Rules, 2021 prohibiting coordinated efforts to eliminate identified single use plastic
items and effective implementation of Plastic Waste Management
Rules, 2016. All States/UTs and concerned central ministries are
members of the National Task Force.
24
VASAVI IAS ACADEMY
Water • Under the Nirmal Ganga (Unpolluted Flow) component of the

Ground Water mission, 160 sewerage projects have been sanctioned to create a
cumulative treatment capacity of 5,024 MLD, reflecting a ten-
fold increase from 463 MLD through 28 projects in 2014.
• Gross Polluting Industries (GPIs) along River Ganga have
been inventoried. Since 2015, sector specific charters for
implementation of cleaner technology, upgradation of treatment
facilities and adaptation of waste minimization practices have been
implemented in the major industrial sectors like pulp & paper,
distilleries, sugar and textile by involving different stakeholders.
Air
• The Government of India launched the National Clean Air
Programme (NCAP) in 2019 to tackle the air pollution problem in
a comprehensive manner, with a target to achieve 20-30
• Ground Water Resources Assessment of states/UTs is carried out
per cent reduction in particulate matter (PM) concentrations by
jointly by state groundwater/ nodal departments and Central 2024 across the country keeping 2017 as the base year for the
Ground Water Board at periodic intervals, and the Dynamic comparison of concentration.
Ground Water Resources of India is published by compiling the
• In 2019-20, the highest funds were released to Uttar Pradesh,
state/UT wise ground water resources assessed.
followed by Maharashtra and Madhya Pradesh while in 2020-
• During the period 2009-20, units categorized as “safe”, have 21, the highest funds were released to Andhra Pradesh, Punjab and
declined from 2009 (73 per cent) to 2020 (64 per cent). West Bengal.
“Semi- critical” units have increased from 9 per cent in 2009 to • Several steps are being taken to control and minimize air pollution
15 per cent in 2020. The share of “Critical” units has remained in from various sources in the country, which inter alia include:
the range of 3-5 per cent during 2004-2020. The share of  Vehicular Emission: India has leapfrogged from BS-IV to
“Over-exploited” units accounted for 14-17 per cent of total BS-VI norms for fuel and vehicles since April, 2020. Metro
assessment units during 2004-20. In addition, approximately rail networks for public transport have been enhanced and
one per cent of assessment units have been categorized as “saline”. more cities have been covered. Cleaner/alternate fuels like
CNG, LPG and ethanol blending in petrol have been
Reservoirs introduced. Government has approved Phase-II of FAME
• The reservoir live storage is at its peak during monsoon months Scheme with an outlay of 10,000 Crore for a period of five
and lowest in summer months, requiring careful planning and years commencing from 1st April 2019.
coordination of storage, release and utilization of reservoirs.  Industrial Emission: Stringent emission norms for coal based
thermal power plants have been introduced. There is a ban on
Rivers use of imported pet coke in the country since July 2018, with
• The Ganga River Basin is the largest river basin in India, covering exception for permitted processes. Online continuous emission
more than a quarter of the country's land area, hosting about monitoring devices have been installed in highly polluting
43 per cent of its population and contributing 28 per cent of industries. Brick kilns have been shifted to zig-zag
India’s water resources. technology to reduce pollution.
• The Government of India launched the Namami Gange Mission in  Air Pollution due to dust and burning of waste: Six
2014 as an integrated and multi-sectoral mission for waste management rules covering solid waste, plastic waste, e-
conservation of Ganga and its tributaries. waste, bio-medical waste, construction and demolition
waste and hazardous waste have been notified.
Namami Gange Mission
• The total expenditure incurred under the Namami Gange Monitoring of Ambient Air Quality:
Mission was lower in 2020-21 and 2021-22 needs to be • Air quality monitoring network of manual as well as
viewed in the context of the COVID pandemic and recent continuous monitoring stations, under programmes such as
changes in accounting norms. National Air Monitoring Programme, have been expanded.
25
VASAVI IAS ACADEMY
• Air pollution remains a major concern, with 36 cities showing an

• India sought for the just transition for the developing countries with
increasing trend in PM10 concentration in 2020-2021 as
adequate time frame so that the green economy benefits are
compared to 2019-2020.
shared with all.
• In addition to the above measures, some key measures being taken
• The “Glasgow Climate Pact” urges the developed country Parties to
for reducing air pollution in Delhi / NCR are as follows:
fully deliver on the USD 100 billion mobilization goal urgently and
 A Commission on Air Quality Management in NCR and through 2025, and emphasizes the importance of transparency in
Adjoining Areas was promulgated vide ordinance dated 13th the implementation of their pledges.
July 2021 for better coordination, research, identification and
• It also decided to convene an annual high-level ministerial
resolution of problems surrounding the air quality index.
round table on pre-2030 ambition, beginning at the fourth
 To control emissions from stubble burning, under Central
session of the Conference of the Parties serving as the meeting of the
Government Scheme on ‘Promotion of Agricultural
Parties to the Paris Agreement.
Mechanization for in-situ management of Crop Residue in
the States of Punjab, Haryana, Uttar Pradesh and NCT of Delhi’. India’s NDC and its voluntary commitment on
 All diesel vehicles older than 10 years and all petrol vehicles enhanced climate action.
older than 15 years have been banned in Delhi and NCR. • India submitted its Nationally Determined Contribution (NDC)
 Expressways & Highways have been operationalized to under the Paris Agreement on a “best effort basis” keeping its
divert non-destined traffic away from Delhi. developmental imperatives in mind. India committed to (i) reduce
 Shifting industries to clean fuel and installation of Online the emission intensity of GDP by 33 to 35 per cent by 2030 as
Monitoring of Industrial Emission & Effluent systems in red compared to 2005 level; (ii) create an additional carbon sink of 2.5 to
category industries in Delhi-NCR is in progress. 3 billion tonnes of CO2 equivalent through additional forest and
• As a result of these interventions, there has been an improvement tree cover by 2030; and (iii) achieve about 40 per cent cumulative
in the air quality index for Delhi since 2016. Delhi achieved electric power installed capacity from non-fossil fuel energy
approximately 22 per cent reduction in PM2.5 and 27 per cent resources by 2030.
reduction in PM10 in 2021 as compared to 2016. • Against these targets, India’s third Biennial Update Reports
(BUR) submitted to the UNFCCC in 2021 reports that during
CLIMATE CHANGE 2005-2016, the country had reduced emission intensity of its
• India launched the National Action Plan on Climate Change GDP by 24 per cent.
(NAPCC) in 2008, establishing eight National Missions to advance • According to the India State of Forest Report 2021 released in
action on the country’s climate priorities. January 2022, the total carbon stock in the country’s forests is
• India’s climate actions, especially the adaptation efforts are largely estimated to be 7,204 million tonnes, and the carbon stock in forest
financed domestically. The National Adaptation Fund on has increased by 79.4 million tonnes as compared to the last
Climate Change (NAFCC) was launched in 2015. assessment of 2019.
• The projects focus on climate sensitive sectors such as agriculture, • According to the Central Electricity Authority, as on 31st
water, forestry as well as the coastal and Himalayan ecosystem, and December 2021, the share of non-fossil sources in installed
are being implemented to enhance the adaptive capacity of the capacity of electricity generation was 40.20 per cent.
most vulnerable sections of our population and ecosystems. • In order to coordinate India’s response on climate change, an
institutional framework of a high-level inter-ministerial Apex
Major decisions at the COP26 Climate Summit, Committee for the Implementation of Paris Agreement
Glasgow (AIPA) has been created.
• The 26th Session of the Conference of the Parties (COP 26) to the
UNFCCC was held under the UK Presidency in Glasgow from 31st FINANCE FOR SUSTAINABLE DEVELOPMENT
October – 13th November 2021. Dealing with Financial Risks associated with Climate Change
• The COP26 adopted outcomes on all pending issues of the “Paris • In May 2021, the Reserve Bank of India (RBI) set up a new
Rule Book”, which is the procedures for implementation of the Paris unit–‘Sustainable Finance Group’ (SFG) within its Department
Agreement, including market mechanisms, transparency, and of Regulation to effectively counter these risks, and for leading the
common timeframes for NDCs. regulatory initiatives in the areas of sustainable finance and climate
risk.
• To assess the progress of its regulated entities in managing climate
risk, RBI is preparing a consultative discussion paper covering, inter
alia, (i) governance, (ii) strategy, (iii) risk management, and (iv)
disclosure.
26
VASAVI IAS ACADEMY
Augmenting Finance for Sustainable Development International Solar Alliance (ISA)

• In January 2021, a Task Force on Sustainable Finance was set up by
• In November 2021, the Hon’ble Prime Minister launched the
the Department of Economic Affairs, Ministry of Finance,
joint Green Grids Initiative- One Sun One World One Grid
Government of India.
(GGI –OSOWOG) at the World Leaders’ Summit in Glasgow.
• India is actively contributing to the global efforts towards green • A joint GGI-OSOWOG Secretariat is being planned to be
finance. RBI joined the Central Banks and Supervisors Network established at the ISA Secretariat to mobilize political support and
for Greening the Financial System (NGFS) as a member on April render technical support for the initiative.
23rd, 2021 and has begun participating in the work streams of the
• ISA has attained a Permanent Observer Status at the UN General
NGFS.
Assembly.
• The liberalized External Commercial Borrowings (ECB) norms of
• ISA is mandated to facilitate mobilization of USD 1 trillion in
RBI have enabled the Indian renewable energy companies and
solar investments by 2030 for massive scale-up of solar
other firms to tap the ECB route for raising finance through
energy deployment. The Strategic Plan of the ISA for 2021-
green bonds and sustainable bonds, reflecting the growing
2026 identifies three key global issues – Energy Access,
attractiveness of this route for raising finance.
Energy Security, and Energy Transition.
• India is also a part of several bilateral and global sustainable finance
initiatives. RBI is a member of a Task Force on Climate- Coalition for Disaster Resilient Infrastructure
related Financial Risks set up by the Basel Committee on • India’s call for promoting disaster resilience of infrastructure
Banking Supervision, and the International Platform on Sustainable through the Coalition for Disaster Resilient Infrastructure
Finance. (CDRI) has been receiving global attention.
• In addition to India’s seed funding of USD 70 million, the United
Investing in Resilience for Sustainable Development
Kingdom, United States and the Netherlands have pledged GBP 1
• SEBI has been one of the early adopters of sustainability reporting million, USD 9.2 million and 100,000 Euro respectively for CDRI’s
for listed entities and requires mandatory ESG related programmes and projects.
disclosures as part of the Business Responsibility Report (BRR), for
• In March 2021, the third International Conference on Disaster
the top 100 listed entities (by market capitalisation) since 2012.
Resilient Infrastructure (ICDRI) was launched, which discussed
• The above requirement of filing BRR was progressively
key global issues around resilience of critical infrastructure
extended to the top 500 entities (from financial year 2016-17)
sectors.
and later to the top 1000 listed entities (from the financial
• In November 2021, the Infrastructure for Resilient Island States
year 2019-20).
(IRIS) was launched. This is a dedicated intiative for Small Island
• The Business Responsibility and Sustainability Report
Developing States (SIDS) that provides quality technical and
(BRSR) which shall replace the existing BRR to bring in greater
financial services to make SIDS infrastructure resilient to
transparency through disclosure of ESG-related information and
climate change and disaster events.
by enabling market participants to identify and assess
sustainability-related risks and opportunities. Leadership Group for Industry Transition (LeadIT
• The BRSR shall be applicable to the top 1000 listed entities (by Group)
market capitalization) on a mandatory basis from FY 2022–23; • LeadIT was launched by India and Sweden, with the support
however, entities can choose to adopt it on a voluntary basis of the World Economic Forum at the UN Climate Action Summit in
from FY 2021–22. New York in September 2019, as one of the nine action tracks
identified by the UN Secretary-General to boost climate
INDIA’S INITIATIVES AT THE INTERNATIONAL STAGE ambitions and actions to implement the Paris Agreement.
Lifestyle for Environment (LIFE)
• In November 2021, a One-Word Movement in the context of CONCLUSION
climate: LIFE - Lifestyle for Environment, at the COP 26 was • India’s performance on the NITI Aayog SDG India Index has
proposed in Glasgow. improved from an overall score of 60 in 2019-20 to 66 in
• This movement calls for coming together with collective 2020-21. India has also been making significant strides in
participation, to take lifestyle for the environment forward as a increasing its forest area, ranking third globally in net gain in
campaign and as a mass movement for environmentally conscious forest area during the decade (2010-20). Much of India’s
lifestyle. increase in forest cover during 2011-21 is attributed to
enhancement in very dense forest cover, which rose by
27
VASAVI IAS ACADEMY
07 REGULATORY FORBEARANCE: AN
EMERGENCY MEDICINE, NOT STAPLE DIET!
CHAPTER
Introduction
• The agriculture sectorMajor Highlights
has experienced buoyant growth in the past
India runs one of the largest food management programs in the world.
• two
The years.
net receipts from crop
The sector, production
which is the alone
largesthave increased
employer of bythe
The Government has further extended the coverage of food security
22.6 percentaccounted
workforce, as compared
for to
a the previous
sizeable 18.8SAS Report(2021-
percent of 201422)
networks through additional provisions of food grains through the
inalthough there is
Gross Value a visible
Added (GVA)diversification in the registering
of the country sources of a
schemes like PM Gareeb Kalyan Yojana (PMGKY).
income of
growth of 3.6
the farmers.
percent in 2020-21 and 3.9 percent in 2021-
Natural farming in India is being promoted through a dedicated
• 22.
TheGrowth
livestockinsector
alliedhassectors
grown including
at a CAGRlivestock, dairying, and
of 8.15 percent
fisheries has been the major drivers of overall growth in the scheme of the Bharatiya Prakritik Krishi Paddhati Programme (BPKP).
over the last five years ending 2019-20.
sector. The scheme promotes on-farm biomass recycling with major stress
• Dairy is the single largest agricultural commodity contributing 5
on biomass mulching, use of on-farm cow dung-urine
percent of the national economy and employing more than 8
formulations, periodic soil aeration, and exclusion of all synthetic
crore farmers directly. India is ranked 1st in milk production
chemical inputs.
contributing 23 percent of global milk production. Milk
production in the country has grown at a compound annual India is the second-largest fish-producing country in the world
growth rate of about 6.2 percent accounting for 7.56 percent of global production. It contributes
• The sector has been a stable source of income across groups of about 1.24 percent to the country’s GVA and over 7.28 percent to
agricultural households accounting for about 15 percent of their the agricultural GVA.
average monthly income. The fisheries sector has demonstrated an outstanding double-
digit average annual growth of 10.87 percent since 2014-15.
Government launched a new flagship scheme of 20,050 crores
called Pradhan Mantri Matsya Sampada Yojana (PMMSY) in May
2020 as a part of the ANB Package. Under PMMSY, key
interventions include enhancing fish production and
productivity, modernizing and strengthening the value chain,
creating fisheries and post- harvest infrastructure, and
developing robust fisheries management and regulatory
frameworks.
The scheme aims to create a conducive environment for private
sector participation and promotes the dynamic development of
innovative entrepreneurial ventures and viable business models
in the fisheries sector.
GROSS VALUE ADDED (GVA) IN AGRICULTURE

• The share of the sector in total GVA of the economy has
a long-term trend of around 18 percent. The share of the
agriculture & allied sector in total GVA, however, improved to
20.2 percent in the year 2020-21 and 18.8 percent in 2021-
22.
• The Gross Capital Formation (GCF) in agriculture and allied sectors
relative to GVA in the sector has been showing a fluctuating
trend Fluctuation in the GCF in the sector arises
28
VASAVI IAS ACADEMY
mainly because of wide fluctuations in private investment in

between agricultural and non-agricultural sectors, the likely
agriculture and allied sectors. effect on the rest of the economy, besides ensuring rational
• While public investment has remained stable between 2-3 utilization of land, water, and other production resources and a
percent over the years, the private investment has fluctuated minimum of 50 percent as the margin over the cost of production.
and the total agricultural GCF has moved in sync with variation in • Government has announced the increase in MSP for all mandated
private investment. Kharif crops of the year 2021-22. The highest increase in MSP
Note: has been recommended for lentil (Masur) and rapeseed &
• The oilseed production in India has grown by almost 43 mustard at 400 per quintal each followed by the gram at 130
percent from 2015-16 to 2020-21. per quintal and safflower at 114 per quintal.
• India is the world’s second-largest consumer and number
one importer of vegetable oil. Sweet Revolution
• India is the largest consumer and the second-largest • Keeping in view the importance of beekeeping as part of the
producer of sugar in the world. Integrated Farming System (IFS) in the country, the
• Sugarcane Industry is the country’s second-largest agro- government approved the allocation of 500 crores for the
based industry, next to cotton. National Beekeeping & Honey Mission (NBHM) for three years
• The overall stage of groundwater development (ratio of annual (2020-21 to 2022-23).
groundwater draft and net annual groundwater availability) in the • NBHM aims for the overall promotion & development of
country is 63 percent. scientific beekeeping in the country to achieve the goal
• This ratio which signifies the rate of extraction of of ‘Sweet Revolution’ which is being implemented through the
groundwater, is very high (more than 100 percent) in the states of National Bee Board (NBB).
Delhi, Haryana, Punjab, and Rajasthan. Himachal • India’s export of honey has increased by about 110
Pradesh, Tamil Nadu, Uttar Pradesh percent between 2013-14 to 2019-20.
• National Mission on Edible Oils - Oil Palm (NMEO-OP) has been
launched to augment the availability of edible oil in the country by
Recent Initiatives in Animal Husbandry and Dairy
harnessing area expansion and through price incentives. Under the
Sector
scheme, for the first time, Government will give price assurance
• National Animal Disease Control Programme
to the oil palm farmers for the Fresh Fruit Bunches (FFBs). This
will be known as the Viability Price (VP) which will protect the  National Animal Disease Control Programme (NADCP), which
farmers from the fluctuations of the international crude palm oil is the largest ever vaccination program carried out either for
(CPO) prices. human or animal vaccination in the world, is being
implemented to control and eventually eradicate the Foot &
Price Policy: Minimum Support Price (MSP) Mouth Disease (FMD) and Brucellosis by 2030.
• The Government’s price policy for major agricultural commodities • Animal Husbandry Infrastructure Development Fund (AHIDF)
seeks to ensure remunerative prices to the growers for their produce  As part of the ANB stimulus package, the Animal Husbandry
to encourage higher investment and production and thereby to Infrastructure Development Fund (AHIDF) worth Rs 15,000
safeguard the interest of consumers by making available supplies at crore was launched in 2020.
reasonable prices.  AHIDF facilitates investments in the establishment of
• The Government fixes the MSP of 22 mandated crops based infrastructure for dairy and meat processing and the
on the recommendations of the Commission for Agricultural Costs establishment of animal feed plants by the FPOs, individual
& Prices (CACP) and after due consideration of the views of State entrepreneurs, MSME, Section 8 companies, and private
Governments and the concerned Central Ministries/ Departments. companies.
• The 22 mandated crops include 14 Kharif crops viz. paddy, jowar,  Under this scheme the Central Government provides 3 percent
bajra, maize, ragi, tur (arhar), moong, urad, groundnut, soybean interest subvention to the borrower and credit guarantee up to 25
(yellow), sunflower seed, sesamum, Niger seed, cotton, and 6 percent of total borrowing.
Rabi crops viz. wheat, barley, gram, Masur (lentil), rapeseed and
mustard, safflower and 2 commercial crops viz. jute and copra. FOOD PROCESSING SECTOR
• Important factors while deciding MSP are the cost of • During the last five years ending 2019-20, Food Processing
production, overall demand-supply conditions, domestic Industries (FPI) sector has been growing at an average annual
and international prices, inter-crop price parity, terms of growth rate of around 11.18 percent. The sector constituted as
trade much as 9.87 percent of GVA in manufacturing in 2019-20 at
2011-12 prices.
29
VASAVI IAS ACADEMY
• In FPI, 100 percent FDI is permitted under the automatic route.

• Ethanol Blended with Petrol (EBP) Programme: The
However, in the case of trading in respect of food products
Government has now set a 20 percent ethanol blending target for
manufactured and/or produced in India including through e-
mixing ethanol with petrol to be achieved by 2025.
commerce, 100 percent FDI is allowed under the Government
 It is estimated that the blending target at 10 percent would be
approval route.
achieved during 2022. To achieve these targets, the Government
has allowed the production of ethanol from different
Food Management
feedstocks viz B-Hy & C-Hy molasses, cane juice, sugar
• Fortification of Rice and its Distribution: The Government of
syrup, sugar, and damaged food grains including surplus FCI
India approved the Centrally Sponsored Pilot Scheme ‘Fortification
rice, maize, etc. by the distilleries either attached with sugar
of Rice and its Distribution under Public Distribution System’ on
mills or standalone.
14.02.2019 for 3 years beginning 2019-20. The Pilot Scheme is
 The ethanol blending target for ESY 2021-22 is 10 percent
being implemented in 15 Districts (1 District per State).
which is to progressively increase to 20 percent by the year
 Eleven states including Andhra Pradesh, Gujarat, Maharashtra, 2025.
Tamil Nadu, Chhattisgarh, Uttar Pradesh, Odisha, Telangana,
Madhya Pradesh Uttarakhand, and Jharkhand have started Conclusion
distributing the fortified rice in their identified districts • The increasing importance of allied sectors including animal
under the pilot scheme. husbandry, dairying, and fisheries in the growth and income
 The Government has started distributing fortified rice of the farmers indicates that focus needs to shift more towards
under the Integrated Child Development Scheme and PM harnessing the potential of allied activities. There is also a need to
Poshan schemes across the country during 2021-22 to improve the productivity of small and marginal farmers through the
scale up the distribution of fortified rice in the country to development and implementation of smallholding farm technologies.
fight malnutrition and micronutrient deficiencies among While the Government has adopted the use of MSP as a signal to
pregnant women, lactating mothers, children, etc. encourage crop diversification, there is also a need for
• One Nation One Ration Card: Under the scheme “Integrated coordinated action from the State Governments to facilitate the
Management of Public Distribution System" which was started shift to high value and less water consuming crops to enable the
during 2018-19 and 2019-20, the One Nation One Ration realization of the objective of doubling farmers’ income
Card (ONORC) System has been launched. The validity of the sustainably. The increase in agriculture R & D therefore may
scheme has been extended to 31.03.2023 from the existing improve productivity in the crop and allied sectors. However in
31.03.2022. terms of the use of fertilizers focus should be on the use of new
technology including drones and AI-based decision support
systems, reduction in the use of chemical fertilizers, and use of
low-cost organic inputs, and supporting start-ups for
innovations.
30
VASAVI IAS ACADEMY
INNOVATION: TRENDING UP BUT NEEDS

08 THRUST, FROM THE PRIVATE SECTOR
CHAPTER
Introduction negative growth of 0.7 growth in October 2020.

• Global Industrial activity continued to be affected by the • Certain industries such as mining, textiles, petroleum, coal products
disruptions caused by the COVID-19 pandemic. While the and nuclear fuels, rubber, plastic, and infrastructure have shown
Indian industry was no exception to these disruptions, its consistent improvement in credit growth.
performance has improved in 2021-22. Note:
• Gradual unlocking of the economy, record vaccinations, • Capacity utilization (CU) is an important economic indicator to
improvement in consumer demand, continued policy support assess the demand and investment prospects of the economy.
towards industries by the government in the form of CU rates are largely able to track the pace of manufacturing
AtmaNirbhar Bharat Abhiyan, and further reinforcements in activities in the economy.
2021-22 have led to an upturn in the performance of the
• The growth rate of the IIP-manufacturing index and
industrial sector.
capacity utilization provides a snapshot of the demand conditions
• The growth of the industrial sector, in the first half of 2021- for India’s manufacturing sector.
22, was 22.9 percent vis a vis the corresponding period of
• Another indication of optimism about the economic performance
2020- 21and is expected to grow by 11.8 percent in this
is the RBI’s Business Expectation Index (BEI).
financial year.
• This index gives a glimpse of the demand conditions in the
Index of Industrial Production (IIP) manufacturing sector by combining parameters which include
overall business situation, production, order books, inventory
• The industrial performance has shown improvement as reflected in
of raw material and finished goods, profit margin,
the cumulative growth of the IIP. During April- November
employment, exports, and capacity utilization.
2021-22 the IIP grew at 17.4 percent as compared to (-) 15.3
percent in April-November 2020-21.
Eight Core Index (ICI) FDI Policy reforms and Other Measures during the
• The monthly Index of Eight Core Industries (ICI) measures the Covid-19 Pandemic period
collective and individual performance of production in selected • The changes in the FDI policy can be broadly categorized into
eight core industries like Coal, Crude Oil, Natural Gas, measures taken to improve foreign participation while protecting
Refinery Products, Fertilizers, Steel, Cement, and Electricity. Indian industry from opportunistic takeovers, to enhance
• This is an index of the eight most fundamental industrial sectors of transparency and rationalization of processes, and steps to monitor
the Indian economy and comprises 40.27 percent of the weight in and expedite implementation.
IIP. • Measures are taken to allow greater foreign participation.
• The growth rate of the ICI index during the period of April-  Defense Sector: The FDI policy amendments, notified
November2021-22was 13.7percent as compared to (-) 11.1 vide Press Note 4 (2020 series) dated 17.09.2020, have been
percent in the corresponding period of the last financial year. carried out to realize the vision of an AtmaNirbhar Bharat.
 Now, FDI in the defense sector is allowed up to 74 percent
• Fertilizers and crude oil registered a negative growth of 0.6 percent
through automatic route (from earlier 49percent) for companies
and 2.7 percent respectively.
seeking new industrial licenses.
GROSS FIXED CAPITAL FORMATION  Insurance Sector: permissible FDI limit from 49percent to
• Gross fixed capital formation (GFCF) is the gross addition to 74percent in Insurance Companies under the automatic route and
allow foreign ownership and control with safeguards.
fixed assets like machinery and equipment, intangible assets
and indicates the state of investments in the economy.  Petroleum & Natural Gas sector: foreign investment up to
100percent under the automatic route in cases where
• Gross bank credit to the industrial sector, recorded a growth
of 4.1 percent in October 2021 (Y-o-Y basis) compared to a
31
VASAVI IAS ACADEMY
the Government has accorded ‘in-principle’ approval for

• Textiles: Textile industry is the second-largest employment
strategic disinvestment of a Public Sector Undertaking (PSU)
generator in the country, next only to agriculture. , it has shown a
engaged in the Petroleum and Natural Gas Sector.
remarkable recovery with a positive contribution to growth, as
 Telecom sector: foreign investment up to 100percent under
reflected by IIP, of 3.6 percent during April October 2020.
automatic route in Telecom services sector.
• Production-Linked Incentive (PLI) Scheme for Man-
• Curbing opportunistic acquisitions/takeovers: vide Press
Made Fibre (MMF) segment and technical textiles, notified
Note 3 (2020) dated 17.04.2020, the Government amended the FDI
in September 2021, for enhancing India’s manufacturing capabilities
policy according to which an entity of a country, which shares a
and enhancing exports.
land border with India or where the beneficial owner of
• Further in major support to enhance the competitiveness of the
investment into India is situated in or is a citizen of any such
sector, the government notified the setting up of 7 PM MEGA
country, can invest only under the Government route.
INTEGRATED TEXTILES REGION AND APPAREL PARK
• Measures to improve transparency and to rationalize processes
(MITRA) in October 2021.
include amendment of the Standard Operating Procedure
(SOP) to improve ease of processing FDI proposals. Champion Portal
• ‘FDI Monitoring Cell’ has been formed which follows up with • The CHAMPIONS portal (www.champion.gov.in) is an ICT-
applicant/ investor, to expedite FDI proposals with a view to based technology system for making the smaller units big
identifying hurdles if any. An Inter-Ministerial Committee by helping and handholding them.
(IMC) has been constituted under the Chairpersonship of Secretary, • The key features of the portal include:
Department for Promotion of Industries and Internal Trade to take
• Information dissemination: Regular updates on recent
appropriate decisions on delayed proposals and those escalated by
development in the MSME sector.
Administrative Ministries/ Departments.
• With a view to resolving the grievances in a fast track manner,
SECTOR-WISE PERFORMANCE AND ISSUES IN all Nationalised Banks, a good number of Private/ Regional
INDUSTRY Rural Banks, State Financial Corporations, Central Government
• Steel: The performance of the steel industry is pivotal for the Ministries/ Departments, State Governments, and CPSEs have
growth of the economy. The steel industry has bounced back with an been on-boarded on the portal.
increase of 25.0percent and 28.9percent respectively. • Scheme/Programme-wise mapping of officials of the
• Coal: Coal is the most important and abundant fossil fuel in Ministry for fast-track responses of grievances.
India and accounts for a 55percent of the country’s energy • Integration with various portals such as MSME Samadhaan,
needs. Coal production increased by 12.24 percent in April- Udyam Registration, CPGRAM, etc.
October 2021 as compared to (-) 3.91 percent in April-
October 2020.
PARAKH - A Unified Laboratory Network
• Micro Small Medium Enterprise: Micro, Small &
Medium Enterprises (MSMEs) contribute significantly to • Recognizing that testing and certification are crucial
the economic and social development of the country by fostering for enhancing the competitiveness of Indian goods and services,
entrepreneurship and by generating employment opportunities. The a portal called “PARAKH” has been set up in June 2021,
relative importance of MSMEs can be gauged from the fact that wherein all the accredited, certified and recognized
the share of MSME GVA in total GVA (current prices) for laboratories in the country would be mapped on a Geographic
2019-20 was 33.08 percent. Information System (GIS).
• New Definition of MSME • This united laboratory network has been developed with the
support of the Ministry of Electronics and Information
Technology (MEITY), Bhaskaracharya National Institute of
Space Applications and Geo-Informatics, Gujarat (BISAG),
and the concerned line ministries/ departments of the
Government of India.
32
VASAVI IAS ACADEMY
Production Linked Incentives Schemes Connecting PILLARS OF INDIA PM-GATI SHAKTI

• PLI Schemes launched in March 2020, are a cornerstone • Another milestone achieved that has heralded a new chapter in
of the Government’s push for achieving an AtmaNirbhar Bharat. governance is the PM Gati Shakti an integrated plan ensuring
• The idea is to provide support to the sectors, regain dominance in multi-modal and seamless connectivity for people, goods,
global trade and be more prepared for the volatilities and shocks and services. It covers16 ministries and infrastructure like
in global supply chains as opposed to the protectionist Bharatmala, Sagarmala, inland waterways, dry/land ports,
approach of the pre-1991 era. UDAN, etc. It is also expected to include social infrastructures
• The objective of the scheme is to boost domestic manufacturing like hospitals and universities.
in sunrise and strategic sectors, improve the cost • GATI-SHAKTI will improve connectivity and make Indian
competitiveness of domestically manufactured goods, and businesses more competitive. It will also leverage technology
enhance domestic capacity and economies of scale. extensively including spatial planning tools with ISRO
imagery developed by Bhaskaracharya National Institute for
Space Applications and Geoinformatics
• PM MITRA inspired from 5F’s -farm to fiber; fiber to factory;

factory to fashion; fashion to foreign -will strengthen the Transitioning to clean energy
textile sector by developing integrated large scale and modern
• The two main pillars for mitigation action to achieve net-
industrial infrastructure facility for entire value-chain of the
zero carbon ambition are transition to clean and renewable
textile industry.
sources of energy and storage of this energy.
 Pharmaceuticals: Indian Pharmaceutical industry ranks third
in the world in pharmaceutical production by volume. India is • The World Bank in its report Minerals for Climate Action has in
the largest supplier of generic medicines with a 20percent share its report mentioned that this transition from conventional
in the global supply. fossil fuel-based energy to clean energy as well as
 Price competitiveness and good quality has enabled battery storage will be more mineral intensive. Minerals and
Indian medicines producers to be dominant players in the world metals like copper, aluminium, iron, manganese, nickel, etc. are
market, thereby making the country the “Pharmacy of the critical for developing clean energy sources like solar PV,
world”. wind, nuclear while minerals like lithium and graphite are
important for energy storage.
INFRASTUCTURE
• Public-Private Partnership in infrastructure has been an Conclusion
important source of investment in the sector. As per the database of Initiatives under Atma Nirbhar Bharat including introduction of structural
the World Bank on private participation in infrastructure, India is
and procedural reforms, record vaccinations, various PLI scheme
ranked second among developing countries both by the number of
designed to attract investments in sectors of core competency and
PPP Projects as well as the associated investments.
cutting edge technology, Make-in-India programme to boost domestic
• The government launched the Viability Gap Funding (VGF) manufacturing capacity, reduction of corporate tax rate, etc. and steps
scheme for providing financial assistance to financially to improve operational efficiency have helped the industrial sector to
unviable but socially/ economically desirable PPP projects.
keep up its ante. The sector has started to recover steadily and according
• The Government of India has in November 2020 approved the to the National Statistical Office, is expected to grow at 11.8 percent
continuation of and revamping of the Scheme for Financial in 2021-22.
Support to Public-Private Partnerships (PPPs) in The recovery of the industrial sector, positive business expec-
Infrastructure Viability Gap Funding (VGF) Scheme till tations propelled by extensive reforms and improved consumer demand,
suggests that further improvements in the industrial performance can
2024- 25.
be expected.
33
VASAVI IAS ACADEMY
JAY HO:
09 AYUSHMAN BHARAT'S JAN AROGYA
CHAPTER YOJANA (JAY) AND HEALTH OUTCOMES
Introduction hotels, transport, communication & services related to broadcasting.

The services sector contributes over 50 percent to India’s GDP. • The sub-sector ‘Public administration, defences & other
While the Covid-19 pandemic has hurt most sectors of the services’ includes expenditure by the government on one hand and
economy, the services sector has been the worst affected as its’ services such as health, education, recreation, etc., on the other,
share in India’s GVA declined from 55 percent in 2019- 20 to contracted by 4.6 percent YoY in 2020-21.
53 percent in 2021-22. The impact has been much severe on • The relatively less contact intensive sub-sector ‘Financial,
contact-based services such as tourism, retail trade, hotel, real estate & professional services’ was the least impacted, with a
entertainment, recreation, etc. marginal decline of 1.5 percent YoY in its GVA during 2020-21.
Major Highlights
• During the first half of 2021-22, the Services sector grew
by 10.8 percent.
• GVA of ‘Trade, hotels, transport, communication & services
related to broadcasting’ remains below its pre-pandemic
level. The overall Services sector GVA is expected to grow
by 8.2 percent in 2021-22.
• High-frequency indicators such as services purchasing
managers’ index, air freight, and rail freight bottomed out in
2020. The global issue of container shortage is impacting port
• Gross Value Added (GVA) of the services sector is estimated
traffic.
to grow by 8.2 percent in 2021-22. Sub-sectors ‘Trade,
• Services exports grew by 21.6 percent, deriving strength from hotels, transport, communication & broadcasting services’,
global demand for software and IT services exports. India’s share ‘Financial, real estate & professional services, and ‘Public
in world commercial services exports increased to 4.1 percent in administration, defence & other services’ are estimated to
2020. expand by 11.9 percent, 4 percent, and 10.7 percent respectively in
• The Government undertook a major reform of removing telecom 2021-22.
regulations in the IT-BPO sector. As per a survey conducted
by NASSCOM, these reforms have reduced compliance burden, SERVICES SECTOR SHARE AT THE STATE AND UT LEVEL
enhanced productivity, increased global competition, and • The services sector accounts for more than 50 percent of the Gross
lowered the cost of doing business in India. State Value Added (GSVA) in 12 out of the 33 states and
• During the first half of 2021-22, the Services sector UTs.
received over US$ 16.7 billion FDI accounting for almost 54 • Chandigarh stands out with a particularly high share of services in
percent of the total FDI inflows into India. GSVA at 74 percent while Sikkim’s share remains the lowest at
• India has become the third-largest start-up ecosystem in 24.25 percent.
the world after the US and China. Further, a record 44 Indian • Notably, the Services share in Sikkim’s GSVA has increased
start-ups have achieved unicorn status in 2021 taking the from over 18 percent in 2018-19 to over 24 percent in 2020-
overall tally of unicorns in India to 83, most of these are in the 21.
services sector. • Sikkim achieved the highest growth of 11.71 percent in
services GSVA during 2020-21.
IMPACT OF COVID-19 AND SEQUENTIAL RECOVERY FDI INFLOWS INTO THE SERVICES SECTOR
• The services sector contracted by 8.4 percent Year on Year • The services sector is the largest recipient of FDI inflows in
(YoY) in 2020-21. This decline was driven by a sharp India. According to the World Investment Report 2021 by the
contraction of 18.2 percent YoY in the sub-sector ‘Trade,
34
VASAVI IAS ACADEMY
UN Conference on Trade and Development (UNCTAD), India was

stringent and restrictive as they involved considerable paperwork,
the fifth-largest recipient of Foreign Direct Investment (FDI) in
required permissions for every drone flight, and very few “free
2020 improving its rank by four places, from the ninth position in
to fly” green zones were available.
2019.
Key features of Drone Rules 2021 include:
• In 2020-21, India registered the highest ever annual FDI
• Several approvals were abolished; with the total forms to
inflows of US$ 81.97 billion.
be filled reduced from 25 to 5: Various approvals such as
TRADE-IN SERVICES SECTOR unique authorization number, unique prototype identification
• In 2021 so far, world trade in services has shown signs of recovery number, certificate of manufacturing, and operator permit,
as a result of worldwide extensive inoculation and resumption in etc. have been done away with. Certain exemptions have also been
introduced for Nano/micro drones.
global economic activity.
• According to WTO, global services trade returned to positive
growth territory in April-June 2021, rising 26 percent YoY
largely reflecting the rebound from the same period last year,
the quarter in which the strongest impact due to Covid-19
was felt.
 Services exports: India has a dominant presence in global

services exports. It remained among the top ten services exporter
countries in 2020, with its share in world commercial services
exports increasing from 3.4 percent in 2019 to 4.1 percent in • Type of fees reduced from 72 to 4.
2020. • Extended applicability of rules
 Services imports: India’s services imports exhibited a • Simplified and accessible certification process
sharper decline of 8.4 percent in 2020-21 in comparison
• Prior security clearance removed
with services exports primarily on account of a fall in travel and
• Expanded area of drone operations
transportation payments. During H1 2021-22, the growth
• Relaxations on foreign companies
of services imports was 20.7 percent on account of relaxation
• No remote pilot license required
in lockdown restrictions and resumption in domestic economic
activity. • Relaxations for Research and Development (R&D)
• Reduced penalties
Sagarmala Programme
• The Sagarmala program is the flagship program of the Start-ups
Ministry of Ports, Shipping, and Waterways to promote port-led • Startups in India have grown remarkably over the last six years,
most of these belong to the services sector.
development in the country by taking advantage of India’s
7,500 km long coastline, 14,500 km long potentially navigable • India had a record number of start-ups (44) reach unicorn
waterways, and the strategic location on major maritime trade status in 2021. It overtook the UK to emerge as the third highest
routes country in a number of unicorns after the US and China which
added 487 and 301 unicorns respectively in 2021.
Note: India accounts for only about 2 percent of the space • As of January 14, 2022, India has 83 unicorns with a total valuation
economy, much behind the major players – USA and of US$ 277.77 billion.
China. • Over the recent years, Delhi has replaced Bangalore as the startup
capital of India.
Drone Rules, 2021
• With a total of 11,308 startups, Maharashtra has the highest number
• In March 2021, the Ministry of Civil Aviation (MoCA) published
of recognised startups.
the UAS Rules, 2021. These Rules were considered too
35
VASAVI IAS ACADEMY
THE BARE NECESSITIES

10
CHAPTER
Introduction: Health Organisation (WHO) guidelines and global best

• The need for a strong and resilient social infrastructure became practices, India’s National COVID Vaccination Program has
even more important during the ongoing COVID-19 pandemic been one of the world’s largest vaccination programs.
that brought into focus the vulnerabilities in social infrastructure • National Expert Group on Vaccine Administration for
across countries. Specifically, pandemic posed the challenge of COVID-19 (NEGVAC) on the basis of concurrent scientific
balancing livelihoods while saving lives. To save lives and evidence guided the program. The program was envisioned to
livelihoods amidst the COVID-crises, countries have adopted vaccinate all eligible beneficiaries aged 18 years and above
various strategies. India, the country with the second largest in the shortest possible time.
population and a large elderly population, adopted a multi-
pronged approach. Availability of Vaccine:
• Given the nature of pandemic, the health response including
vaccination strategy remained critical. India, one of the young
nations in the world, also faced the challenge to sustain the learning
outcomes in schools, building skills and reskilling population,
employment and livelihood to one of the largest labour forces in the
world. Government’s response through ‘Aatma Norther Bharat
Abhiyan’ packages and other sector specific initiatives have
provided the necessary support to mitigate the adverse impact of
pandemic.
INDIA’S HEALTH RESPONSE TO THE COVID-19

• Like most other countries, India also faced two COVID-19
waves: first in 2020 and second in 2021.
• The country started with two Made in India COVID vaccines.
• During the first-wave, the cumulative number of COVID-19
India’s first domestic COVID-19 vaccine, Whole Virion
cases started rising progressively from the month of May 2020,
Inactivated Coronavirus Vaccine (COVAXIN), was developed
and peaked in mid-September 2020.
and manufactured by Bharat Biotech International Limited
• Thereafter, the country faced a massive surge in COVID-19 in collaboration with National Institute of Virology of Indian
cases starting March 2021, with a peak of more than four lakhs Council of Medical Research (ICMR).
daily cases1 in May 2021 and more than 4400 daily deaths by the • The ICMR funded the clinical trials of the COVISHIELD vaccine
end of May 2021.
developed in collaboration with Oxford – AstraZeneca.
• A fresh surge of cases and a new variant Omicron had surfaced in
• Besides, manufacturing of COVID-19 vaccines viz., Sputnik-V,
December 2021 and was spreading at the time of writing.
ZyCoV-D, recombinant (Ad26.COV2-S) have also been
• To save lives, the Government adopted a multi-pronged given emergency use authorization by the regulatory authority.
approach viz., (i) restrictions/partial lockdowns, (ii) building Moreover, import of COVID-19 Vaccines viz., Sputnik-V,
capacity in health infrastructure, (iii) COVID-19 appropriate Moderna, and recombinant (Ad26.COV2-S) have also been
behavior, testing, tracing, treatment, and (iv) vaccination drive. permitted.
COVID Vaccination Strategy Pricing and equity

• Guided by scientific and epidemiological evidence, World • At all Government COVID-19 Vaccination Centres (CVCs),
COVID-19 vaccines were made available free of cost for all
eligible citizens. Except for about 4-5 percent of total doses
36
VASAVI IAS ACADEMY
administered in the country, rest have been administered at

25 percent of the total Government expenditure (Centre and
Government COVID-19 Vaccination Centres.
States taken together). In 2021-22 (BE), it was 26.6 percent.
• Technology driven: Arogya Setu mobile app was launched to
• Expenditure on the health sector increased from 2.73 lakh crore in
enable people to assess themselves the risk of their catching the
2019-20 (pre-COVID-19) to ` 4.72 lakh crore in 2021- 22 (BE),
COVID-19 infection. It calculates the risk of infection based on a
an increase of nearly 73 percent. For the education sector, the
person's interaction with others, using Bluetooth technology, increase during the same period was 20 percent.
algorithms and artificial intelligence.
• The Central and State Governments’ budgeted expenditure on
• Co-WIN 2.0 (along with e-VIN), a unique digital platform, the health sector reached 2.1 percent of GDP in 2021-22,
supported the real-time vaccination activities viz., registration against 1.3 percent in 2019-20.
for vaccine, tracking COVID-19 vaccine status of every
beneficiary, stocks of vaccine, storage, actual vaccination EDUCATION
process, and generation of digital certificates. • During initial COVID-19 restrictions, as a precautionary
• Vaccination Progress: As on 16th January 2022, a total of measure to protect the students from COVID-19, schools
156.76 crore doses of COVID-19 vaccines have been and colleges were closed across India. This posed a new challenge
administered: 90.75 crore first dose and 65.58 crore second for the Government in terms of continuity of education.
dose. Vaccination speed increased significantly once the • Basic facilities in schools also improved in 2019-20 over
population between ages 18 to 45 years was permitted earlier years. Toilets (girls or boys), drinking water, and hand-
washing facilities are now available in most Government schools
TRENDS IN SOCIAL SECTOR EXPENDITURE (10.32 lakh). Priority to drinking water and sanitation in schools
• Government’s spending on social services increased under Jal Jeevan Mission, Swachh Bharat Mission as well as
significantly during the pandemic. under Samagra Shiksha Scheme have been instrumental in
• In 2021-22 (BE), Centre and State governments earmarked providing required resources and creating these assets in
an aggregate of ` 71.61 lakh crore for spending on social service schools.
sector; an increase of 9.8 percent over 2020-21. • As on 19.01.2022, Further, availability of teachers, measured by
• Last year’s (2020-21) revised expenditure has also gone Pupil Teacher Ratio, an indicator whose decrease signals
up by 54,000 crores from the budgeted amount. In 2021-22 improvement in quality of education, has improved at all
(BE), funds to the sector increased to 8.6 percent of Gross Domestic levels continuously from 2012-13 to 2019-20: from 34 to 26
Product (GDP) (8.3 percent in 2020-21). at primary, 23 to 18 at upper primary, 30 to 18 at secondary, and 39
to 26 at higher secondary level.
• During the last five years, social services accounted for about
37
VASAVI IAS ACADEMY
• In 2019-20, 26.45 crore children were enrolled in schools.

During the year, schools enrolled about 42 lakh additional children, 2021.
out of which 26 lakh were in primary to higher secondary levels • Steps have been taken by the Government to minimize the adverse
and 16 lakh were in pre-primary as per Unified District impact of the pandemic on the education system to address the
Information System for Education plus (UDISE+) database. concerns raised through private studies undertaken during the
pandemic period. Almost all enrolled children have textbooks for
• Year 2019-20 saw improvement in gross enrolment ratios
their current grade (91.9 percent).
(GER) at all levels and improvement in gender parity. GER in
primary – enrolment in class 1st to 5th as a percentage of • Gross enrolment ratio in higher education recorded at 27.1
population in age 6 to 10 years - for girls as well as boys have percent in 2019-20, slightly higher from 26.3 percent in 2018-
improved in 2019-20. 19. For males, it has also increased from 26.3 percent in 2018-19 to
• GER in upper-primary (enrollment in class 6 to 8 as a percent 26.9 percent in 2019-20 while for females it has increased from
26.4 percent to 27.3 percent respectively
of population in age 11-13 years), which was stagnant
between 2016-17 and 2018-19, improved in 2019-20.
Recent Initiatives in Higher Education
School Drop-out
• Year 2019-20 saw decline in dropout rates11 at primary, • Government has taken multiple initiatives aimed at revolutionizing
upper-primary, and secondary levels. In 2019-20, school the higher education ecosystem by (i) enabling higher
dropout rate at primary level declined to 1.45 percent from vocationalisation, (ii) greater multi-disciplinary research, (iii)
4.45 percent in 2018-19. The decline is for both girls and providing multiple entry and exit points, (iv) promoting globalization
boys. of education, (v) leveraging the potential of Information and
• ASER found that despite the pandemic, enrolment in the age cohort Communication Technology (ICT) in teaching and learning process
for all learners.
of 15-16 years continued to improve as the number of not
enrolled children in this age group declined.
National Apprenticeship Training Scheme (NATS):
• However, the ASER (Rural) report also found that during the
• It has been extended for the next five years with an outlay
pandemic, children (age 6-14 years) ‘not currently enrolled in
of 3054 crores which will make, through apprenticeship, around 9
schools’ increased from 2.5 percent in 2018 to 4.6 percent in
lakh students employable.
• Academic Bank of Credit, launched on 29.07.2021, would
38
VASAVI IAS ACADEMY
digitally store the academic credits earned from various recognized

improved in 2019-20 over 2018-19.
Higher Educational Institutions (HEI) such that credits so earned can
• The improvement in skills has also been for males and females, both
be accounted for award of degree by any given HEI..
in rural and urban sectors. However, formal training for males and
• e-PGPathshala: 154 Universities have come on board for
females is lower in rural areas than in urban areas.
accepting credit transfer for courses offered through SWAYAM
platform till now, thereby boosting mainstreaming of Massive Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Online Open Courses (MOOCs).
• PMKVY has two training components, viz., Short Term
• Unnat Bharat Abhiyan: The objective of the scheme is to engage Training (STT) and Recognition of Prior Learning (RPL).
reputed higher educational institutions (central and state; public and Between 2016-17 and 2021-22 (as on 15 January 2022),
private) to understand and work in rural areas. under PMKVY 2.0 about 1.10 crore persons were trained,
• Scholarships for weaker sections: scholarship schemes (such 83 percent certified and about 21 lakhs placed. In 2021-22,
as Central Sector Scheme of Scholarship for College and University • As on 15.01.2022, 1.26 lakh migrants have been trained /
Students which has benefited over 1.5 lakh students in 2021- oriented (0.88 lakh in STT and 0.38 lakh in RPL).
22 as of November. • Recognition of Prior Learning (RPL): RPL’s objectives are
(i) to align the competencies of the unorganized workforce of the
SKILL DEVELOPMENT
country with the standardized National Skill Qualification
• Periodic Labour Force Survey (PLFS) 2019-20 shows that
Framework; (ii) to enhance the opportunities for employment and
formal vocational / technical training among youth (age 15-
provide alternative means for higher education; (iii) to provide
29 years) and working population (age 15-59 years) have
opportunities for reducing inequalities.
Aatmanirbhar Skilled Employees Employer Mapping around 26.7 lakh migrant’s data/profiles are also available on
(ASEEM) portal the portal. The Portal consists of three IT based AI (artificial
• ASEEM, a digital platform, created to match supply of skilled intelligence) driven interfaces for stakeholder interactions:
workforce with the market demand, acts as a directory of skilled
workforce. As on 31.12.2021, 1.38 crore candidates have been Pradhan Mantri Dakshta Aur Kushalta Sampann
registered on the portal including candidates registered on Skill Hitgrahi Yojana (PM-DAKSH)
India Portal (SIP). As on 31.12.2021, • PM-DAKSH Yojana is a national action plan for skilling of
marginalized persons including scheduled castes, backward
39
VASAVI IAS ACADEMY
classes and safai karamcharis. The eligible target group are

crores, from ` 61,500 crore in FY 2020-21. Allocation for
being provided skill development training programmes on (i)
FY 2021-22 has been enhanced to Rs 98000 crore so far.
up-skilling/reskilling (ii) short term training programme
In FY 2021-22 over 8.70 crore individuals and 6.10 crore
(iii) long term training programme and (iv) entrepreneurship
households were provided work so far.
development programme. During the year 2021-22, a
• To boost employment and livelihood opportunities for returnee
target has been set to provide skill development training to
migrant workers, Garib Kalyan Rojgar Abhiyaan was launched in
approximately 50,000 persons of the target groups.
June 2020. It focused on 25 target-driven works to provide
Trends in Urban employment using Quarterly PLFS employment and create infrastructure in the rural areas of 116
data districts of 6 States with a resource envelope of Rs 50,000 crore.
• Before the outbreak of COVID-19, the urban labor market Boosting Self-employment
had shown signs of improvement in terms of labour force
• The Deendayal Antyodaya Yojana – National Rural Livelihoods
participation rate (LFPR), Worker population ratio (WPR) and
Mission (DAY-NRLM), launched in 2011, targets to mobilise
Unemployment rates (UR).
about 9-10 crore households into Self Help Groups (SHGs).
• In the first quarter of 2020-21, the unemployment rate for the
It is to link them to sustainable livelihood opportunities by building
urban sector rose to 20.8 percent. The LFPR and WPR in the
their skills and enabling them to access formal sources of finance,
urban sector also declined significantly during this quarter.
entitlements and services from both public and private sectors.
• With the revival of the economy in the subsequent quarters
of 2020-21, all three labour market indicators showed a swift Social protection
recovery. • Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM)
• The UR gradually declined during this period to reach 9.3 per Yojana: it is a voluntary and contributory pension scheme for
cent in Q4 of 2020-21. providing a monthly minimum assured pension of 3000 on attaining
the age of 60 years.
Trends in data on demand for work under MGNREGS
• National Pension Scheme for Traders, Shopkeepers and
• The demand for work under Mahatma Gandhi National Rural Self-Employed Persons: It is a voluntary and contributory
Employment Guarantee Scheme (MGNREGS) is an indicator of pension scheme for providing a monthly minimum assured pension
rural labour markets of 3000 after attaining the age of 60 years. The traders,
• An analysis of the latest data on demand for work under MGNREGS shopkeepers and self-employed persons in the age group of
suggests the following trends in the rural labour market: (i) 18-40 years with an annual turnover not exceeding
MGNREGS employment peaked during the nation- wide 1.5 crore and are not members of EPFO/ESIC/NPS (Govt.
lockdown in 2020 (ii) the demand for MGNREGS work has funded)/PM-SYM or not an income tax payer, can join the
stabilized after the second COVID wave; (iii) aggregate scheme.
MGNREGS employment is still higher than pre-pandemic
level. Status of Labour Reforms
• In 2019 and 2020, 29 Central Labour laws were amalgamated,
Policy responses to boost rural livelihood rationalized and simplified into four labour codes, viz.,
Incentives for job creation the Code on Wages, 2019 (August, 2019), the Industrial Relations
• Aatmanirbhar Bharat Rojgar Yojana (ABRY) was announced as a Code, 2020, the Code on Social Security, 2020, and the
part of Aatmanirbhar Bharat 3.0 package to boost the economy, Occupational Safety, Health & Working Conditions Code, 2020
increase the employment generation in post COVID recovery (September, 2020).
phase and to incentivize creation of new employment along with
social security benefits and restoration of loss of employment
HEALTH
during COVID-19 pandemic. Programmes and Schemes for Health Sector
• Under ABRY, the Government of India is crediting for a period of • Ayushman Bharat Health and Wellness Centres (AB-
two years both the employees’ share (12 percent of wages) and HWCs): It adopts a continuum of care approach, comprising two
employers’ share (12 percent of wages) of contribution payable or interrelated components. The first component is creation of
only the employees’ share, depending on employment strength of 1,50,000 Health and Wellness Centres (HWCs) which cover both,
the EPFO registered establishments. maternal and child health services and non- communicable
diseases, including free essential drugs and
Wage employment
• Allocation to MGNREGS in FY 2021-22 increased to 73,000
40
VASAVI IAS ACADEMY
diagnostic services.
Expectation of life at birth for India are available for 2014-18.
• Ayushman Bharat Pradhan Mantri Jan Arogya Yojana Life expectancy at birth was 69.4 years for the period 2014-
(AB-PMJAY): The scheme provides a health cover of ` 5 lakhs per 18; it has increased by 0.4 years from 2013-17.
family per year for secondary and tertiary care hospitalization to
over 10.74 crores poor and vulnerable families in the bottom 40 Total Fertility rate
percent of the Indian population. • Latest NFHS-5 shows that Total Fertility Rate (TFR), an
• PM-Ayushman Bharat Health Infrastructure Mission (PM- average number of children per woman, has further come down to 2
ABHIM) is a mission to develop the capacities of primary, in 2019-21 from 2.2 in 2015-16 (Table 13).
secondary, and tertiary care health systems, strengthen existing • Use of family planning methods has increased from 53.5
national institutions, and create new institutions, to cater to detection percent in 2015-16 to 66.7 percent in 2019-21.
and cure of new and emerging diseases.
• Institutional delivery has increased to 88.6 percent in 2019-
• Pradhan Mantri Swasthya Suraksha Yojana (PMSSY): 21 compared to 78.9 percent in 2015-16.
Under PMSSY, construction of 22 new All India Institutes for
Medical Science (AIIMS) and 75 Government Medical College up- Sex Ratio
gradation Projects has been approved and taken up for • Sex ratio, number of females per 1000 males, in the total population
implementation. has risen from 991 females in 2015-16 (NFHS-4) to 1020 in
• Ayushman Bharat Digital Mission (ABDM), erstwhile 2019-21 (NFHS-5). More importantly, sex ratio at birth, female
National Digital Health Mission (NDHM), announced on children per 1000 male children born in the last five years, has
27th September, 2021 with the aim to develop the backbone grown from 919 in 2015-16 to 929 in 2019-21.
necessary to support the integrated digital health infrastructure of the
country. DRINKING WATER AND SANITATION
• e-Sanjeevani: In wake of COVID-19 pandemic, Ministry Jal Jeevan Mission (JJM)
of Health and Family Welfare upgraded e-Sanjeevani • Rolled out in August 2019, JJM envisioned to provide adequate
application to enable patient-to-doctor tele-consultation to safe drinking water through individual household tap
ensure continuum of care and facilitate health services to all citizens connections to all households in rural India by 2024. The goal of
in the confinement of their homes free of cost. the Mission is to enable every rural household to get assured
supply of potable-piped water at a service level of 55 litre per
Health Outcome Indicators capita per day (lpcd) regularly on a long-term basis.
• As per latest National Family Health Survey (NFHS)-5, social • The mission will benefit more than 19 crore rural families or
indicators such as total fertility rate, sex ratio and health outcome more than 90 crores rural population.
indicators viz., infant mortality rate, under-five mortality rate, • Total outlay for the mission is Rs 3.60 lakh crores.
institutional birth rates have improved over year 2015-16.
• In 2019, out of about 18.93 crore families in rural areas, about
Child Health Indicators 3.23 crore (17 percent) rural families had tap water connections in
their homes.
• NFHS-5 also shows that not only services are reaching the
public but the intended outcomes have also improved. All child • Six States/ UTs have achieved the coveted status of 100 percent
nutrition indicators have also improved at all India levels. Under households with tap water supply.
Five Mortality Rate (U5MR) has declined from
Swachh Bharat Mission (Grameen) [SBM-G]
49.7 in 2015-16 to 41.9 in 2019-21. Infant Mortality Rate
• Rural sanitation has made tremendous progress under SBM-G
(IMR) has declined from 40.7 per 1000 live births in 2015-16
to 35.2 per 1000 live births in 2019-21. since its inception on 2nd October, 2014. Since inception till
28.12.2021, more than 10.86 crore toilets have been built in rural
• Stunting has declined from 38 percent in 2015-16 to 36
India.
percent in 2019-21. Wasting has also declined from 21
percent in 2015-16 to 19 percent in 2019-21. And, • Open Defecation Free (ODF) Plus under Phase II of SBM(G) is
underweight declined from 36 percent in 2015-16 to 32 being implemented from 2020-21 to 2024-25 with a goal of
percent in 2019-21. making all the villages Open Defecation Free (ODF) through
convergence between different verticals of financing and
Life Expectancy various schemes of Central and State Governments.
• Report on ‘Sample Registration based System (SRS) based • As per the recently released findings of the fifth round of the
Abridged Life Tables 2014-18’ provides estimates of National Family Health Survey, 2019-21 (NFHS-5), population
average longevity at various age groups Latest estimates of living in households that use an improved sanitation facility
41
VASAVI IAS ACADEMY
has increased from 48.5 percent in 2015-16 to 70.2 percent

• As on 18th January 2022, 2.17 crore houses have been sanctioned
in 2019-21.
and 1.69 crore houses completed against a target of 2.63 crore
• Electricity and Clean Cooking Fuel: Government has made houses till 2021-22.
efforts to increase access to clean fuel for cooking through the
Pradhan Mantri Ujjwala Yojana (PMUY). As per NFHS-5, Pradhan Mantri Gram Sadak Yojana (PMGSY)
58.6 percent of households were using clean fuel for cooking in • As on 18.01.2022, a total of 1,82,506 roads measuring 7,82,844
2019-21, a significant increase from 43.8 percent in 2015- 16. km and 9,456 Long Span Bridges (LSBs) have been
• Government has made efforts through schemes such as sanctioned and 1,66,798 roads measuring 6,84,994 km and 6,404
SAUBHAGYA Yojana to ensure ‘Power for all.’ As per latest LSBs have been completed.
NFHS, households with electricity have increased from 88 percent
in 2015-16 to 96.8 percent in 2019-21. Multidimensional Poverty
• Using the NFHS-4 (2015-16) report, in line with the global
RURAL DEVELOPMENT Multidimensional Poverty Index (MPI), NITI Aayog prepared a
• Pradhan Mantri Awaas Yojana-Gramin (PMAY-G): PMAY-G, Multidimensional Poverty Index at the national level, for all
launched on 20th November 2016, envisages ‘Housing for All by states and districts of India. It will enable measuring deprivation
2022’ through a robust monitoring mechanism and improved across twelve indicators at national, States and districts level.
scheme architecture. It aims to provide assistance for construction of • In 2015-16, 25 percent households were found to be
2.95 crore houses. multidimensional poor in India. Among states,
• In the first phase from 2016-17 to 2018-19, one crore houses • Bihar had the largest (51.91%) multidimensional poor households,
were taken up. Under phase II, assistance is being provided for followed by Jharkhand (42.16%) and Uttar Pradesh (37.79%).
construction of remaining 1.95 crore houses in 2019-20 to
2021-22.
42
VASAVI IAS ACADEMY
11 TRACKING DEVELOPMENT THROUGH

SATELLITE IMAGES AND CARTOGRAPHY
CHAPTER
Introduction Kharif crop cycle

• An important theme of this year’s Economic Survey is the use of
• Kharif crop cycle has been compared of Moga district in
new forms of data and information for tracking economic activity
Punjab. The images show that the Kharif sowing cycle has
and development. Chapter 1 looked at the use of high-frequency
shifted ahead by around two-to-three weeks causing the
data for the real-time management of an economy through
Kharif harvest to almost coincide with Rabi sowing in
uncertain times. This chapter looks at the use of another kind of
November. The closing of the gap is a likely factor that encourages
data – geospatial data and cartographic techniques – to track, farmers to burn stubble and may be related to restrictions on the
compare and represent longer-term developments. early transplanting of Kharif paddy. These restrictions were
introduced in 2009 to reduce the pumping of groundwater but may
Night light luminosity
have had the unintended consequence of damaging air
• Using satellite images, India’s night-time luminosity is
quality.
compared between 2012 and 2021. Night-time luminosity
provides an interesting representation of the expansion of electricity Conclusion
supply, the geographical distribution of population and economic • While this chapter has restricted itself to static two-
activity, urban expansion as well as the growth of ribbon dimensional images due to practical considerations of
developments between urban hubs. publication, readers will be aware that dynamic and multi-
dimensional cartography is now commonplace for everyday
• Similarly, using geospatial and cartographic techniques, activities like ordering a taxi or looking for an address.
the subsequent maps show the extent of physical as well However, The Survey is quite optimistic that overall macro-
as financial infrastructure development in India. This economic stability indicators suggest that the Indian Economy is
includes expansion of national highways, airports, commercial well placed to take on the challenges of 2022-23 and one of
the reasons that the Indian Economy is in a good position is its
bank branches, metros, etc.
unique response strategy.
Operational Airports in India (2021)
Operational Airports in India (2016)

Economic Survey Summary Vasavi

Uploaded by

Copyright:

Available Formats

Economic Survey Summary Vasavi

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Economic Survey Summary Vasavi

Uploaded by

Copyright:

Available Formats

ECONOMIC SURVEY 2021-22

1 State of the Economy 3

4. Monetary Management and Financial Intermediation 16

5. Price and Inflation 19

6. Sustainable Development and Climate Change 21

7. Regulatory Forbearance: An Emergency Medicine, Not Staple Diet 26

8. Innovation: Trending Up But Needs Thrust, From The Private Sector 29

10. The Bare Necessities 34

01 STATE OF THE ECONOMY

Vaccine economics • India is emphasizing on supply side reforms: rather than a

Share of Sectors in Nominal GVA

Introduction businesses, and the world’s largest food subsidy programme

• The revenue from excise duty registered an YoY growth of

• The Budget 2021-22 envisaged a growth of 16.7 per cent in

• Under the New PSE Policy, public sector commercial enterprises

State Finances  Enhanced limit of borrowing for the States

Introduction • The impact on trade-in value terms varied significantly across

India’s external sector is resilient to face any unwinding of the

GLOBAL ECONOMIC ENVIRONMENT

it by exporting goods worth US$ 301.4 billion, which is higher than

Major Schemes & Initiatives to boost exports

• Among major import commodities, crude petroleum imports more

TRADE-IN SERVICES BOP BALANCE AND FOREIGN EXCHANGE RESERVES

• India’s external debt as of end-September 2021, estimated at Conclusion

04 MONETARY MANAGEMENT AND FINANCIAL

INTRODUCTION market-based reverse

LIQUIDITY CONDITIONS AND THEIR MANAGEMENT

DEVELOPMENTS IN G-SEC MARKET

NATIONAL ASSET RECONSTRUCTION COMPANY

6.9 percent at end-September 2021. NNPA ratio of SCBs was

INSURANCE SECTOR access to local assets before funds go to the foreign

05 PRICES AND INFLATION

• Wholesale inflation based on Wholesale Price Index (WPI)

General inflation based on different price indices

SUSTAINABLE DEVELOPMENT AND CLIMATE

Introduction: increase of 12, 10 and 8 points respectively.

Performance of States and UTs on the NITI Aayog SDG

• The Hazardous and Other Wastes (Management and Transboundary 2022.

Water • Under the Nirmal Ganga (Unpolluted Flow) component of the

• Air pollution remains a major concern, with 36 cities showing an

Augmenting Finance for Sustainable Development International Solar Alliance (ISA)

GROSS VALUE ADDED (GVA) IN AGRICULTURE

mainly because of wide fluctuations in private investment in

• In FPI, 100 percent FDI is permitted under the automatic route.

INNOVATION: TRENDING UP BUT NEEDS

Introduction negative growth of 0.7 growth in October 2020.

the Government has accorded ‘in-principle’ approval for

Production Linked Incentives Schemes Connecting PILLARS OF INDIA PM-GATI SHAKTI

• PM MITRA inspired from 5F’s -farm to fiber; fiber to factory;

Introduction hotels, transport, communication & services related to broadcasting.

UN Conference on Trade and Development (UNCTAD), India was

 Services exports: India has a dominant presence in global

THE BARE NECESSITIES

Introduction: Health Organisation (WHO) guidelines and global best

INDIA’S HEALTH RESPONSE TO THE COVID-19

COVID Vaccination Strategy Pricing and equity

administered in the country, rest have been administered at

• In 2019-20, 26.45 crore children were enrolled in schools.

digitally store the academic credits earned from various recognized