Thursday, July 10, 2014

INDIAN ECONOMIC SURVEY 2013-14 - Highlights

Economic Survey of India 2013-14: Highlights

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Union Finance Minister Arun Jaitely on 9 July 2014 presented Economic Survey of India 2013-14 in the Lok Sabha. This was the first economic survey of the new government led by Prime Minister, Narendra Modi.
India’s economy in financial year 2014-15 is expected to grow in the range of 5.4 – 5.9 percent overcoming sub-5 percent growth. The Survey listed certain risk factors for the growth and they are poor monsoon, the external environment and the poor investment climate.

The Economic Survey is presented every year, just before the Union Budget and after the Railway Budget. It is an annual document of the Union Ministry of Finance, Government of India and it reviews the developments in the Indian economy of previous 12 months (fiscal year).  

It summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.

• Economy to grow in the range of 5.4 – 5.9 per cent in 2014-15 overcoming sub-5 percent growth.
• Growth slowdown was broad based, affecting in particular the industry sector.
• Aided by favourable monsoons, agricultural and allied sector registered a growth of 4.7 per cent in 2013-14.
• Industry and Service sectors also witnessed slowdown.
• Reforms needed for long term-growth prospects on 3 fronts- low and stable inflation regime, tax and expenditure reform and regulatory framework.
• Survey suggests removal of restriction on farmers to buy, sell and store their produce to customers across the country and the world.
• Rationalisation of subsidies on inputs such as fertilizer and food is essential.
• Government needs to eventually move towards income support for farmers and poor households.
• The fiscal policy for 2013-14 was calibrated with two-fold objectives; first, to aid growth revival; and second, to reach the FD level targeted for 2013-14.
• The Budget for 2013-14 followed the policy of revenue augmentation and expenditure rationalization to contain government spending within sustainable limits.
• The fiscal outcome of the central government in 2013-14 was achieved despite the macroeconomic challenges of growth slowdown, elevated levels of global crude oil prices, and slow growth of investment.
• High inflation, particularly food inflation, was the result of structural as well as seasonal factors.
• IMF projects most global commodity prices are expected to remain flat during 2014-15.
• The RBI with a view to restoring stability to the foreign exchange market hiked short term interest rate in July and compressed domestic money market liquidity.
• RBI has indentified five sectors -- infrastructure, iron and steel, textiles, aviation and mining as the stressed sectors.
• Public sector banks (PSBs) have high exposures to the ‘industry’ sector in general and to such ‘stressed’ sectors in particular.
• The New Pension System (NPS), now National Pension System, introduced for the new recruits who join government service on or after January 2004, represents a major reform of Indian pension arrangements.
• The next wave of infrastructure financing will require a capable bond market.
• The India’s balance-of-payments position improved dramatically in 2013-14 with current account deficit at US $ 32.4 billion as against US$ 88.2 billion in 2012-13.
• India’s foreign exchange reserves increased from US$ 292.0 billion at end March 2013 to US$ 304.2 billion at end march 2014.
• India’s external debt has remained within manageable limits due to the external debt management policy with prudential restrictions on debt varieties of capital inflows.
• World trade volume which decelerated to 2.8 per cent in 2012 has shown signs of recovery in 2013, albeit slow with a 3.0 per cent growth. 
• The sharp fall in imports and moderate export growth in 2013-14 resulted in a sharp fall in India`s trade deficit by 27.8 per cent.
• In April-May 2014, trade deficit declined by 42.4 per cent.
• Record food grains and oilseeds production of 264.4 million tonnes (mt) and 32.4 mt is estimated in 2013-14.
• Horticulture production estimated at 265 mt in 2012-13 has exceeded the production of foodgrains and oilseeds for the first time.
• Due to higher procurement, stocks of foodgrains in the Central Pool have increased to 69.84 million tonnes as on June 1, 2014.
• The net availability of foodgrains increased to 229.1 million tonnes and that of edible oils to 12.7 kg per year in 2013.
• The latest gross domestic product (GDP) estimates show that industry grew by just 1.0 per cent in 2012-13 and slowed further in 2013-14, posting a modest increase of 0.4 per cent.
• India ranked 12th in terms of services GDP in 2012 among the world’s top 15 countries in terms of GDP (at current prices).
• India has the second fastest growing services sector with its CAGR at 9.0 per cent, just below China’s 10.9 per cent, during 2001 to 2012.
• In 2013-14, FDI inflows to the services sector (top five sectors including construction) declined sharply by 37.6 per cent to US$ 6.4 billion compared to an overall growth in FDI inflows at 6.1 per cent resulting in the share of the top five services in total FDI falling to nearly one-sixth.
• Major sector-wise performance of core industries and infrastructure services during 2013-14 shows a mixed trend. While the growth in production of power and fertilizers was comparatively higher than in 2012-13, coal, steel, cement, and refinery production posted comparatively lower growth. Crude oil and natural gas production declined during 2013-14.
• The performance of the coal sector in the first two years of the Twelfth Plan has been subdued with domestic production at 556 MT in 2012-13 and 566 MT in 2013-14.
• A total length of 21,787 km of national highways has been completed till March 2014 under various phases of the NHDP. In spite of several constraints due to the economic downturn, the NHAI constructed 2844 km length in 2012-13, its highest ever annual achievement. During 2013-14 a total of 1901 km of road construction was completed. 
• From the infrastructure development perspective, while important issues like delays in regulatory approvals, problems in land acquisition & rehabilitation, environmental clearances, etc. need immediate attention, time overruns in the implementation of projects continue to be one of the main reasons for underachievement in many of the infrastructure sectors.
• Human- induced Greenhouse gas (GHG) emissions are growing and are chiefly responsible for climate change.
• The world is not on track for limiting increase in global average temperature to below 2◦C, above pre-industrial levels. GHG emissions grew on average 2.2 per cent per year between 2000 and 2010, compared to 1.3 per cent per year between 1970 and 2000.
• There is immense pressure on governments to act through two new agreements on climate change and sustainable development, both of which will be global frameworks for action to be finalized next year.
• The cumulative costs of India’s low carbon strategies have been estimated at around USD 834 billion at 2011 prices, between 2010 and 2030.
• According to HDR 2013, India has slipped down in HDI with its overall global ranking at 136 (out of the 186 countries) as against 134 (out of 187 countries) as per HDR 2012. It is still in the medium human development category.
• The poverty ratio (based on the MPCE of 816 for rural areas and 1000 for urban areas in 2011-12 at all India level), has declined from 37.2 per cent in 2004-05 to 21.9 per cent in 2011-12.
• In absolute terms, the number of poor declined from 407.1 million in 2004-05 to 269.3 million in 2011-12 with an average annual decline of 2.2 percentage points during 2004-05 to 2011-12.
• During 2004-05 to 2011-12, employment growth [CAGR] was only 0.5 per cent, compared to 2.8 per cent during 1999-2000 to 2004-05 as per usual status.
Source: PIB

Wednesday, July 2, 2014

President of India


Shri Pranab Mukherjee
Shri Pranab Mukherjee assumed office as the 13th President of India on July 25, 2012, crowning a political career of over five decades of exemplary service to the nation in Government as well as Parliament.
Date of Birth: December 11, 1935
Educational Qualifications:
M.A. (History),
M.A. (Political Science),
LL.B., D. Litt. (Honoris Causa),
Educated at Vidyasagar College
Present Address:
Rashtrapati Bhavan,
New Delhi-110 004,
Tel. (011) 23015321
Contact Details:
The President's Secretariat
Rashtrapati Bhavan,
New Delhi,110 004.
Phone: 011-23015321
Fax : 011-23017290/011-23017824

Portfolios of the Union Council of Ministers

Portfolios of the Union Council of Ministers

Prime Minister

 Shri Narendra ModiPersonnel, Public Grievances and Pensions 
Department of Atomic Energy Department of Space
All important policy issues 
and all other portfolios not allocated to any Minister

Cabinet Ministers

1Shri Raj Nath SinghHome Affairs
2Smt. Sushma SwarajExternal Affairs
Overseas Indian Affairs
3Shri Arun JaitleyFinance
Corporate Affairs
4Shri M. Venkaiah NaiduUrban Development
Housing and Urban Poverty Alleviation
Parliamentary Affairs
5Shri Nitin Jairam GadkariRoad Transport and Highways
Rural Development
Panchayati Raj
Drinking Water and Sanitation
6Shri D.V. Sadananda GowdaRailways
7Sushri Uma BharatiWater Resources, River Development and Ganga Rejuvenation
8Dr. Najma A. HeptullaMinority Affairs
9Shri Ramvilas PaswanConsumer Affairs, Food and Public Distribution
10Shri Kalraj MishraMicro, Small and Medium Enterprises
11Smt. Maneka Sanjay GandhiWomen and Child Development
12Shri AnanthkumarChemicals and Fertilizers
13Shri Ravi Shankar PrasadCommunications and Information Technology 
Law and Justice
14Shri Ashok Gajapathi Raju PusapatiCivil Aviation
15Shri Anant GeeteHeavy Industries and Public Enterprises
16Smt. Harsimrat Kaur BadalFood Processing Industries
17Shri Narendra Singh TomarMines
Labour and Employment
18Shri Jual OramTribal Affairs
19Shri Radha Mohan SinghAgriculture
20Shri Thaawar Chand GehlotSocial Justice and Empowerment
21Smt. Smriti Zubin IraniHuman Resource Development
22Dr. Harsh VardhanHealth and Family Welfare

Ministers of State

1General V.K. SinghDevelopment of North Eastern Region (Independent Charge)
External Affairs
Overseas Indian Affairs
2Shri Inderjit Singh RaoPlanning (Independent Charge)
Statistics and Programme Implementation (Independent Charge)
3Shri Santosh Kumar GangwarTextiles (Independent Charge)
Parliamentary Affairs
Water Resources, River Development and Ganga Rejuvenation
4Shri Shripad Yesso NaikCulture (Independent Charge)
Tourism (Independent Charge)
5Shri Dharmendra PradhanPetroleum and Natural Gas (Independent Charge)
6Shri Sarbananda SonowalSkill Development, Entrepreneurship, Youth Affairs and Sports (Independent Charge)
7Shri Prakash JavadekarInformation and Broadcasting (Independent Charge)
Environment, Forest and Climate Change (Independent Charge)
Parliamentary Affairs
8Shri Piyush GoyalPower (Independent Charge)
Coal (Independent Charge)
New and Renewable Energy (Independent Charge)
9Dr. Jitendra SinghScience and Technology (Independent Charge)
Earth Sciences (Independent Charge)
Prime Minister Office
Personnel, Public Grievances & Pensions
Department of Atomic Energy
Department of Space
10Smt. Nirmala SitharamanCommerce and Industry (Independent Charge)
Corporate Affairs
11Shri G.M. SiddeshwaraCivil Aviation
12Shri Manoj SinhaRailways
13Shri NihalchandChemicals and Fertilizers
14Shri Upendra KushwahaRural Development
Panchayati Raj
Drinking Water and Sanitation
15Shri Radhakrishnan PHeavy Industries and Public Enterprises
16Shri Kiren RijijuHome Affairs
17Shri Krishan PalRoad Transport and Highways
18Dr. Sanjeev Kumar BalyanAgriculture
Food Processing Industries
19Shri Mansukhbhai Dhanjibhai VasavaTribal Affairs
20Shri Raosaheb Dadarao DanveConsumer Affairs, Food and Public Distribution
21Shri Vishnu Deo SaiMines
Labour and Employment
22Shri Sudarshan BhagatSocial Justice and Empowerment


Home>> About Us - Organisation and Functions
RBI - Brochure explaining RBI's Role and Functions in brief
Reserve Bank of India : Functions and Working
Organisation and Functions
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.
Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
" regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." 
The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
  • Appointed/nominated for a period of four years
  • Constitution:
    • Official Directors
      • Full-time : Governor and not more than four Deputy Governors
    • Non-Official Directors
      • Nominated by Government: ten Directors from various fields and two government Officials
      • Others: four Directors - one each from four local boards
  • Profile of Central Board Directors
Functions : General superintendence and direction of the Bank's affairs

  • One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi
  • Membership:
  • consist of five members each
  • appointed by the Central Government
  • for a term of four years
Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

Financial Supervision
The Reserve Bank of India performs this function under the guidance of the Board for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India.
Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.
The Board is constituted by co-opting four Directors from the Central Board as members for a term of two years and is chaired by the Governor. The Deputy Governors of the Reserve Bank are ex-officio members. One Deputy Governor, usually, the Deputy Governor in charge of banking regulation and supervision, is nominated as the Vice-Chairman of the Board.
BFS meetings
The Board is required to meet normally once every month. It considers inspection reports and other supervisory issues placed before it by the supervisory departments.
BFS through the Audit Sub-Committee also aims at upgrading the quality of the statutory audit and internal audit functions in banks and financial institutions. The audit sub-committee includes Deputy Governor as the chairman and two Directors of the Central Board as members.
The BFS oversees the functioning of Department of Banking Supervision (DBS), Department of Non-Banking Supervision (DNBS) and Financial Institutions Division (FID) and gives directions on the regulatory and supervisory issues.
Some of the initiatives taken by BFS include:
  1. restructuring of the system of bank inspections
  2. introduction of off-site surveillance,
  3. strengthening of the role of statutory auditors and
  4. strengthening of the internal defences of supervised institutions.
The Audit Sub-committee of BFS has reviewed the current system of concurrent audit, norms of empanelment and appointment of statutory auditors, the quality and coverage of statutory audit reports, and the important issue of greater transparency and disclosure in the published accounts of supervised institutions.
Current Focus
  • supervision of financial institutions
  • consolidated accounting
  • legal issues in bank frauds
  • divergence in assessments of non-performing assets and
  • supervisory rating model for banks.
    Umbrella Acts
    Acts governing specific functions
    • Public Debt Act, 1944/Government Securities Act (Proposed): Governs government debt market
    • Securities Contract (Regulation) Act, 1956: Regulates government securities market
    • Indian Coinage Act, 1906:Governs currency and coins
    • Foreign Exchange Regulation Act, 1973/Foreign Exchange Management Act, 1999Governs trade and foreign exchange market
    • "Payment and Settlement Systems Act, 2007Provides for regulation and supervision of payment systems in India"
    Acts governing Banking Operations
    • Companies Act, 1956:Governs banks as companies
    • Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980: Relates to nationalisation of banks
    • Bankers' Books Evidence Act
    • Banking Secrecy Act
    • Negotiable Instruments Act, 1881
    Acts governing Individual Institutions
    • State Bank of India Act, 1954
    • The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
    • The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
    • National Bank for Agriculture and Rural Development Act
    • National Housing Bank Act
    • Deposit Insurance and Credit Guarantee Corporation Act
    Monetary Authority:
    • Formulates, implements and monitors the monetary policy.
    • Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.
    Regulator and supervisor of the financial system:
    • Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
    • Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
    Manager of Foreign Exchange
    • Manages the Foreign Exchange Management Act, 1999.
    • Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
    Issuer of currency:
    • Issues and exchanges or destroys currency and coins not fit for circulation.
    • Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.
    Developmental role
    • Performs a wide range of promotional functions to support national objectives.
    Related Functions
    • Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
    • Banker to banks: maintains banking accounts of all scheduled banks.
    Has five training establishments
    • Two, namely, College of Agricultural Banking and Reserve Bank of India Staff College are part of the Reserve Bank
    • Others are autonomous, such as, National Institute for Bank Management, Indira Gandhi Institute for Development Research (IGIDR), Institute for Development and Research in Banking Technology (IDRBT)
    For details on training establishments, please check their websites links which are available in Other Links.
    Majority stake: