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Economy

13th October – Minimum Support Price (MSP)

MSP in the age of surplus MSP (Minimum Support Prices) regime was the creation of the era of scarcity in the mid-1960s. Indian agriculture has, since then, turned the corner from scarcity to surplus. The policy instruments of dealing with shortages are different from those dealing with surpluses. In a surplus economy, unless we allow …

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10th October – Natural Gas Market Reforms

Natural Gas Market Reforms Petroleum Minister Dharmendra Pradhan has announced the ‘natural gas marketing reforms’ that the Cabinet Committee on Economic Affairs cleared recently. These reforms just reinforces how twisted India’s policies are, how reforms are mostly made in a piecemeal manner; that, of course, is the main reason why they don’t deliver as much …

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8th October – Production Linked Incentive Scheme

Production Linked Incentive Scheme A significant increase in global demand for consumer electronics has given India an opportunity to attract foreign investments as well as encourage domestic manufacturers to focus on manufacturing consumer electronics in India under the flagship ‘Make in India’ initiative of the Government. Import restrictions – To achieve this objective, the Government …

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6th October – Insolvency and Bankruptcy Code

Transforming business and the insolvency system The Insolvency and Bankruptcy Code, along with the Goods and Services Tax regime, among other key reforms, have helped in significantly improving the ease of doing business in India and enabling it to emerge as a ‘Make for World’ platform. These reforms have led to a surge in Foreign …

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Bilateral Netting

24th September – Bilateral Netting

The importance of Bilateral Netting The Government of India has just placed – the Bilateral Netting of Qualified Financial Contracts Bill, 2020 in the Parliament. The new law will allow financial institutions to ‘net’ out their exposures against each other rather than have to manage exposure on a gross basis. What is ‘bilateral netting’? Netting …

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Labour Reforms

23rd September – Labour Reforms

Labour laws dilution Recently, the government withdrew three Bills related to labour laws and replaced them with new ones. These Bills make significant changes to regulation of labour and the employer-employee relationship in several ways. Background – India has a complex regime of labour laws, and several committees have recommended simplifying and rationalising them. Last …

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Priority Sector Lending

3rd September – Priority Sector Lending Certificates

Priority Sector Lending Certificates The RBI had listed out ‘priority’ sectors that banks such as agriculture, housing, education and micro-small enterprises to which the banks must compulsorily lend to in the form of loans. It is called ‘priority sector lending’. But this method has often been criticised for meddling too much in the workings of …

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Supply Chain Resilience Initiative

1st September – Supply Chain Resilience Initiative

Supply Chain Resilience Initiative With COVID-19 and trade tensions between China and the United States threatening supply chains or actually causing bottlenecks, Japan has mooted the Supply Chain Resilience Initiative (SCRI) as a trilateral approach to trade, with India and Australia as the other two partners. The initiative is at the strategy stage and has …

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Defence

31st August – Impact of import embargo on defence

Impact of import embargo on defence The Ministry of Defence (MoD) announced an embargo on the import of 101 items through a press release issued on August 9, 2020. Details about the decision – The Annexure to this press release lists a wide range of embargoed ammunition, weapon systems, radars, simulators, and other platforms.  A …

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Battery swapping

29th August – Battery swapping

Should the government promote EV battery swapping? Recently, the government allowed electric vehicles to be sold and registered without batteries. The rationale behind the move, it explained, was to de-link the cost of the battery from the vehicle cost. Battery accounts for 30-40 per cent of an electric vehicle’s cost and this move would bring …

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