Daily News Analysis for UPSC Aspirants
India’s rank in Various Indexes
Ease of business: New insolvency rules, tax norms lift India 30 ranks to top 100
WORLD BANK DOING BUSINESS REPORT 2018
Boosted by substantive jumps in the areas of protecting minority investors through tightening of securities regulations, improvement in rules related to businesses paying taxes and access to getting credit and resolving insolvency, India surged up 30 places to 100th rank among 190 countries in the latest edition of the World Bank’s global ratings on Ease of Doing Business.
If we Compare this year’s ranking with the last year’s ranking, India was only able to gain one slot in the World Bank’s rankings, from 131 to 130.
This is the first time when India has been in top 100 of this list.
The new Indirect tax regime of GST was, however, not a part of the report as the cut-off date for incorporating the reforms was June 1, 2017.
Demonetisation was also not reflected in the report as it was not comparable across countries being a one-time event.
In the Doing Business Report 2018, “distance to frontier metric”, the underlying metric of the Doing Business rankings, improved by over 8% to 60.76 in 2018 from 56.05 in 2017.
World Bank recognizes India as one of the top 10 improvers, having implemented reforms in 8 out of 10 indicators.
Performance Indicators on which Ease of Doing Business Report 2018 is based are: –
- Starting a business-India’s rank in this Indicator is 156.
- Dealing with Construction Permits-India’s rank in this Indicator is 181.
- Getting Electricity-India’s rank in this Indicator is 29.
- Registering Property-India’s rank in this Indicator is 154.
- Getting Credit-India’s rank in this Indicator is 29.
- Protecting Minority Investors-India’s rank in this Indicator is 4.
- Paying Taxes-India’s rank in this Indicator is 119.
- Trading across Borders-India’s rank in this Indicator is 146.
- Enforcing Contracts-India’s rank in this Indicator is 164.
- Resolving Insolvency-India’s rank in this Indicator is 103.
In the above list, the red color Indicates those areas where India still lags such as Starting a Business, Enforcing Contracts etc., and green color Indicates those areas where India has improved.
Few Facts which can be helpful in mains answer writing
- Resolving contract issues in Singapore takes an average of 5 months. In India, it takes 4 years.
- In India, the time taken to enforce a contract is longer today, at 1,445 days, than it was 15 years ago (1,420 days), placing the country in 164th place on the Indicator.
- In Starting a Business, India has reduced the time needed to register a new business to 30 days now from 127 days 15 years ago.
- In Mumbai, an entrepreneur has to go through 12 procedures to start a business which is considerably more than in high income economies, where it takes five procedures on average.
India, Russia ink deal to grant visa-free entry to airline pilots, crew
India and Russia have signed an agreement for granting visa-free entry to pilots and crew members of Chartered and Scheduled flights between the two countries. The development comes ahead of Union Home Minister Rajnath Singh’s long-pending visit to Moscow.
This will mean that pilots and cabin crew members of airlines operating between the two countries will not require business visas, Instead, they can be issued temporary landing permits (TLPs).
The Landing permit for sailors and crew members was curtailed in 2010 following reports of overstay and misuse of the Facility.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment
Fiscal deficit hits 91.3% of FY18 target in 6 months
In the first six months (April-September) of the current financial year (FY-18 i.e., from 1st April 2017 to 31st March 2018), the country’s fiscal deficit touched 91,3% of the full-year budget estimate, as compared to 83.9% during the same period in the previous fiscal year.
This data is released by Controller General of Accounts.
What is Deficit?
The deficit which reflects the excess of expenditure over revenues was Rs 4.99 lakh crore in absolute terms during the April-September Period.
After seeing this result, Government’s target of reducing fiscal deficit to 3.2 of the Gross-Domestic Product by March-end 2018 looking unambitious.
6 Months high: Infra growth at 5.2% on better coal, gas performance
EIGHT CORE sectors grew at a six-month high of 5.2 % in September, helped by a robust performance in coal, natural gas and refinery segments.
The Eight Infrastructure sectors are: –
- Crude Oil
- Natural Gas
- Refinery Products
- Cement, and
Last year in the same month i.e., September, eight core sectors had witnessed a growth of 5.3%.
This data is released by Ministry of Commerce and Industry.
Bifurcation of growth by sectors
The Production of coal rose by 10.6%.
The Production of natural gas rose by 6.3%.
The Production of refinery products rose by 8.1%.
Crude oil output registered a growth of 0.1 % during the month under review as compared to a contraction of 4.1 % in Sept 2016.
Sharp fall in credit growth to agriculture, services sectors
Credit growth to the agriculture and services segments has seen a fall in the last 12 months.
The RBI on Tuesday said credit to agriculture and allied activities increased by 5.8% in Sept 2017, lower than the increase of 15.9% in Sept 2016.
Credit to the services sector increased by 7.0% in Sept 2017, down from the increase of 18.4% in Sept 2016.
On a year-on-year basis, total non-food bank credit increased by 6.1% in Sept 2017 as compared with an increase of 10.8% in Sept 2016.
Credit to Industry contracted by 0.4% in Sept 2017 as compared with an increase of 0.9% in Sept 2016.
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