ECONOMY OF INDIA

Indian Economy is Twelfth largest in the world and fourth largest by purchasing power parity. In the 21st century, India is an emerging economic power having vast human and natural resources.

Economic Growth: Economic growth has been defined as "an increase in real terms of the output of goods and services that is sustained over a long period of time, measured in terms of value added". Economic growth is a dynamic concept and refers to continuous increase in output.

Factors in Economic Growth: The four factors contributing to growth are

1. human resources (labour supply, education, discipline, motivation)
2. national resources (land, minerals, fuels, environmental quality)
3. capital formation (machines, factories, roads)
4. technology (science, engineering, management, entrepreneurship)

Growth and Development
While the term economic growth referees to increases over time in a country's real output of goods and services i.e. product per capita, the term economic development, in contrast, is more comprehensive. It implies progressive changes in the socio-economic structure. Economic growth and development frequently used interchangeably in economic literatures actually are not identical technically.
Difference Between Economic Growth and Economic Development
Economic Growth Economic Development It indicates quantitative improvement in the economic progress of a country It shows growth in natural income and per capita income over time A country may grow but it may not develop It indicates qualitative improvement in the economic progress of a country It shows not only a sustained increase in national and per capita income but also qualitative changes which leads to higher standard of living. Economic development includes the notion of economic growth. Economic Growth = Size of output (A Quantitative aspect) Economic Development = Size of output + Welfare (A Qualitative aspect)

Gross National Happiness (GNH) : The concept of gross national happiness has been introduced by king of Bhutan, Jigme Singya Wang Chuck, a tiny kingdom on the northern borders of India. The GNH aims to ensure that prosperity is shared across protecting the environment and maintaining a responsive the word happiness, more like what the signers of the Declaration of Independence had in mind when they included the "pursuit of happiness" as an inalienable right equal to liberty and life itself. The index is designed to challenge the well-established indices of countries development. HDI and GDP which are seen as not taking sustainability into account.

GNH Ranking
Ranking	Country	HPI
1	Vanuatu	68.21
2	Colombia	67.24
3	Costa Rica	66.00
4	Dominica	64.55
5	Panama	63.54
6	Cuba	61.86
7	Honduras	61.75
8	Guatemala	61.69
9	El Salvador	61.66
10	St. Vincent of the Grenading	61.37
90	India	42.46

India is the 90th happiest country in the world, behind Bhutan(13), China(31), Sri Lanka(13) and Bangladesh(41). It is ahead of Pakistan(112) and Russia(172). 
Seven of the top 10 happiest countries are from western democracies, while countries in Asia, known for their strong cultural values, family ties and collective identities surprisingly scored low-China(31), Japan(95) and Thailand(32)

Millennium Development Goals to be Achieved by 2015
Achieve universal primary education Reduce child mortality Improve maternal health Combat HIV/AIDS, Malaria and other diseases Ensure environmental sustainability Develop a global patnership for development Eliminate gender disparities in primary and secondary education, preferably by 2005, and in all levels of education by 2015 Halve the proportion of the people suffering from Hunger

Source: facts-about-india.com

Source: newdelhi.usembassy.gov

            facts-about-india.com

For More Details on Indian Economy, Click on Following Link

http://www.capitalco.com.au/Portals/0/Docs/Economic_Data/Economy%20of%20India.pdf

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INTER LIKKING OF RIVERS IN INDIA

The Indian Rivers Inter-link is a proposed large-scale civil engineering project that aims to join the majority of India's rivers by canals and so reduce persistent water shortages in parts of India.

THE PROJECT

The Inter-link would consist of two parts, a northern Himalayan River Development component and a southern Peninsular River Development component.

Himalayan Development

The northern component would consist of a series of dams built along the Ganga and Brahmaputra rivers in India, Nepal and Bhutan for the purposes of storage. Canals would be built to transfer surplus water from the eastern tributaries of the Ganga to the west. The Brahmaputra and its tributaries would be linked with the Ganga and the Ganga with the Mahanadi river. This part of the project would provide additional irrigation for about 220,000 square kilometres and generate about 30 gigawatts of electricity. In theory it would provide extra flood control in the Ganga and Brahmaputra river basins. It could also provide excess water for the controversial Farakka Barrage which could be used to flush out the silt at the port of Kolkata.

Himalayan Component

Kosi - Mechi link

Kosi - Ghaghara link

Gandak - Ganga link

Ghaghara - Yamuna link

Sarda - Yamuna link

Yamuna - Rajasthan link

Rajasthan - Sabarmati link

Chunar - Sone Barrage link

Sone dam - Southern tributaries of Ganga link

Manas - Sankosh - Tista - Ganga link

Jogighopa - Tista - Farakka link

Farakka - Sunderbans link

Ganga - Damodar - Subernarekha link

Subernarekha - Mahanadi link

Peninsular Development

The main part of the project would send water from the eastern part of India to the south and west. The southern development project would consist of four main parts. First, the Mahanadi,Godavari. Krishna and Kaveri rivers would all be linked by canals. Extra water storage dams would be built along the course of these rivers. The purpose of this would be to transfer surplus water from the Mahanadi and Godavari rivers to the south of India. Second, those rivers that flow west to the north of Mumbai and the south of Tapi would be linked. Due to the irregular fluctuations in water levels in the region, as much storage capacity would be built as possible. The water would be used by the urban areas of Bombay and also to provide irrigation in the coastal areas of Maharashtra. Third the Ken and Chambal rivers would be linked in order to provide better water facilities for Madhya Pradesh and Uttar Pradesh. Finally a number of west-flowing rivers along theWestern Ghats simply discharge into the Arabian Sea. As many of these as possible would be diverted for irrigation purposes. The Peninsular part of the project would provide additional irrigation to 130,000 square kilometres and generation an additional 4 gigawatts of power.

Peninsular Component

Mahanadi - Godavari Link

Inchampalli - Nagarjunasagar Link

Inchampalli - Pulichintala Link

Polavaram - Vijayawada Link

Almatti - Pennar Link

Srisailam - Pennar Link

Nagarjunasagar - Somasila Link

Somasila - Grand Anicut Link

Kattalai – Vaigai - Gundar Link

Ken - Betwa Link

Parbati - Kalisindh - Chambal Link

Par - Tapi - Narmada Link

Damanganga - Pinjal Link

Bedti - Varada Link

Netravati - Hemavati Link

Pamba – Anchankovil - Vaippar Link

CRITICISM

·        Critics also point to the enormous costs conservatively estimated at some US$ 140b which India cannot afford to spend.

·        The change in elevation (a minimum of 100 m, generally increases towards the south) from the plains of northern India to the Vindhya and Satpura ranges and the Deccan Plateau beyond them, pose a major challenge to the project; as the water would have to travel upwards in order to reach Maharashtra and southern India.

STATED BENEFITS

• Alleviating droughts and flood control.
• Cheap water for irrigation.
• Availability of drinking water.
• Generation of hydroelectric power.
• Allowing more inland navigation.
• Employment generation.
• Fostering a spirit of national integration.

INTERLINKING : SALVATION OR FOLLY

• Riparian rights: conflict between states (as- kauveri and Mahanadi issue) have to be resolved. In addition worry of Bangladesh and Nepal have to be taken into account.
• Financing: Raising 5.6 lakh crores of rupees is a tough task and if created maintenance of huge asset is a problem. Fear of privatization of water resources.
• Flood period: Idea of networking flood water to the deficient basin does not consider the surplus period of donor area and deficient period of recipient area.

• Desertification: Prevention of natural flooding may led to desertification as there will be loss of fertile soil.
• River pollution: Reducing the flow of river by diversion will increase the concentration of pollutants in the river.
• Security: Security of network will be an enormous load on security forces of central and state governments. As canal can be easily breached by manual or natural activities.
• Land acquisition and displacement: Misery and injustice to the displaced people in obtaining compensation due to systemic corruption.

• Technical feasibility: The slope, altitude and other topographical aspects have to be considered. (e.g. for Ganga, Patna is diversible surplus but for raising water to Vindhya chain i.e. 2860 ft. high enormous amount of power is required).

PRICE TAG

Financial cost :

1.      5.6 L Crores Rs :

2.      250% of India’s tax revenue in 2002

3.      1/4^th of India’s annual GDP

4.      Twice the entire irrigation budget of India since 1950

Rehabilitation Cost :

      1. Estimated that 8,000 sq. km. of land affecting the thousands of villages and towns

    2.  33 mn of people have been displaced in India during the last 50 years most have not been rehabilitated and ILR will also displace million of people from the most needy section.

Environmental Cost :

  1.    50,000 ha of forest to be submerged only by peninsular link.

   2.      Intensive irrigation in unsuitable soils will lead to water logging and salinity.

   3.   Highly polluted rivers will spread toxicity to other rivers.

4.     River system will be altered catastrophically creating droughts and desert.

     Doubtful Role of Government Agencies :

1. Claimed that 35 mn ha of dry land regions will be brought under irrigation but the areas not clearly identified.
2. No clear answer to the issue of displacement and resettlement.
3. The reports regarding the feasibility of the  interlinking not made public.

• KEN BETAWA LINK:

1. Not yet clear, which is surplus basin and which is deficit.
2. 1991 census data used for the implementation in 2005.
3. No proper assessment of the ecological and social aspects.
4. Only 3 dams figured in the report out of 10.

Alternatives to ILR :

1. Rainwater harvesting and conservation of water resources : Changes in topography, soil system and runoff flow pattern in a changing climatic environment is considered. Not only stored rain water but soil erosion is also prevented.
2. Recharging ground water reservoir : Skills have to be developed for arresting rain water where it falls and allowing it to recharge these ground water reservoirs.
3. Large scale utilization of ground water in deltas : practically feasible and initiatives for borewell development and irrigation needed with responsibility lying .
4. Community participation: Approaches of reducing water consumption by the affluent in the cities and reducing the wastage of water by the farmers in their field can be attempted.

Source: 1. Wilipedia
             2. http://www.downtoearth.org.in

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DISABLED CHILDREN MUST HAVE SAY IN SCHEMES: UNICEF

This year, UNICEF’s State of the World’s Children Report has called on nations to set targets to include children with disabilities in the mainstream.

India, which has signed and ratified the United Nations Convention on the Rights of Persons with Disabilities and Optional Protocol, now needs to promote home-based care, provide services for children with disabilities and end institutionalisation, stated the report.The report was released by Social Welfare Minister B.Valarmathi.

It said that a definition of disability should go beyond mere medical classification and incorporate social determinants. It sets a framework to ensure that health and disability are seen within the broader context of social barriers. Since functioning and disability occur in certain contexts, it should be meaningful to assess not only bodily but also the societal and environmental factors at play, it said.

The report is based on the International Classification of Functioning, Disability and Health of the WHO.

“We need to place the problem at the forefront and create a supportive environment for children with disabilities; an atmosphere free from exclusion, one that would encourage them to grow and reach their natural potential,” said Satish Kumar, UNICEF chief of field office, Tamil Nadu and Kerala. “Let us take the first step now,” he urged.

The report sought to ensure that children have a say in schemes that affect them.

Counting every single child with disability is very important, Dr. Satish Kumar stressed. One widely used global estimate puts the number of children with some disability at 93 million. However, there are varying estimates for the numbers in India. According to Census 2001, 2.13 per cent of India’s population is disabled, but the world report on disability 2011 states that about 25 per cent of the population in India is disabled.

Source: www.thehindu.com 

For details of Promoting the rights of Children with disabilities by UNICEF, click on following link

http://www.un.org/esa/socdev/unyin/documents/children_disability_rights.pdf

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MANGROVES OF INDIA

The word "Mangrove" is considered to be a combination of the Portuguese word "Mangue" and the English word "grove". Mangroves are salt-tolerant plants of tropical and subtropical intertidal regions of the world. The specific regions where these plants occur are termed as 'mangrove ecosystem'. These are highly productive but extremely sensitive and fragile. Besides mangroves, the ecosystem also harbours other plant and animal species.

Anthropological pressures and natural calamities are the enemies of the ecosystem. Growing industrial areas along the coastlines and discharge of domestic and industrial sewage are polluting these areas. Many studies have highlighted these problems and the conservation efforts are being considered.

Experiences have proved that the presence of mangrove ecosystems on coastline save lives and property during natural hazards such as cyclones, storm surges and erosion. These ecosystems are also well known for their economic importance. They are breeding, feeding and nursery grounds for many estuarine and marine organisms. Hence, these areas are used for captive and culture fisheries. The ecosystem has a very large unexplored potential for natural products useful for medicinal purposes and also for salt production, apiculture, fuel and fodder, etc.

The distribution of mangrove ecosystem on Indian coastlines indicates that the Sundarban mangroves occupy very large area followed by Andaman-Nicobar Islands and Gulf of Kachch in Gujarat. Rest of the mangrove ecosystems is comparatively smaller. However, good number of studies has been carried out in almost all ecosystems. Over 1600 plant and 3700 animal species have been identified from these areas.

THREATS TO MANGROVE ECOSYSTEM

The threats to the mangrove ecosystem could be broadly grouped into two: Natural and Anthropogenic. These factors may affect the system as a whole or any one entity within the system, etc. The natural threats include: Climatic changes, Cyclones and Physical processes. Diseases, deterioration, pollution, grazing, agriculture, aquaculture and human encroachment (including reclamation), etc., are considered as the anthropogenic threats to the ecosystem.

MANGROVE IN INDIA 

According to a status report of the Government of India publication, the total area of the mangroves in India, was reckoned at about 6,740 km2. This covered about 7% of the world mangroves (Krishnamurthy, 1987) and 8% of the Indian coastline (Untawale, 1987). But a recent Indian Remote Sensing Data (Nayak, 1993) showed that the total area of the mangroves decreased to 4,474 km2 (Table. 1). The values shown by satellite data shows a decrease in the mangrove area, which may be due to several reasons such as

a.     grazing by domestic cattles and exploitation of mangrove woods for fuel and timber

b.     the neo-tectonietc movement of river courses

c.  abatement of upstream freshwater discharges due to construction of dams and reservoir

d.  rapid trend of reclamation of mangrove forests for habitations

e.     pollutant discharges from cities and industries etc.

Source : http://agritech.tnau.ac.in

For more info, refer roport by Central Water Commission on Mangrove forest in India. To get this, click on following link.

http://cwc.gov.in/CPDAC/Paper_Research_Work/Paper%20Research%20Work%20.pdf 

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SIACHEN CONFLICT

Image: siachenglacier.com

The Siachen Conflict, sometimes referred to as the Siachen War, is a military conflict between India and Pakistan over the disputed Siachen Glacier region in Kashmir. A cease-fire went into effect in 2003. The conflict began in 1984 with India's successful Operation Meghdoot during which it wrested control of the Siachen Glacier (unoccupied and not demarcated area). India has established control over all of the 70 kilometres (43 mi) long Siachen Glacier and all of its tributary glaciers, as well as the three main passes of the Saltoro Ridge immediately west of the glacier—Sia La, Bilafond La, and Gyong La. Pakistan controls the glacial valleys immediately west of the Saltoro Ridge. According to TIME magazine, India gained more than 1,000 square miles (3,000 km²) of territory because of its military operations in Siachen.

The Siachen glacier is the highest battleground on earth, where India and Pakistan have fought intermittently since April 13, 1984. Both countries maintain permanent military presence in the region at a height of over 6,000 metres (20,000 ft). More than 2000 people have died in this inhospitable terrain, mostly due to weather extremes and the natural hazards of mountain warfare.

The conflict in Siachen stems from the incompletely demarcated territory on the map beyond the map coordinate known as NJ9842. The 1972 Simla Agreement did not clearly mention who controlled the glacier, merely stating that from the NJ9842 location the boundary would proceed "thence north to the glaciers." UN officials presumed there would be no dispute between India and Pakistan over such a cold and barren region.

 Source: Wikipedia

For further readings, refer following links

http://www.ipcs.org/pdf_file/issue/IB125-Ploughshares-Gurmeet.pdf

http://www.irs.org.pk/spmay12.pdf

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THE CHINA-INDIA BORDER ISSUE 2013

Image: newsinfo.inquirer.net

Sino-Indian Border Dispute and Their Competitive  Symbiotic  Relationship

KEY POINTS

1. Sino-Indian relations are extremely important, but are complicated by a vnumber of issues, especially the ongoing border dispute that was highlighted  by the recent confrontation between Chinese and Indian troops.

 2. China and India have never reached a consensus on the position of the LAC  since the boundary conflict in 1962. They have never delimited the LAC, let  alone a formal border.

 3. India is moving towards closer relations with the US, because of the mistrust  of China brought about by the Indian mass-media and some strategic Indian  scholars.

 4. China and India are developing, both economically and strategically, and they  have developed a symbiotic relationship. The US is moving closer to India in  an effort to counterbalance China’s growing influence.

 5. Despite some areas of complaint, the two economies complement one  another. There is ample scope for cooperation in areas such as finance and  the construction of infrastructure

 6. India’s defence budget is being heavily slanted towards the Navy and its role  in the Indian Ocean

The Ladakh Stand-off: The New Norm in Sino-

Indian Relations?

KEY POINTS

1. Ladakh-type ‘incursions’ and stand-offs will constitute the new norm along  the disputed Sino-Indian boundary.

2. Improved bilateral military confidence-building measures (CBMs) and more  frequent diplomatic interaction will therefore, be needed to deal with the  new reality.

3. China’s India policy is beginning to acknowledge India’s rise, but seems as yet  unable to shake off suspicions created by the Indo-US relationship.

4. India’s China policy is increasingly confident and geared to meet the  challenges posed by its northern neighbour

   Source: futuredirections.org.au

   For details of Resolving the India-China Boundary Dispute, refer followink link

      http://www.observerindia.com/cms/sites/orfonline/modules/occasionalpaper/attachments/op_33_1337324255608.pdf

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SHOME COMMITTEE RECOMMENDATIONS

Image: thehindu.com

Major Recommendations of Expert Committee on GAAR Accepted

The Central Government has carefully considered the report of the Expert Committee on General Anti Avoidance Rules (GAAR) and accepted the major recommendations of the Expert Committee with some modifications. This was announced by the Union Finance Minstar Shri P.Chidambaram here today in a press conference. The Finance Minister said that the following decisions have been taken by Government in this regard:

(i)           An arrangement, the main purpose of which is to obtain a tax benefit, would be considered as an impermissible avoidance arrangement.  The current provision prescribing that it should be “the main purpose or one of the main purposes” will be amended accordingly.

(ii)          The assessing officer will be required to issue a show cause notice,containing reasons, to theassessee before invoking the provisions of Chapter X-A.

(iii)        The assessee shall have an opportunity to prove that the arrangement is not an impermissible avoidance arrangement.

(iv)      The two separate definitions in the current provisions, namely, ‘associated person’ and ‘connected person’ will be combined and there will be only one inclusive provision defining a ‘connected person’.

(v)         The Approving Panel shall consist of a Chairperson who is or has been a Judge of a High Court; one Member of the Indian Revenue Service not below the rank of Chief Commissioner of Income-tax; and one Member who shall be an academic or scholar having special knowledge of matters such as direct taxes, business accounts and international trade practices.  The current provision that the Approving Panel shall consist of not less than three members being Income-tax authorities or officers of the Indian Legal Service will be substituted.

(vi)  The Approving Panel may have regard to the period or time for which the arrangement had existed; the fact of payment of taxes by the assessee; and the fact that an exit route was provided by the arrangement. Such factors may be relevant but not sufficient to determine whether the arrangement is an impermissible avoidance arrangement.

(vii)  The directions issued by the Approving Panel shall be binding on the assessee as well as the Income-tax authorities.  The current provision that it shall be binding only on the Income-tax authorities will be modified accordingly. 

(viii)     While determining whether an arrangement is an impermissible avoidance arrangement, it will be ensured that the same income is not taxed twice in the hands of the same tax payer in the same year or in different assessment years.

(ix)   Investments made before August 30, 2010, the date of introduction of the Direct Taxes Code, Bill, 2010, will be grandfathered.

(x)         GAAR will not apply to such FIIs that choose not to take any benefit under an agreement under section 90 or section 90A of the Income-tax Act, 1961. GAAR will also not apply to non-resident investors in FIIs.

(xi)        A monetary threshold of Rs. 3 crore of tax benefit in the arrangement will be provided in order to attract the provisions of GAAR.   

(xii)       Where a part of the arrangement is an impermissible avoidance arrangement, GAAR will be restricted to the tax consequence of that part which is impermissible and not to the whole arrangement.

(xiii)     Where GAAR and SAAR are both in force, only one of them will apply to a given case, and guidelines will be made regarding the applicability of one or the other.

(xiv)     Statutory forms will be prescribed for the different authorities to exercise their powers under section 144BA.

(xv)      Time limits will be provided for action by the various authorities under GAAR. 

(xvi)     Section 245N(a)(iv) that provides for an advance ruling by the Authority for Advance Rulings (AAR) whether an arrangement is an impermissible avoidance arrangement will be retained and the administration of the AAR will be strengthened.

(xvii)    The tax auditor will be required to report any tax avoidance arrangement.

 Source: http://pib.nic.in 

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