Class Notes 4 You

Investment is defined as the total value of capital goods produced in the economy (which is also called capital formation) plus net of export and import of capital goods. Gross fixed capital formation is defined as the production of machinery, equipment, new construction and intellectual property rights. Capital formation is important for any economy as it helps in boosting output and income. Following is the past trend of Gross fixed capital formation (investment) in the economy in the last few years. When the government decides that a certain project should be done through PPP model then it first selects a private party and signs a “Concession Agreement” (also called PPP Agreement) with the private party. This agreement provides details as to what would be the roles and responsibilities of the private sector and the government sector during the entire life of the project. The following are the important factors to be kept in mind while designing these agreements : • All the risks whi...

Infrastructure has been recognized as one of the most important enablers of economic growth. The significance of infrastructure creation has all the more increased in the current context of post covid19 scenario when we have experienced a negative growth of GDP in the last financial year. Infrastructure spending leads to rapid and inclusive economic growth as it possesses strong forward and backward linkages and a very high multiplier effect. Increase in infrastructure investment like railway, roads, ports, airport affects the economy in two ways: 1. In the short run, it boosts aggregate demand and crowds in (pulls in) private investment due to the complementary nature of infrastructure services. 2. In the long run, a supply side effect also kicks in as the infrastructure-built feeds into the productive capacity of the economy. Infrastructure is considered as the backbone of the country’s economy. It leads to inclusive growth in the following ways: 1. Spending in transportation infrast...

Land reform usually refers to redistribution of land from rich to poor. More broadly, it includes regulation of ownership, operation, leasing, sales and inheritance of land. Land reforms have been considered as important tools of socio-economic change in India. They constituted an important component of the strategy of agrarian reform that was designed to transform and modernise Indian agriculture. As land is state subject, the various reforms like abolition of zamindari, tenancy reforms and ceiling on size of landholdings and its distribution were implemented by the states which helped the marginal and small farmers in the following ways: • Tenancy reforms, in total, led to more than one crore tenants getting ownership right in Assam, West Bengal, Kerala, Tamil Nadu and Gujarat. • More than 10 lakh individuals became beneficiary (surplus land distributed to them) from the ceiling laws implemented in West Bengal. • The landlords had no personal interest in the lands they owned and also...

Food processing is a sunrise sector in India and is recognized as a Special Focus Sector in the National Manufacturing Policy. It has great potential for driving the rural economy, synergizing between agriculture, industry and consumer. But it is marred with various challenges which need to be addressed first. Challenges . Inadequate infrastructure facilities. Seasonality of operations, perishability and low-capacity utilisations. Institutional gaps in supply chain. Lack of focus on quality and SPS measures. Requirement of multiple clearances for setting up of food processing units. Government Initiatives for FPIs. 1. Pradhan Mantri Kisan Sampada Yojna (PMKSY): Umbrella scheme under MoFPI providing a host of financial assistance to FPIs. Sub-schemes include; Mega Food Parks. Integrated Cold Chain and Value Addition Infrastructure. Infrastructure for Agro-processing Clusters. Operation Greens, etc. 2. Agricultural Marketing Infrastructure: Sub-scheme of Integrated Scheme for Agricultur...

Food processing is a sunrise industry in India and is increasingly seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and agriculture. It contributes 9% to manufacturing GDP and has an annual growth rate of 8%. But this industry is facing the following challenges: Inadequate infrastructure facility like cold storage and food parks Lack of processing facilities leading to less value addition  Lack of technology and applied research Lack of skilled manpower Lack of organized retail  Regulatory challenges: Food supply chain is regulated through APMC acts of States. Multiple clearances are required for setting up of food processing units. India possesses a large arable land resource of 160 million hectares with 127 Agro-climatic zones and has 46 of the 60 soil types in the world. It is the largest producer of milk and second largest producer of fruits and vegetables. Hence there exist numerous opportunities and growth...

Public Distribution System (PDS) is a poverty alleviation programme, contributing towards the welfare of poorer sections by providing them adequate quantities of essential items at affordable prices. But it has proved to be ineffective until now, as evident from the fact that Global Hunger Index, 2021 ranked India 101st.  Issues in PDS. Inaccurate Identification of beneficiaries. Hoarding and black marketing of essential commodities Leakages in the delivery system. Financial inefficiency- cost of procuring and delivering food grains is about six times its sale price. Shortfall in the storage capacity leading to wastage of food grains. Measure taken by Government . Revamped PDS (RPDS), to improve reach and strengthen PDS infrastructure. Targeted PDS (TPDS), to focus on ‘Poor in all areas’: Antyodaya Anna Yojana (AAY), a sub-scheme of the TPDS, to benefit the poorest of the poor. Enacted National Food Security Act (NFSA), 2013, making the Right to Food a justiciable right. One nation...

Govt. of India in 2013 enacted The National Food Security Act to provide subsidized food grains to 75% of the rural population and 50% of the urban population totalling around 84 crore people. Following are some of the important features of the Act: • The Antyodaya Anna Yojana (AAY) beneficiaries are provided 35 kg per month per family @ Rs. 3/kg rice, Rs. 2/kg wheat and Rs. 1 per kg coarse grains.  • Priority households are provided 5 kg per person per month @ Rs. 3/kg rice, Rs. 2/kg wheat and Rs. 1 per kg coarse grains. • Women are provided free meal during pregnancy and up to six months after child birth through Aanganwadi and Rs. 6000 in instalments. • Children aged 6 months to 6 yrs are provided free meal at local Anganwadi.  • Children aged 6 yrs to 14 yrs are provided mid-day meal scheme at school. • The eldest woman who is not less than 18 years of age, in every eligible household, are made the head of the household for the purpose of ration cards.  • Food securit...