Major types of economic system in the world.

An economic system is a network that forms the economic relationships between individuals in society. In other words, how the people of a nation come together to create a complex whole and conduct economic transactions with each other.

An initial surge in demand can create a multiplying effect that ripples throughout the economy. This surge in demand sends a signal to the whole supply chain that more of these products are required, so more are made. An economic system can change the way by which these supply and demand signals transfer through society. For instance, some economic systems may be more restrictive and place tariffs or quotas on imports. In turn, this can affect the signal between, buyer, seller, and supplier.

These are broad types of economic systems but will capture the different varieties that exist in the world today.

Traditional Economic System

Out of the four types of economic systems, the traditional economic system is the most basic. There is no involvement by the government, so people are largely left to conduct economic activities without influence. However, it is a very basic system that relies on basic customs and traditions. Under a traditional economic system, subsistence is the main driver for economic trades, whilst profit is not the main motive. Instead, this system relies on communities and the cohesion between them to provide and sustain each other.

Socialism – Command economic system

A command economic system is often referred to as a socialist or communist system. Under this structure, power is centralised either to the government or a sole ruler. In turn, they decide the rules of the game and command how economic interactions take place. Under a command economic system, central powers own the means of production, so can, therefore, shift it to where they see fit. For instance, if the nation’s central powers want to start making more steel, they may move workers from a construction site and transfer them to a steel factory.

Capitalism – Market economic system

A capitalist economic system is where the means of production is owned and controlled by private enterprise rather than the government. Instead of government dictating what goods and services should be produced, these are driven by supply and demand mechanisms. The capitalist economic system relies on private individuals using capital to produce goods and return a profit. In turn, this increases the private enterprise’s capital stock. The issue with this however is that many individuals can amass great economic power and wealth. Not only does this create social discontent, but can also lead to unscrupulous business practices.

Mixed Economy

A mixed economy is one of the most common forms of economic systems in the world today. We see it in many developed nations such as the US, Japan, and throughout most of Europe. It is simply a mixture of capitalist and command economic systems. A mixed economic system often has some level of private ownership of the means of production. However, in a mixed economy, some industries are controlled by the government, whilst others are privately owned. 

India's Foreign Direct Investment(FDI) to be accumulated to whopping $100 billion by the end of this fiscal year.

India is on track to attract $100 billion in foreign direct investment (FDI) in the current fiscal on account of economic reforms and ease of doing business, the government said on September 24, 2022.

In 2021-22, the country received the “highest ever” foreign inflows of $83.6 billion.

“This FDI has come from 101 countries, and invested across 31 union territories and states and 57 sectors in the country. On the back of economic reforms and Ease of Doing Business in recent years, India is on track to attract $100 billion FDI in the current FY (financial year),” the commerce and industry ministry said in a statement.

The statement also mentions that the government has installed a liberal and transparent policy to attract foreign investment. Currently, most sectors of the Indian economy are open to FDI under an automatic route.

The Foreign Direct Investment (FDI) in India can be made under two routes- automatic and government routes. Under the automatic route, the investor requires no or very less permissions from the Reserve Bank of India (RBI) or from the Government of India to invest.

Under the government rules, permissions from the appropriate authorities of the government or the RBI are required to invest in the country.

The reform measures include liberalization of guidelines and regulations, in order to reduce unnecessary compliance burdens, bring down costs and enhance the ease of doing business in India, the statement added.

Make in India initiative is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’. Make In India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well. Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors, was launched in 2020-21 as a big boost to Make in India initiative.

Depreciating Rupee.

The Indian rupee on 22 September fell to all-time low of 81.20 against US dollar in early trade on the back of US Treasury yields climbing to fresh multi-year highs and dollar demand from importers. Currently the rupee had suffered its biggest single session percentage decline since February, due to lack of aggressive intervention by the Reserve Bank of India (RBI) and a very U.S. hawkish Federal Reserve rate outlook, traders said.

One of the reasons that RBI couldn’t rescue the fall in the currency was inadequate liquidity in the banking system which is currently in deficit. RBI’s intervention in the spot market could make the case worst for the banking system liquidity amid short-term interest rates going higher.

The Central bank in a an attempt to handle the depreciating rate of rupee, frequently burnout forex. In just eight months between mid-January and mid-September this year, forex reserves have depleted by almost $90 billion, or approximately an average of $11 billion a month. For the week-ended September 16, India’s forex reserves stood at $545.65 billion compared with $634.97 billion in the week-ended January 14.

However, faced with dwindling forex reserves, the Reserve Bank of India (RBI) may not be aggressive in defending the Indian currency and allow it to catch up with other emerging market (EM) currencies that have dropped more.

National Logistics Policy.

National logistics policy was initially mentioned in 2020 by Finance Minister Nirmala Sitharaman in her address regarding the budget. The government claims that there are efforts on to implement an integrated and technologically enabled approach to logistics operations, which will be effective throughout the entire process and be useful in lowering logistics costs in the nation from the current levels of 13–14% of GDP.

The Union Cabinet headed by Prime Minister Narendra Modi approved the National Logistics Policy which seeks to cut transportation costs by promoting seamless movement of goods across the country.

An umbrella policy for the logistics sector has been in the works for around three-four years. It was felt that the logistics cost in India is high compared to other developed economies. India’s logistics cost as a proportion of the Gross Domestic Product (GDP) is believed to be around 13-14 per cent. The government now aims to bring it down to single digits as soon as possible.

The primary areas of this National logistics policy 2022 will be process re-engineering, digitization, and multi-modal transportation. It is a key decision since excessive logistical costs affect how competitive domestic products are on the global market.

The National logistics policy 2022 was deemed necessary because India has higher logistics costs than other industrialised nations. India must drastically cut its logistics costs if it wants to increase the competitiveness of its exports and domestic products.

The goal of lower logistics costs is to increase economy-wide efficiency, allowing for value addition and business. The policy lays out an extensive interdisciplinary, cross-sectoral, and multijurisdictional framework for the growth of the entire logistics ecosystem in an effort to solve concerns of high cost and inefficiency.

What does 'Moonlighting' mean?

The majority of IT firms have strengthened their opposition to moonlighting and threatened to fire employees who are found to be working two jobs. Moonlighting could be viewed as unfair competition if an employee’s contract stipulates non-compete restrictions and exclusive employment.

Significant IT business, Infosys, has cautioned its employees against accepting a second job without first informing the employer. Infosys recently reminded all of its employees to study their employment contracts before accepting a different job in one of the letters sent to staff members by the HR department. In fact, the employer also issued a warning that if an employee accepted a second job during or after working hours, they risked being fired. The term that IT corporates uses to describe this practice is ‘moonlighting’.

But what is moonlighting?

Moonlighting means taking up a second job or multiple other work assignments apart from one’s full-time job. The practice of working for other organisation while committing oneself to one’s primary workplace, typically without the employer’s knowledge, is termed as ‘moonlighting’. Companies have opposed the practice, saying that employees doing multiple jobs can impact their productivity.

Moonlighting has become a topic of debate in the IT industry as working from home became the normal norm during the Covid-19 pandemic, which is believed to have led to a rise in dual employment.

Businesses disagree with the approach, claiming that having staff perform numerous tasks can reduce productivity. As working from home became the norm during the Covid-19 pandemic, which is thought to have caused an increase in dual employment, moonlighting has come under discussion in the IT industry.

International Day of Peace.

In 1981, the United Nations General Assembly declared the third Tuesday of September as International Day of Peace. This day coincided with the opening day of the annual sessions of the General Assembly. The purpose of the day was and still remains, to strengthen the ideals of peace around the world.

Two decades after establishing this day of observance, in 2001, the assembly moved the date to be observed annually on September 21. So, beginning in 2002, September 21 marks not only a time to discuss how to promote and maintain peace among all peoples but also a 24-hour period of global ceasefire and non-violence for groups in active combat.

Peace is possible. Throughout history, most societies have lived in peace most of the time. Today, we are much less likely to die in war than our parents or grandparents. Since the establishment of the United Nations and the creation of the Charter of the United Nations, governments are obligated not to use force against others unless they are acting in self-defense or have been authorized by the UN Security Council to proceed.

Life is better in a world where peace exists and, today, we look to those who have been peacemakers and peacekeepers to learn what we can each do individually to make the world a more peaceful place.

The United Nations invites all nations and people to honour a cessation of hostilities during the day and to otherwise commemorate the Day through education and public awareness on issues related to peace.

Every year, the International Day of Peace is celebrated under a specific theme. This year, according to the UN, the theme of World Peace Day 2022 is ‘End racism , Build peace.’ There will be many events, workshops, and educational seminars on the eve of World Peace Day 2022 to create awareness among people about how to develop a world free of racism and racial discrimination.

According to the United Nations, “Racism continues to poison institutions, social structures, and everyday life in every society. It continues to be a driver of persistent inequality. And it continues to deny people their fundamental human rights. It destabilises societies, undermines democracies, erodes the legitimacy of governments, and the linkages between racism and gender inequality are unmistakable.”

Stop buying, start adopting.

 At Kotul, Maharashtra, on June 12, 2022. A little kid named Viraj and his sister out for a morning stroll at six in the morning. They were attacked by a pack of stray dogs at a given distance, particularly Viraj. His sister made a valiant effort to save her, but she was unable to stop the dogs from attacking. A pack of stray dogs attacked and murdered Viraj. It sounds ridiculous. There are other incidents documented online, including one that happened on May 27, 2022, when a pack of dogs attacked an alone toddler. After removing the kid from a private hospital unit on June 28, a stray dog murdered the 2-day-old youngster. It is hazardous.

People forget about this issue since it never receives adequate attention. Thus, there are no measures in place to manage this.

Over 30 million stray dogs are said to exist in India. Free-roaming pets is the term used by the World Health Organization (WHO).


A stray dog is a who?


Three categories are used to group this.

 

  • An unrestricted dog can move wherever they want but is partially dependent on humans for food. This dog falls under category one.

  • An unrestricted dog who is completely independent and not dependent on humans for their food. Those dogs can find their food in the garbage. These dogs fall under category two.

  • The third category of dogs is those who have been abandoned by their owners. 


The canines in groups two and three are very different from one another. The dogs in the second category know how to live, while the abandoned dogs do not. They typically pass away from sickness or in accidents.

India has a far greater percentage of pet abandonment than the rest of the globe, according to the 2021 State of Pet Homelessness Index study. In India, more than 50% of both present and former pet owners admitted to having abandoned or surrendered at least one animal. This explains why there are so many street dogs around.


The issue is not that the government is inaction. The government is requiring them to follow some regulations.


Animal Welfare Board of India (AWBI) strives to stop the mistreatment of animals. Dog feeders were put in place, which give stray dogs food.

What is the solution to these problems?


  • sterilize a dog as a pet, A portion of your pet’s reproductive organ is surgically removed during sterilization to prevent it from reproducing in the future. The majority of animals that are sterilized are male and female dogs, cats, rabbits, and guinea pigs. Castration, the removal of the testicles from male animals, is a widespread practice
  • Please vaccinate your dog as part of the immunization program if you own one. because a variety of disorders may impact it. Therefore always remember that prevention is preferable to treatment.
  • Enforce pet management regulations to prevent dog owners from leaving their animals behind.
  • Habitat management: Stop spreading needless trash if you want to maintain a healthy habitat.
  • control canine reproduction, There are two ways to stop a female dog from going into heat: Ovariohysterectomy (spay) surgery, number one: Recommended. The uterus and both ovaries are surgically removed during an ovariohysterectomy, sometimes known as a spay procedure.
  • Start adopting stray animals; India is home to 30 million strays. There are around 1.3 billion people living in our nation. If a group of at least four people starts caring for at least one dog, then further options are not necessary.

Feed one dog instead of one hundred if you can’t. A stray dog’s existence is an extremely miserable one. They have no hope when they get up since they never know when an accident may claim their lives. They saunter about looking for food and water. To be safe, they never stop observing the goings-on around them. Start adopting them and save them.

Credit:-

  1. Dhruv Rathee.

  2. Canine Distemper (Hardpad Disease) – Dog Owners.

  3. Sterilizing your pet.

  4. Gonad-Sparing Surgical Sterilization in Dogs – Frontiers.

How UPI is a financial revolution.

United Payment Interface (UPI), a term unheard or unbelieved until April 2016, but in Modern India, UPI is the flag-bearer of the ongoing Financial Revolution.

From a tea vendor selling a Rs 10 Cutting Chai to a showroom with a pricey product range, a large section of our society has adapted to UPI. It actively utilises the mechanism for seamless payments. In the early stages, a year after the launch of UPI, the total number of payments was 6% compared to 36% of Card payments. However, in FY 2021, UPI’s share expanded to 63%, while the percentage of Card payments shrunk to 9%. The progressive advancement of UPI has not just constructed an efficient payment instrument, but it has connected millions on an inclusive and well-structured Digital platform.

It must be noted that the underlying infrastructure of Immediate Payment Service (IMPS) has been paramount for UPI’s grand success. Adopting a UPI ID rather than entering bank account numbers and IFSC codes has made transactions effortless. Integration with Bharat Bill Payment System (BBPS) for recurring Bill Payments has been crucial in creating an innovative platform.

The Indian real-time payments market is well developed when directly compared with other markets like the US, the UK, Canada and Australia, according to a report published by ACI Worldwide. The report also forecast that the share of all transactions occurring via real time instrument was expected to increase to 70.7 per cent in 2026 from the present 31.3 per cent. The report predicted that in 2026, business and consumer level benefits due to India’s real time instant payment was expected to reach $92.4 billion, adding, that it will have an impact of $54.9 billion or 1.12 per cent in India’s GDP.

Inflation and its types.

Inflation is a general progressive elevation in the prices of services and goods within the economy. It denotes the rate of prices’ elevation within a specific duration. Inflation reduces the purchasing power of money since every unit of currency buys lesser services and goods. Generally, when inflation occurs, the income usually stays the same; however, the level of spending increases. The definition of inflation is the reduction of the purchasing power of a particular currency over a specific timeframe. Inflation is quantitatively estimated by reflecting the elevated average level of prices of selected services and goods within an economy over a given duration. Inflation in economics refers to the collective elevation in money supply, in prices or money incomes. Thus, inflation is an excessive increase in the general level of prices. The inflation concept in common parlance outlines inflation as a quantifier of the elevating rates of services and goods within the economy. In this light, inflation is deemed to occur due to an increase in prices when there is an elevation in the cost of production. However, inflation can occur when there is a demand for particular services and products because the buyers are willing to purchase the product at higher prices. Inflation also declines the value of money.

Types of Inflation.

Demand-Pull Inflation 

Demand-pull Inflation emerges when the total demand for goods and supply is higher than the capacity of production in the market. An increase in demand with constant rate production creates a demand-supply gap. In this type of Inflation, demand is much higher than the production, which in turn increases the prices of goods and services.

Cost-Push Inflation 

Sudden shortfall of supply leads to a surge in the cost of production, which increases the rate of Inflation. For example, soap and shampoo prices may rise if the chemicals used in making these become costlier. This is known as cost – pull Inflation. 

Built-in Inflation

When the cost of wages of the workers increases, to keep up with their demand, the firm increases the cost of production, which leads to the rise in the cost of goods.

Inflation in India:

In India, the ministry of statistics and program implementation measures Inflation. India’s central bank i.e., The Reserve Bank of India (RBI), limits the inflation rate through its monetary policy by using tools such as repo rate, the reverse repo rate, CRR, etc. Inflation is measured by two indices in India, which is the Consumer Price Index (CPI) and Wholesale Price index (WPI). CPI and WPI measure retail and wholesale level price changes, respectively. CPI measures the rise in prices of commodities and services such as medical care, food, education, etc. WPI captures goods or services sold by a business to smaller businesses for selling further.

Reducing India's Forex reserves.

India’s forex reserves are at an alarmingly low stage and have dropped with the aid of 23 months of use. For the week ending September , India’s overseas foreign exchange (forex) reserves fell to $553. The lowest level in over a year, consistent with figures from the Reserve Bank of India (RBI).

The Reserve Bank of India saved its currency and intervened to save the rupee from falling beyond eighty to the greenback at some point every week whilst the greenback surged to over-decade highs, inflicting India’s forex reserves to plummet to their lowest stage in more than a decade and staining the third consecutive week of decline.

The rupee has fallen from around seventy-four to close to eighty against the greenback, a trend that experts say the RBI has maintained vehemently, echoing a drop in FX reserves of slightly more than sixty-seven billion since the Ukraine disaster and more than eighty billion from all-time highs last year. The effect of the appreciation or depreciation of non-greenback currencies like the Euro, British Pound Sterling, and Japanese Yen held in forex reserves is blanketed within the overseas forex belongings expressed in US dollars.

Experts say that the forex reserves have witnessed a fall as a result of the Reserve Bank of India’s (RBI) intervention to rein the currency volatility. In 2022, the rupee has declined by about 7 per cent, which has also made imports costlier.  Even though India’s forex reserves have seen a decline in the past few months, experts say the situation is not at all alarming. Experts say the country has a significant amount of forex reserves.

Protest in Chandigarh University.

At Chandigarh University in Mohali, there is a sizable demonstration. Giving justice to those girls who are the victims of this popular video is the motivation behind this protest. One of Chandigarh University’s dorm roommates takes 60 recordings of the females bathing. Although it sounds shameful and horrible, this is the reality. The female sends the lad those videos. The lad is from Shimla, the girl claims, and he asked him to shoot those movies. That boy sent those videos around via MMS. It’s terrible.

The girl was speechless as the Warden questioned her again. That establishes her errors. There are some YouTube videos where the girl tries to respond to those queries. Social internet is rife with allegations that a few girls have committed suicide. The fact check and police comments, however, make it very evident that no girl has actually committed suicide. But why were the ambulances sent to the institution, one could wonder? According to the police officer, a couple girls experienced panic attacks and required hospitalization. But they are now fine.

 The police team is thoroughly investigating this matter and an FIR has been filed against the female. Soon after this tragedy was made public, the students began protesting, displaying their sense of oneness. Several students are traveling the path to justice. Now, the situation is a social problem. Because the pupils in that age group are active, they must learn how to use that energy effectively. This matter is being looked into more thoroughly because it involves sensitive information. The search for that boy is urgent for the police. This cannot continue. The students there have received precise instructions from the cops. The experts are discussing this case.

This can’t happen. This was a silly thing to do. The university’s reputation will suffer as a result of this. And because this behavior was inappropriate, the parent will feel humiliated by her daughter. The girl is expelled from the university, and the police are given custody of her.

Role of 'MSME' sector in Indian Economy.

MSME has introduced in the year 2006 in India. There are still some service sector that was not yet included in this sector was included in the definition of the Micro, Small and Medium-sized Enterprises making a historic change to this Act. 

The MSME sector in India gave a major boost to the economy. Over 63 million MSMEs spread across the country contributed 30.5% to India’s GDP in FY19 and 30% in FY20. It also created many employment opportunities. Based on a study conducted by the Ministry of Statistics & PI between July 2015 and June 2016, the MSME sector employed 111 million workers. Compared with large-scale companies, MSMEs aided in the industrialisation of rural areas at minimal capital cost. The sector has made significant contributions to the country’s socio-economic growth and complemented major industries as well. MSMEs account for approximately 40% of India’s total exports, 6.11% of GDP from the manufacturing sector and 24.63% of GDP from the services sector.

The significance of the MSMEs sector can be noted from the fact that it is the second-largest employment provider, after agriculture in India. This sector has proven the instrumental in the growth of the nation, leverage exports, creating huge employment opportunities for the unskilled, fresh graduates, and the underemployed. It also extended the opportunities to banks for giving more credit to enterprises to MSME Sector. The government should take the special care by addressing the importance of MSME in terms of providing more and more MSME Registration advantages by implementing better regulations and enable financial institutions to lend more credit at less interest rate for sustainability of this sector.

To ensure that MSMEs continue to lead the country towards economic growth, the Government of India has from time to time announced various schemes to support the development of this sector. Recently, in view of the economic hardship caused by covid 19, the government has announced few schemes under ‘Aatmanirbhar Bharat’ i.e. Self-reliant India initiative. Accordingly, the criterion for classifying MSME has also been revised. Under the revised criterion, the combined factors of ‘Investment in plant and machinery’ and ‘Turnover’ are required to be considered to determine whether a business should be classified as a micro, small or a medium enterprise. In contrast, earlier the classification of an MSME unit was based only its investment in plant and machinery; and also depending on whether the enterprise was in the manufacturing sector or in the services sector.

International Day for Preservation of Ozone Layer : 16th September.

The world observes September 16th as International Day for the Preservation of the Ozone Layer or World Ozone Day. The day marks the anniversary of the Montreal Protocol which was signed to keep in check Ozone depleting substances. On this day, people from all over the world hold talks and seminars on the ozone layer.  Educators teach students about the benefits of the Ozone layer and special events and activities are organised to spread awareness.

The ozone layer is a fragile shield of gas that protects the Earth from the harmful portion of the rays of the sun, thus helping preserve life on the planet. Ozone is a protective layer that protects us from harmful radiations of the sun. It is crucial for sustaining life on this planet. Montreal Protocol was an effort countries made to collaborate and protect the ozone layer. The principal aim of the Montreal Protocol is to protect ozone layer by taking measures to control total global production and consumption of substances that deplete it.

World Ozone Day 2022 Theme “Montreal Protocol@35: global cooperation protecting life on earth” is the theme of World Ozone Day 2022.

Let us understand what Ozone is and how it is being depleted.

Ozone is made up of three atoms of oxygen. It is highly reactive gas and is represented by O3. It occurs naturally as well as a man-made product in the Earth’s upper atmosphere i.e. stratosphere and lower atmosphere i.e. troposphere. The Ozone layer is present in Earth’s atmosphere (15-35km above Earth) in the lower portion of the stratosphere and has relatively high concentrations of ozone (O3). Naturally, it is formed through the interactions of solar UV radiation with molecular oxygen O2. It reduces the harmful UV radiation reaching the Earth’s surface.

 The main cause of ozone depletion and the ozone hole is manufactured chemicals, especially manufactured halocarbon refrigerants, solvents, propellants, and foam- blowing agents (chlorofluorocarbons (CFCs), HCFCs, halons). Since the early 1970’s, scientists observed reduction in stratospheric ozone and it was found more prominent in Polar Regions. ODS substances have a lifetime of about 100 years.

India's position in Human Development Index(HDI) report.

The Human Development Index 2022 is part of the Human Development Report 2021-2022 released by the United Nations Development Programme. In HDI 2022, 191 countries have been ranked based on their HDI value measured on the basis of 4 indices- life expectancy at birth, mean years of schooling, expected years of schooling, and the Gross National Income (GNI) per capita.

India ranks 132 out of 191 countries in the Human Development Index (HDI) 2021. This shows a decline in its score over two consecutive years for the first time in three decades. In 2020, India ranked 130 with an HDI value of 0.642. Before the COVID-19 outbreak, the HDI value of India was 0.645 in 2018.
This drop in HDI score is consistent with the global trend which shows countries have fallen backward in human development since the outbreak of the COVID-19 pandemic.

With a rank of 132, India is now placed below its south Asian neighbours of Bangladesh (129th), Bhutan (127th), Sri Lanka (73rd) and China (79th). India registered a decline in its HDI score for two consecutive years for the first time in three decades. India’s HDI score of 0.633 placed it in the medium human development category. However, India has improved slightly in the Gender Inequality Index.

However, UNDP says the ranking cannot be comparable as in 2020, the HDI was measured for 189 countries, and this year, the value has been calculated for 191 countries. It also said India’s latest rank reflects global trend as 9 out of 10 countries have fallen backward in human development in the face of multiple crises like Covid-19, the war in Ukraine and dangerous planetary changes.

First step by India to become a major semi-conductor manufacturing hub, Vedanta-Foxconn project .

Semiconductors are materials that have electrical conductivity between conductors generally metals and non-conductors or insulators. Due to their role in the fabrication of electronic devices, semiconductors are an important part of our lives. Anything that’s computerized or uses radio waves depends on semiconductors. Semiconductors are an essential component of electronic devices, enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications.

The country responsible for the most semiconductors in the world is China, Taiwan, South Korea, and Japan. The Indian semiconductor market was valued at USD 27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 percent to reach $64 billion in 2026. But none of these chips is manufactured in India so far.

A joint venture of the Indian conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn signed a Memorandum of Understanding on September 14 2022 with the Gujarat government to set up a semiconductor and display manufacturing unit in the state. The project is worth around 20 billion USD. This upcoming facility will mark the beginning of chip manufacturing in India. This is also strategically important for India because it will reduce our dependence on other countries.

Out of the total investment of Rs 1,54,000 crore, Rs 94,000 crore will go into setting up the display manufacturing unit while Rs 60,000 crore will be invested for the semiconductor manufacturing facility, the official said in event of MoU. The FAB (fabrication facility) manufacturing unit in the state facility in Gujarat would create one lakh job opportunities.

As per the MoUs signed by both parties, the Gujarat government will facilitate the investor in obtaining necessary permissions and clearances from the state departments concerned. Among the subsidies and assistance under the state policy, Gujarat will provide additional capital assistance at 40 percent of the capital expenditure assistance extended by the Centre for the projects approved under the India Semiconductor Mission. One-time reimbursement of 100 percent stamp duty and registration fees paid to the government, fixed water tariff at Rs 12 per cubic meter for five years, and a capital subsidy of 50 percent for a desalination plant are the financial benefits under the new policy.

A massive shortage in the semiconductor supply chain last year affected many industries, including electronics and automotive. To cut dependence on imports from nations like Taiwan and China, the government brought a financial incentive scheme for manufacturing semiconductors in the country. Vedanata-Foxconn is one of the successful applicants for the Production Linked Incentive (PLI) scheme for semiconductors and is also a step towards achieving self-reliance in the semiconductor field for the country.