Author: Eduindex News

Visit us for more news at https://eduindex.org

Health Sector in India

 A sound healthcare system interconnected with long-term factors responsible for inclusive growth is vital for a resilient economy, underscores the Economic Survey 2023-24 tabled by the Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman in Parliament today.

Aligned with the Government’s commitment to ensuring sound health and well-being of all ages through a preventive and promotive healthcare orientation in all developmental policies and universal access to good quality healthcare services, the Survey highlights key initiatives and schemes of the Government to ensure ‘Quality Healthcare for All’.

  • Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY):  Aimed at providing health insurance cover of ₹5 lakh/ year for underprivileged families for secondary and tertiary hospitalization, as of 8th July 2024, 34.73 crore Ayushman Bharat cards have been generated and 7.37 crore hospital admissions have been covered by the scheme. Notably, 49% of the beneficiaries of this scheme are women.
  • PM Jan Aushadhi Kendras: This scheme aims to provide quality medicines at 50-90 per cent cheaper than market rates. Under the scheme, 10,000th Jan Aushadhi Kendra was inaugurated in AIIMS Deoghar last year. 1965 medicines & 293 surgical equipments are available at the kendras.
  • AMRIT (Affordable Medicines and Reliable Implants for Treatment): More than 300 Amrit pharmacies are operating in different States/UTs. These aim to provide subsidized medicines for critical illnesses.
  • Ayushman Bhav Campaign: Launched in September 2023, this campaign aims to saturate selected healthcare services in every village/town across the country and inform citizens about the Government’s flagship schemes. Commendable milestones achieved during the campaign are:
    • 16.96 lakh wellness, yoga, and meditation sessions; 1.89 crore Tele consultations held
    • Free drugs availed by 11.64 crore people and free diagnostics services availed by 9.28 crore people
    • Ante-natal check-up (ANC) and Immunization availed by 82.10 lakh mothers and 90.15 lakh children
    • Seven types of screening (TB, Hypertension, diabetes, Oral Cancer, Breast Cancer, Cervical Cancer and Cataract) availed by 34.39 crore people.
    • 2.0 crore patients consulted general OPD, while 90.69 lakh patients consulted specialist OPD, and 65,094 major surgeries and 1,96,156 minor surgeries were conducted.
    • 13.48 crore ABHA accounts were created, 9.50 crore Ayushman cards were generated, and 1.20 lakh Ayushman Sabhas organized.
    • Cumulative footfall of 20.66 crore in 25.25 lakh health melas (as of 31 March 2024)

 

  • Ayushman Bharat Digital Mission (ABDM): Launched in 2021, the Scheme aims to create a national digital health ecosystem across the country. Under this scheme, 64.86 crore Ayushman Bharat Health Accounts (ABHA) have been created, 3.06 lakh Health Facility Registries generated, 4.06 lakh healthcare professionals registered, and 39.77 crore health records linked with ABHA.
  • eSanjeevani:  Launched in 2019, this scheme for telemedicine for virtual doctor consultations in remote areas has served 26.62 crore patients across 128 specialties at 1.25 lakh Health & Wellness Centres, now known as Ayushman Arogya Mandirs (as Spokes) through 15,857 hubs, as of 9th July 2024.

***

Expenditure on Social Services

 India’s social and institutional progress in recent years has been achieved through an empowering approach to welfare as the new approach focuses on transforming the implementation and cost effectiveness of the Government programmes. The approach comprises targeted implementation of reforms for last-mile service delivery and affordable social security schemes for the unorganized sector workers through schemes such as Atal Pension Yojana (APY). This was stated by the Economic Survey 2023-24 tabled by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman in the Parliament today.

Decline in Multidimensional Poverty

The expenditure on social services has increased from 6.7 % of GDP in 2017-18 to 7.8 % of GDP in 2023-24. The enhanced economic thrust along with better implementation of programmes has led to a sharp decline of Multidimensional Poverty with (National) Multidimensional Poverty Index (MPI) nearly halving from 0.117 in 2015-16 to 0.066 in 2019-21. Resultantly, 13.5 crore Indians are estimated to have escaped multidimensional poverty between 2015-16 and 2019-21, the Economic Survey 2023-24 noted.

The trend is driven by rural India, with the most significant improvements occurring in states like Bihar, Madhya Pradesh, Uttar Pradesh, Odisha and Rajasthan. Uttar Pradesh registered the most significant decline in the number of poor people, with 3.43 crore people escaping multidimensional poverty between 2015-16 and 2019-21.

Reduced Inequality and Decline in Rural-Urban divide

The Economic Survey also points out that the results of various initiatives in the social sector have translated into reduced inequality. The Gini coefficient has declined from 0.283 to 0.266 for the rural sector and from 0.363 to 0.314 for the urban sector in the past decade.

Similarly, the rural-urban divide has also declined considerably, as the difference between rural and urban monthly per capita consumption expenditure (MPCE) declined from 83.9 % in 2011-12 to 71.2 % in 2022-23.

***

Industrial Sector in India

 Robust industrial growth of 9.5 percent was a key highlight of the Economic Survey 2023-24, presented by the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, in Parliament today.

According to the Economic Survey, manufacturing remained at the forefront of the Indian industrial sector achieving an average annual growth rate of 5.2 per cent in the last decade. The sector had a gross value added at 14.3 per cent in FY23 and an output share of 35.2 per cent during the same period, indicating that the sector has significant backward and forward linkages. The HSBC India Purchasing Managers’ Index (PMI) for manufacturing also consistently remained well above the threshold value of 50 in all months of FY24, which is proof of a sustained expansion and stability in India’s manufacturing sector.

The Survey notes that about 47.5 per cent of the total value of output in the country is used as inputs in productive activities (inter-industry consumption). Manufacturing activities account for about 50 per cent of the inter-industry consumption and, at the same time, supply almost 50 per cent of inputs used in all productive activities (agriculture, industry and services).

Annotation 2024-07-21 140347.png

Physical infrastructure, logistics and compliance bottlenecks slowed capacity creation and expansion in the past. The Survey optimistically notes that majority of these restrictions have been now been lifted. The Survey states that physical infrastructure and connectivity is improving at a rapid pace. It further comments that the Goods and Services Tax has created a single market for several commodities, enabling manufacturing at scale. The Survey underlines the importance of deregulation along with the role of private sector in long-term investment. Boosting competitiveness and expanding the Indian manufacturing sector remains key to generation of semi-skilled employment thus bringing development closer to the people.

*****

Agriculture Sector in India

 Economic Survey 2023-24 presented in the Parliament today by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman. Economic Survey says that smallholder farmers need to move to high-value agriculture. The Survey says once the incomes of smallholders increases, they will demand manufactured goods, spurring a  manufacturing revolution.

Economic Survey says that the Indian agriculture sector provides livelihood support to about 42.3 per cent of the population and has a share of 18.2 per cent in the country’s GDP  at current prices. The sector has been buoyant, which is evident from the fact that it has registered an average annual growth rate of 4.18 per cent at constant prices over the last five years and as as per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 percent.

Economic Survey states that the Investment in agriculture research and support of enabling policies have contributed substantially to food security. It is estimated that for every rupee invested in agricultural research (including education), there is a payoff of ₹13.85. In 2022-23, ₹19.65 Thousand Crore was spent on agriculture research.

Economic Survey calls for enhancing private sector investment in agriculture saying it is vital to provide impetus to the agriculture sector. Investment in technology, production methods, marketing infrastructure, and reduction in post-harvest losses need to be scaled up. A greater focus on post-harvest infrastructure and the development of the food processing sector can reduce wastage/loss and increase the length of storage, ensuring better prices for the farmers.

Economic Survey says that in 2022-23, foodgrain production hit an all-time high of 329.7 million tonnes, and oilseeds production reached 41.4 million tonnes. In 2023-24, food grain production is slightly lower at 328.8 million tonnes, primarily because of poor and delayed monsoons. The domestic availability of edible oil has risen from 86.30 lakh tonnes in 2015-16 to 121.33 lakh tonnes in 2023-24. The total area coverage of all oilseeds has increased from 25.60 million hectares in 2014-15 to 30.08 million hectares in 2023-24(17.5 percent growth). This has reduced the percentage share of imported edible oil, from 63.2 per cent in 2015-16 to 57.3 percent in 2022-23, despite rising domestic demand and consumption patterns.

Economic Survey suggests that to promote efficiency in agriculture marketing, and improve price discovery, the government implemented the e-NAM Scheme and as of 14th March 2024, more than 1.77 Crore farmers and 2.56 Lakh traders have been registered on the e-NAM portal. The Government of India launched the scheme to form and promote 10,000 FPOs in 2020 with a budget outlay of ₹6.86 thousand crore till 2027-28. As of 29 February 2024, 8,195 FPOs have registered under the new FPO scheme, and equity grants of ₹157.4 crore were released to 3,325 FPOs. Credit guarantee cover worth ₹278.2 crore was issued to 1,185 FPOs.

Economic Survey states that the Agricultural price support assures farmers of remunerative returns, increasing income and allows the Government to ensure a stable supply of staples at reasonable prices. Accordingly, the Government has been increasing the MSP for all Kharif, Rabi and other commercial crops with a margin of at least 50 per cent over the all-India weighted average cost of production since the agricultural year 2018-19.

Economic Survey shows that to provide social security to the most vulnerable farmer families, the Government implements Pradhan Mantri Kisan Maandhan Yojna (PMKMY). The scheme offers a monthly pension of ₹3,000 to the enrolled farmers on the attainment of 60 years of age, based on a nominal premium between ₹55 to ₹200 per month paid by the applicant (in the age group 18 to 40 years) subject to exclusion criteria. As of 07 July 2024, 23.41 lakh farmers have enrolled under the scheme.

Economic Survey, on focusing to reduce the use of chemical fertilizer, states that the PM Programme for Restoration, Awareness Generation, Nourishment, and  amelioration of Mother Earth (PM-PRANAM ) initiative incentivises states to reduce chemical fertiliser use. It promotes sustainable methods such as the use of alternative fertilisers, viz. Nano Urea, Nano DAP, and organic fertiliser.

Focusing on the security of farmers’ crop, Economic Survey highlighted the Pradhan Mantri Fasal Bima Yojana (PMFBY) which offer a safety net against crop losses due to natural calamities, pests, or diseases, ensuring financial stability for farmers. The scheme safeguards farmers’ livelihoods and encourage them to adopt modern farming practices and technologies. PMFBY is the largest crop insurance scheme in the world in terms of farmer enrolment and is the third largest scheme in terms of insurance premiums. The scheme ensure comprehensive risk cover for crops to farmers against all non-preventable natural risks from pre-sowing to post-harvest. The overall insured area in 2023-24 reached 610 lakh ha compared to 500.2 lakh ha in 2022-23. A total of 5549.40 Lakh farmer applications were insured under the scheme since 2016-17, and ₹150589.10 Crore has been paid as claims.

***

Gross Capital Formation

 Economic Survey 2023-24 was presented in the Parliament today by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman. The Economic Survey states that the Gross Capital Formation (GCF) of the agriculture sector and the share of GCF in the agriculture and allied sectors as a percentage of Gross Value Added (GVA) has been growing steadily, mainly due to increased public investment. The GCF of the agriculture sector grew at the rate of 19.04 per cent in 2022-23, and the GCF as a percentage of GVA rose from 17.7 per cent in 2021-22 to 19.9 per cent in 2022-23, suggesting an increase in investment in agriculture. The average annual growth in GCF from 2016-17 to 2022-23 was 9.70 percent. The Survey states that despite the increasing trend in GCF, there is a need to further boost agriculture investment, especially in the context of doubling farmers’ income. The DFI 2016 report indicated that to double farmers’ income over the period of 2016-17 to 2022-23, income would need to grow at an annual rate of 10.4 per cent in the farm sector, which in turn would require an annual growth rate in agriculture investment of 12.5 percent.

The government’s priority has been to provide timely, cost-effective, and adequate credit that reduces the dependence on non-institutional credit and increases investment. The measures have reduced the share of non-institutional credit from 90 per cent in 1950 to 23.40 per cent in 2021-22. As of 31 January 2024, the total credit disbursed to agriculture amounted to ₹ 22.84 lakh Crore, with ₹13.67 lakh Crore allocated to crop loans (short term) and ₹ 9.17 lakh Crore to term loans.

Kisan Credit Card(KCC):

The Economic Survey states that the Kisan Credit Card (KCC) has streamlined agricultural credit accessibility and as of January 31, 2024, banks issued 7.5 crores KCC with a limit of ₹9.4 lakh crores. As a further measure, the KCC was extended to meet the working capital needs of fisheries and animal husbandry activities in 2018-19, along with the enhancement of the limit for collateral-free loans to ₹1.6 lakh. In the case of a Tri-Partite Agreement (TPA) among borrowers, milk unions, & banks, the collateral-free loan can go up to ₹3 lakh As of March 31, 2024, 3.49 lakh KCC and 34.5 lakh KCC were issued to fisheries and animal husbandry activities, respectively. Economic Survey states that  Joint Liability Groups (JLGs) have emerged as an essential source of credit for tenant farmers. JLG accounts have grown at a compound annual growth rate (CAGR) of 43.76 per cent over the past five years, emerging as a vital source in meeting the credit needs of tenant farmers and  marginalised segments.

Agriculture Infrastructure:

Economic Survey shows that as of 30th April 2024, 48357 projects were sanctioned for storage infrastructure with ₹4570 Crore released as subsidy, and 20878 other projects are also under progress with ₹2084 Crore released as subsidy. To give further fillip to farm gate infrastructure and also involve the private sector more actively, the Agriculture Infrastructure Fund (AIF) was launched with a financing facility of ₹1 lakh Crore to be disbursed between FY 2020-21 to FY 2025-26 with support extending till FY 2032-33.

The Economic Survey states that the Agriculture Infrastructure Fund(AIF)  provides medium-term debt financing for post-harvest management and community farming projects, offering interest subvention and credit guarantee support. As of 5th July 2024, AIF mobilised an investment of ₹73194 Crore, supporting 17196 custom hiring centres, 14868 primary processing units, 13165 warehouses, 2942 sorting and grading units,1792 cold storage projects, and 18981 other projects. In addition, the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) introduced credit-linked financial assistance through grants-in-aid to build efficient supply chain management from farm to retail to reduce the wastage of perishable produce and extend food shelf life. Under PMKSY 1044 projects were completed till end March 2024. A total of 1685 projects with project cost ₹ 32.78 thousand crore and approved subsidy of ₹ 9.3 thousand crore have been approved till end March 2024.

***

Trade Policy of India

 The Economic Survey 2023-24, that was tabled in Parliament today, lays special emphasis on controlling Prices and Inflation as ‘Low and stable inflation is key to sustaining economic growth.’ It states that Governments and Central Banks face the challenge of keeping inflation at a moderate level while ensuring financial stability. Achieving this delicate balance requires careful monitoring of economic indicators and taking appropriate and timely corrective actions. With the commitment of the Reserve Bank of India (RBI) to the goal of price stability and policy actions by the Central Government, India has successfully managed to keep retail inflation at 5.4 per cent in FY24, the lowest level in 4 years, since the Covid-19 pandemic period.

The Economic Survey highlights the fact that India’s retail inflation is lower than the emerging markets & developing economies (EMDES) and world average in 2022 and 2023 as per IMF data. Survey states that factors such as established monetary policies, economic stability, well-developed and efficient markets that balance supply and demand conditions, and stable currencies contribute to the effective management of inflation. Historically, inflation in advanced economies has generally been lower than in EMDEs.

Inflation Management

With the goal of maintaining price stability, many countries have established their own inflation targets based on various factors that serve their economic objectives best. Lauding India’s Inflation Management, the Economic Survey states that interestingly, India is performing better than various developed and emerging economies in relation to its inflation target. In 2023, India’s inflation rate was within its target range of 2 to 6 per cent. Compared to advanced economies like the USA, Germany, and France, India had one of the lowest deviations from its inflation target in the triennial average inflation from 2021-2023. Despite the challenges posed by global demand- supply imbalances due to ongoing geopolitical tensions, India’s inflation rate was 1.4 percentage points below the global average in 2023.

Since 2020, countries have been facing challenges in controlling inflation. India has been able to bring about a declining trend in Headline and Core Inflation through its prudent administrative measures and monetary policy. As per the Economic Survey, since May 2022, monetary policy broadly focused on absorbing excess liquidity in the system by increasing the policy repo rate by 250 basis points from 4 per cent in May 2022 to 6.5 per cent in February, 2023. Thereafter, the policy rate was kept unchanged by focusing on the gradual withdrawal of accommodation, aiming to align inflation with the target, while simultaneously fostering growth. Consequently, the persistent and sticky core inflation observed in FY23 declined to 3.1 per cent in June, 2024

The Survey further asserts that administrative measures such as price cuts for LPG, petrol, and diesel led to lower LPG and petroleum product inflation. LPG inflation rate has been in the deflationary zone since September 2023 while retail inflation in petrol and diesel moved to the deflationary zone in March 2024. Additionally, global commodity prices declined in 2023, reducing price pressure in energy, metals, minerals, and agricultural commodities through the imported inflation channel. Low fuel and core inflation ensured a downward trajectory for headline inflation, despite volatility in food prices in FY24. As per the recent data released by MoSPI, the retail inflation rate was 5.1 per cent in June 2024.

Core inflation, measured by excluding food and energy items from CPI headline inflation has witnessed a four year low in FY24. From the pandemic-driven highs, inflationary pressures in India eased in FY22, aided by softening food inflation. Inflationary pressures firmed up in FY23 yet again driven by the Russia-Ukraine war disrupting the recouping supply chains leading to a rise in food and fuel prices. In FY24, the price situation improved. CPI inflation moderated, driven by a decline in core inflation in both goods and services. Core services inflation eased to a nine-year low in FY24; at the same time, core goods inflation also declined to a four-year low.

Trends in core inflation are important in determining the contours of monetary policy. Assessing the emerging patterns of price pressures, the RBI increased the repo rate gradually by 250 basis points since May 2022 to curtail inflationary pressures, leading to reduction of around 4 percentage points in core inflation between April 2022 and June 2024. This was aided by moderation in housing rental inflation, with a significant increase in the stock of new houses in 2023.

Consumer durables inflation increased progressively between FY20 and FY23 by more than 5 percentage points, mainly due to increase in gold prices in FY21 and clothing in FY22 and FY23. With the improvement in the supply of key raw materials, the inflation rate for consumer durables declined in FY24. However, record-high gold prices, driven by anticipated Fed rate cuts and escalating geopolitical uncertainty, have exerted upward pressure on overall durables inflation. Consumer non-durables (CND) inflation plunged in FY20, it started to inch up in FY21, reached an all-time in FY22, and declined sharply in FY23 and FY24.

Food Inflation has been a global phenomenon in the last two years. Research indicates the rising vulnerability of food prices to climate change. In FY23 and FY24, the agriculture sector was affected by extreme weather events, lower reservoir levels, and damaged crops that adversely affected farm output and food prices. So, food inflation based on the Consumer Food Price Index (CFPI) increased from 3.8 per cent in FY22 to 6.6 per cent in FY23 and further to 7.5 per cent in FY24. However, the government took prompt actions, including open market sales, retailing in specified outlets, and timely imports, to ensure an adequate supply of essential food items. Additionally, to ensure food security for the poor, the Pradhan Mantri Garib Kalyan Anna Yojana, which provides free food grains to more than 81 crore beneficiaries, was extended for a period of five years starting from January 2024.

Global Food Prices and Domestic Inflation

Global food prices also have an impact on domestic inflation. In India, the edible oil market is heavily depends on imports, with more than 50 per cent of the total edible oil requirement being imported, making it sensitive to global prices. The Government closely monitors global market trends to ensure the availability of edible oils for consumers at an affordable price. Efforts are also made to balance imports with domestic production to mitigate the risks associated with global price volatility. In this context, the National Mission on Edible Oils Oil Palm aims to increase domestic crude palm oil production to reduce the import burden. In the case of sugar, the Government announced restrictions on export in June 2022 to ensure sufficient local supplies and thereby manage sugar inflation. These export restrictions have indeed played a role in stabilising domestic sugar prices. As a result, even though the global sugar price index inflated and has been showing volatility since February 2023, domestic sugar prices have remained much less volatile.

Elaborating on the Interstate variations in Retail Inflation, the Economic Survey asserts that inflation rate was less than 6 per cent in 29 out of the 36 States and Union Territories. These Interstate variations in inflation are more pronounced in rural areas since rural consumption basket has a much higher weightage of food items (47.3%) than the urban (29.6%). Hence, in the last two years, States that witnessed elevated food prices also experienced higher rural inflation.

Future Inflation Projections

RBI and IMF have projected India’s consumer price inflation will progressively align towards the inflation target in FY26. Assuming a normal monsoon and no further external or policy shocks, the RBI expects headline inflation to be 4.5 per cent in FY25 and 4.1 per cent in FY26. IMF has projected an inflation rate of 4.6 per cent in 2024 and 4.2 per cent in 2025 for India. The World Bank expects that the global supply of commodities will increase, and so will their demand due to improved industrial activity and trade growth. It projects a 3 per cent decline in the commodity price index in 2024 and a 4 per cent decrease in 2025, mainly driven by lower energy, food and fertiliser prices. The energy price index is expected to reduce due to significant declines in coal and natural gas prices this year. Fertiliser prices are likely to weaken but remain above 2015-2019 levels due to strong demand and export restrictions. Base metal prices are projected to rise, reflecting increased global industrial activity and clean energy production. In general, the current downward movement in the prices of commodities imported by India is a positive for the domestic inflation outlook.

The short-term inflation outlook for India is benign. However, from the angle of long-term price stability, the Economic Survey suggests exploring the following options as the way forward:

1. Reducing import dependence for edible oils by increasing domestic production of major oilseeds, Exploring potential of non-conventional oils such as rice bran oil and corn oil and expanding scope of National Mission on Edible Oils

2. Expand the area under pulses, particularly lentils, tur, and urad, in more districts and rice- fallow areas. Promoting the summer cultivation of urad and moong in areas with assured irrigation facilities.

3. Further improving and developing modern storage and processing facilities for vegetables, especially tomatoes and onions.

4. Improving swiftness and effectiveness of administrative action by the Government to deal with price flare-ups in specific items by collating high-frequency price monitoring data, from the farm gate to the final consumer, in a quantifiable manner. Expediting producer price index for goods and services for better grasp on episodes of cost-push inflation and

5. Revising the consumer price index with fresh weights and item baskets using Household Consumer Expenditure Survey, 2022-23.

 

*****

Foreign Trade in India

 India’s external sector remained strong amidst ongoing geopolitical headwinds with services exports continuing to perform well. The overall trade deficit reduced from USD 121.6 billion in FY23 to USD 78.1 billion in FY24. This is stated in the Economic Survey 2023-24 tabled by the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman in the Parliament today.

SERVICES TRADE

The Economic Survey highlights that the share of India’s services exports in world services exports has risen remarkably from 0.5 per cent in 1993 to 4.3 per cent in 2022. India is now the seventh-largest services exporting country globally rising phenomenally from its 24th position in 2001.

Amongst services exports, software/IT services and business services exports have increased. This was supported by India emerging as a hub for Global Capability Centres (GCCs). India ranks 2nd in the world in telecommunication, computer, and information services exports, 6th in personal, cultural and recreational services exports and 8th in other business services exports. 

The growth in Global Capability Centres (GCCs) is reflected in the services BoP, with ‘Other Business Services’ being the second-largest contributor in services exports in FY24 with a share of 26%. In 2012, about 760 GCCs were operating out of India and as of March 2023, India houses over 1,600 GCCs.

MERCHANDISE TRADE

India performed well in merchandise trade despite lowering in global demand with exports crossing USD 776 billion and imports reaching USD 898 billion in FY23. With this, merchandise trade deficit narrowed to USD 238.3 billion in FY24 compared to USD 264.9 billion in the previous year.

There was a slowdown in India’s major exporting partners (especially the EU, whose real GDP grew barely by 0.6 per cent in 2023, compared to 3.6 per cent growth in 2024), along with the lagged impact of monetary tightening carried out by many countries to control rising inflation.

The Survey notes that adverse trade environment in 2023 is expected to ease somewhat this year and next, boosting goods trade in 2024 and 2025. World merchandise trade volume is expected to grow at 2.6 per cent and 3.3 per cent in 2024 and 2025, respectively, as demand for traded goods rebounds.

India’s exports of engineering goods, electronic goods and drugs & pharmaceuticals increased in FY24 on a YoY basis. India’s share in world electronics exports also improved. India maintained a strong foothold in the drugs and pharmaceuticals sector.

Despite high domestic demand due to the relatively strong growth of India’s economy, merchandise imports contracted by 5.7 per cent in FY24, from USD 716 billion in FY23 to USD 675.4 billion in FY24. Imports of capital goods saw an increase, which is welcome as it indicates a heightened demand for machinery, equipment, and other durable goods used in production processes, suggesting potential investments in industrial infrastructure or technological upgrades. A marginal uptick in the share of consumer goods in merchandise imports reflects a stable but limited increase in the importation of finished products for direct consumption.

A targeted focus and a series of measures undertaken by the Government has shown robust growth in product-specific exports in sectors such as – Defence, Toys, Footwear and Smartphones. The share of electronics goods in merchandise exports of India rose from 2.7 per cent in FY19 to 6.7 per cent in FY24, taking India from 28th position in 2018 to 24th in 2022 in global electronics exports.

 

MEASURES TO EXPAND EXPORTS

The Government has undertaken various measures to promote exports and reduce logistics costs involved in international trade which include setting export targets and their monitoring, provision of export credit insurance services and encouraging banks to provide affordable and adequate export credit to micro, small and medium enterprises (MSME) exporters, enabling them to explore new markets and diversify their existing products competitively.

To boost efficiency and lower logistics costs, the Government launched the PM GatiShakti National Master Plan and the National Logistics Policy (NLP) in October 2021 and September 2022, respectively. Digital reforms, such as the Unified Logistics Interface Platform (ULIP) and the Logistics Data Bank, are additional measures taken towards improving logistics.

Initiatives, such as railway track electrification, reduced release times by the Land Ports Authority of India (LPAI), and the launch of NLP Marine for port-related logistics were also undertaken. Since the launch of the NLP, over 614 industry players have registered on ULIP, 106 private companies have signed Non-Disclosure Agreements (NDAs), 142 companies have submitted 382 use cases to be hosted on ULIP and 57 applications have been made live as of September 2023.

The Survey notes that India stands for an open, inclusive, predictable, non-discriminatory, and mutually beneficial international trade as it can provide an impetus to economic growth. India advocates for a rule-based international trading system with these attributes with WTO at its core. In this spirit, India considers Free Trade Agreements (FTAs) an instrument of trade liberalisation and a complement to the multilateral trading system under WTO. Accordingly, the country is engaged with all its trading partners/blocs to expand its export markets while ensuring better terms for essential imports to meet domestic demand in a cost competitive manner.

The Economic Survey highlighted that India is moving up the global value chains (GVCs), with the share of GVC-related trade in gross trade rising to 40.3 per cent in 2022 from 35.1 per cent in 2019. The improvement in GVC participation is also reflected in increased pure backward GVC participation.

The Survey added that India’s GVC participation has begun to rev up again on the back of incentives provided through schemes such as the PLI and Districts as Exports Hub (DEH) initiative, after the lull seen in the years succeeding the global financial crisis. Survey says that the evidence of India’s enhanced global supply chain participation is reflected in increased investment by foreign firms in electronics, apparel and toys, automobiles and components, capital goods and semiconductor manufacturing in India.

CURRENT ACCOUNT BALANCE

The Economic Survey highlighted that India’s Current Account Deficit (CAD) narrowed to USD 23.2 billion (0.7 per cent of GDP) in FY24 from USD 67 billion (2 per cent of GDP) during the previous year due to a decline in merchandise trade deficit, rising net services exports and increasing remittances.

The Net services receipts increased from USD 143.3 billion during FY23 to USD 162.8 billion in FY24, primarily on account of rising exports of software, travel and business services. The remittances by Indians employed overseas, was USD 106.6 billion in FY24, against USD 101.8 billion during the previous year.

Remittances to India are forecasted to grow at 3.7 per cent to USD 124 billion in 2024 and at 4 per cent to reach USD 129 billion in 2025, emphasized the Survey.

CAPITAL ACCOUNT BALANCE

Emphasizing about the stable capital inflows which continue to finance the CAD, the Survey mentioned that during FY24, net capital flows stood at USD 86.3 billion against USD 58.9 billion during the previous year, primarily driven by FPI flows and net inflows of banking capital.

The Survey emphasized that India witnessed positive net foreign portfolio investment (FPI) inflows in FY24 of USD 44.1 billion, supported by strong economic growth, a stable business environment, and increased investor confidence.

Highlighting that India received the highest equity inflows among emerging market peers during FY24, the Survey listed financial services, automobile and auto components, healthcare, and capital goods were the significant sectors attracting equity inflows during FY24.

The Survey noted that the Net FDI inflows to India declined from USD 42.0 billion during FY23 to USD 26.5 billion in FY24 as an impact of decline in global FDI flows. It further added that the gross FDI inflows moderated only by 0.6 per cent from USD 71.4 billion in FY23 to just under USD 71 billion in FY24.

Highlighting that India has a well-established infrastructure to attract FDI in select sectors, i.e., Greenfield projects such as renewables, digital services such as telecommunications, software and hardware, and consultancy services, the Economic Survey suggested that where investment intentions are high, the sectors must be made more accessible for investments. It further added that the focus must remain on improving the ease of doing business across sectors and extend beyond sectors attractive to FDI alone by working out the details across all levels of government – national, state and local – and across regulators.

The Survey listed that educated labour and a skilled workforce coupled with a vibrant R&D culture are important magnets to enhance sustained investor interest, apart from political stability, policy predictability and stability, reasonable duties and taxes, dispute resolution mechanisms and ease of repatriation.

The Survey highlighted that during FY24, India’s Foreign Exchange Reserve (FER) increased by USD 68 billion, the highest increase among major foreign exchange reserves-holding countries.

 

The Survey notes that the Rupee emerged as the least volatile currency among its emerging market peers and a few advanced economies in FY24. It further stated that Rising FPI inflows kept the Indian Rupee in a manageable range of ₹82 to ₹83.5/USD in FY24.

The Economic Survey says that Indian residents’ overseas financial assets, by end of March 2024, was at USD 1,028.3 billion were higher by USD 109.7 billion or 11.9 per cent compared to the level as of March 2023. The factors attributed were mainly due to a rise in reserve assets, currency and deposits, overseas direct investment, trade credit and advances and loans.

 

EXTERNAL DEBT

The External debt to GDP ratio declined to 18.7 per cent at the end of March 2024 from 19.0 per cent at the end of March 2023. Survey added that comparing various debt vulnerability indicators of India with peer countries for 2022 indicates that India is in a better position with relatively low levels of total debt as a percentage of Gross National Income (GNI) and short-term external debt as a percentage of total external debt.

The Economy survey noted that India’s trade deficit is expected to decline further as the PLI scheme is expanded and India creates a globally competitive manufacturing base in several product categories. It added that the recently signed FTAs are expected to increase the global market share of the country’s exports. The Survey mentioned that various international agencies and RBI expect the CAD to GDP to moderate to below one per cent for FY24, driven by growing merchandise and services exports and resilient remittances.

The Survey listed the fall in demand from major trading partners, Rise in trade cost, Commodity price volatility, Trade policy changes as some of the major challenges to India’s balance of trade. The Survey suggested that the changing composition of India’s export basket, enhancement in trade-related infrastructure, enhanced quality consciousness and product safety considerations in the private sector and stable policy environment are expected to play a significant role in driving India’s rise as a global supplier of goods and services.

***

Banking Sector Growth

 Indian economy’s financial and banking sectors have shown strong performance despite continuous geopolitical challenges, said the Economic Survey 2023-24 tabled by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament today. The survey notes that the Central Bank maintained a steady policy rate throughout the year, with the overall inflation rate under control. The effects of the monetary tightening following the Russia-Ukraine conflict are evident in the lending and deposit interest rates increase among banks. Bank loans saw significant and widespread growth across various sectors, with personal loans and services leading the way.

Monetary Policy

The Monetary Policy Committee (MPC) maintained the status quo on the policy repo rate at 6.5 per cent in FY24. During the current tightening cycle, i.e., from May 2022 to May 2024, the external benchmark-based lending rate and the one-year median marginal-cost-of-funds based lending rate increased by 250 bps and 175 bps, respectively.

Important factors impacting the evolution of monetary and credit conditions during FY24 were the withdrawal of ₹2,000 banknotes (May 2023), the merger of HDFC, a non-bank, with HDFC Bank (July 2023), and the temporary imposition of the incremental CRR (I-CRR) (August 2023).

The growth in Broad Money (M3), excluding the impact of the merger of HDFC with HDFC Bank (with effect from 1 July 2023), was 11.2 per cent (YoY) as of 22 March 2024, compared to 9 per cent a year ago.

During FY24, 17 fortnightly Variable Rate Reverse Repo (VRRR) auctions and seven Variable Rate Repo (VRR) auctions were undertaken as the primary operation. In addition, 49 fine-tuning operations (25 VRRR and 24 VRR) were conducted intermittently, modulating liquidity conditions in alignment with the monetary policy stance, the survey notes.

Bank Credit

Credit growth remains robust, mainly driven by lending to services and personal loans.

Lending by non-banking financial companies (NBFCs) accelerated, led by personal loans and loans to the industry, and their asset quality improved. Credit disbursal by SCBs stood at ₹164.3 lakh crore, growing by 20.2 per cent at the end of March 2024, compared to 15 per cent growth at the end of March 2023.

Agricultural credit increased nearly 1.5 times from ₹13.3 lakh crore in FY21 to ₹20.7 lakh crore in FY24. The Kisan Credit Card (KCC) scheme played a pivotal role in providing timely and hassle-free credit to farmers, with over 7.4 crore operative KCC accounts at the end of 2023.

Industrial credit growth picked up in H2 of FY24, registering 8.5 per cent growth in March 2024, compared to 5.2 per cent a year ago, driven by an increase in bank credit to small and large industries.

Improving credit flow to the MSME sector at low cost has been a policy priority of the Government and RBI. Bank credit disbursal to the services sector remained resilient despite a slowdown in credit growth to NBFCs Credit disbursal for housing loans increased from ₹19.9 lakh crore in March 2023 to ₹27.2 lakh crore in March 2024.

Banking Sector

There has been a significant enhancement in the asset quality of banks, led by improved borrower selection, more effective debt recovery and heightened debt awareness among large borrowers. In addition to regulatory capital and liquidity requirements, qualitative metrics such as enhanced disclosures, robust code of conduct, and transparent governance structures also improved banking performance.

The gross non-performing assets (GNPA) ratio of SCBs continued its downward trend, reaching a 12-year low of 2.8 per cent at the end of March 2024 from its peak of 11.2 per cent in FY18.

The macro-and micro-prudential measures by RBI and the Government have enhanced risk absorption capacity in recent years, improving the banking system’s stability. For the top 10 Indian banks in asset size, loans constitute more than 50 per cent of their total assets, making banks immune to the rising interest rate cycle.

In the eight years since 2016, 31,394 corporate debtors involving a value of ₹13.9 lakh crore have been disposed of (including pre-admission case disposals) as of March 2024. ₹10.2 lakh crore of underlying defaults were addressed at the pre-admission stage.

The Government has taken several measures to improve the insolvency ecosystem. It has strengthened the NCLT regarding infrastructure, increasing its strength by filling vacancies and proposing an integrated IT platform. The regulations have been amended to keep in line with the needs of the markets and the advances in judicial pronouncements, the survey notes.

Strong Primary Markets

The Survey highlights the remarkable expansion of Indian capital markets. Capital markets have shown impressive results, with India’s stock market capitalisation to GDP ratio ranking fifth globally.

Primary markets remained robust during FY24, facilitating capital formation of ₹10.9 lakh crore (which approximates 29 per cent of the gross fixed capital formation of private and public corporates during FY23), compared to ₹9.3 lakh crore in FY23. Fund mobilisation through all three modes, viz., equity, debt, and hybrid, increased by 24.9 per cent, 12.1 per cent and 513.6 per cent, respectively, in FY24 compared to the previous year.

The number of initial public offers (IPOs) increased by 66 per cent in FY24 from 164 in FY23 to 272 in FY24, while the amount raised grew by 24 per cent (from ₹54,773 crore in FY23 to ₹67,995 crore in FY24). The corporate debt market in India is going from strength to strength. During FY24, the value of corporate bond issuances increased to ₹8.6 lakh crore from ₹7.6 lakh crore during the previous financial year. The number of corporate bonds public issues in FY24 was the highest for any financial year so far, with the amount raised (₹19,167 crore) at a four-year high. Increasing investor demand and the rise in the cost of borrowing from banks have made these markets more attractive for corporates for funding requirements.

Robust Secondary Markets

Indian stock market was among the best-performing markets, with India’s Nifty 50 index ascending by 26.8 per cent during FY24, as against (-)8.2 per cent during FY23. The Survey says that the exemplary performance of the Indian stock market compared to the world can be primarily attributed to India’s resilience to global geo-political and economic shocks, its solid and stable domestic macroeconomic outlook, and the strength of the domestic investor base.

The Indian capital markets have seen a surge in retail activity in the last few years. The registered investor base at NSE has nearly tripled from March 2020 to March 2024 to 9.2 crore as of 31 March 2024, potentially translating into 20 per cent of the Indian households now channelling their household savings into financial markets. The number of demat accounts rose from 11.45 crore in FY23 to 15.14 crore in FY24.

FY24 has been a spectacular year for Mutual Funds as their Assets under Management (AuM) increased by ₹14 lakh crore (YoY growth of 35 per cent) to ₹53.4 lakh crore at the end of FY24, boosted by mark-to-market (MTM) gains and expansion of the industry.

Economic Survey notes that the significant increase in retail investors in the stock market calls for careful consideration as there is the possibility of overconfidence leading to speculation. It says that the firms operating in banking and capital markets must keep the interests of the consumers in mind through fair selling, disclosure, transparency, reliability, and responsiveness.

Progress of financial inclusion

The Survey highlights that the Government has prioritised delivering financial services to the last mile. The number of adults with an account in a formal financial institution increased from 35 per cent in 2011 to 77 per cent in 2021. Not only there is a decline in the access gap between the rich and the poor but the gender divide in terms of financial inclusion has also narrowed.

Survey notes a shift in focus of the financial inclusion strategy in the country, from ‘every household’ to ‘every adult,’ with added emphasis on direct benefit transfer (DBT) flows, promoting digital payments using RuPay cards, UPI123 etc.

Highlighting the progress of financial inclusion so far in the country, the survey says that India is among the fastest-growing fintech markets in the World, hailing as the third-largest growing fintech economy. A key enabler of this financial inclusion drive has been the digitalisation of the financial system, which the survey terms “transformative”. ‘Digital financial inclusion (DFI)’ is the next big target of the government. The survey says that the COVID-19 pandemic gave further momentum to Digital financial inclusion (DFI) when the most vulnerable and excluded citizens were severely affected.  Some flagship schemes such as the Digital India Mission, Make-in-India, Aadhaar, e-KYC, Aadhaar-enabled Payment System, UPI, Bharat QR, DigiLocker, e-sign, Account Aggregator, Open Network for Digital Commerce, etc came to the rescue.

The success of UPI has been enhanced by the expansion of smartphone usage in India, with more than 116.5 crore smartphone subscribers as of 31 March 2024. The value of transactions conducted on the UPI platform has increased multifold from ₹0.07 lakh crore in FY17 to ₹200 lakh crore in FY24.

Microfinance has been playing an essential role in meeting low-income households’ credit needs by providing affordable doorstep services. Globally, the Indian microfinance sector is the second largest after China in terms of number of borrowing customers in India, which are about three times that of the next biggest market, i.e., Indonesia.

Insurance sector

The survey says that the insurance sector has seen a remarkable growth. India is poised to emerge as one of the fastest-growing insurance markets in the coming decade. Economic growth, an expanding middle class, innovation, and regulatory support have driven insurance market growth in India. Non-life premium growth moderated slightly from 9 per cent in FY22 to an estimated 7.7 per cent in as the market stabilised after the pandemic.  Recently, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) achieved a milestone of generating 34.2 crore Ayushman cards across India, with 49.3 per cent of them held by females.

Pension sector

Talking about the developments in the pension sector, the survey states that India’s pension sector has expanded since the introduction of the National Pension Scheme (NPS) and, more recently, the Atal Pension Yojana (APY). The total number of subscribers stood at 735.6 lakh as of March 2024, registering a YoY growth of 18 per cent from 623.6 lakh as of March 2023. The total number of APY subscribers (including its earlier version, NPS Lite) increased from 501.2 lakh as of March 2023 to 588.4 lakh as of March 2024. APY subscribers account for around 80 per cent of the pension subscriber base. APY subscribers have witnessed an improvement in gender mix, with female subscriber share rising from 37.2 per cent in FY17 to 48.5 per cent in FY23.

The survey also mentions the mechanisms to ensure regulatory coordination and overall financial stability, which should withstand unforeseen shocks so that there is a high degree of confidence. It recognizes the key role of Financial Sector Development Council (FSDC) to deal with a wide range of issues relating to financial stability and financial sector development. 

*****

Jobs Creation

 With the global labour market amidst a ‘disruption,’ and constantly being reshaped by the fourth industrial revolution, the Economic Survey 2023-24 tabled in Parliament by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, recognizes that India would also not remain immune to the transformation caused by it.

REQUIREMENT OF JOB CREATION UNTIL 2036

The Economic Survey 2023-24 notes that Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce.

Annual requirement for non-farm job creation during 2024-2036

The Survey mentions that there is a scope to supplement the existing schemes of Production Linked Incentive (PLI) (60 lakh employment generation over 5 years), MITRA Textile scheme (20 lakh employment generation), MUDRA, etc., while boosting their implementation.

AI: THE BIGGEST DISRUPTOR

While attributing the biggest disruption in the future of work to the accelerated growth in AI, the Economic Survey 2023-24 says that India, with its vast demographic dividend and a very young population, is uniquely situated as AI poses both risk and opportunity. A particular risk is the BPO sector, where GenAI is revolutionising the performance of routine cognitive tasks through chatbots, and employment in the sector is estimated to decline considerably in the next ten years.

In the following decade, however, gradual diffusion of AI is expected to augment productivity.

But given the affinity of India’s population to work with technology, as seen with the digital public infrastructure, proactive interventions by the Government and industry can position India as a key player in the AI age, the Economic Survey notes.

MAKING THE MOST OF AI IN INDIA

Highlighting the need for research and development in this sector, the Economic Survey 2023-24 mentions a policy brief which suggests a need for an Inter-Agency Coordination Authority for AI which would act as a central institution guiding the research, decision-making, policy planning on AI and job creation.

The Government has launched several initiatives to ensure an AI enabled ecosystem and to connect AI to the youth of the country. Some of these include ‘Future Skills Prime’, ‘YUVAi: Youth for Unnati and Vikas with AI’ a national programme for school students and ‘Responsible

AI for Youth 2022’. A budget of ₹10,300 crore has been provided in 2024 for the India AI Mission, a significant move to strengthen the AI ecosystem.

A SHIFT TOWARDS GIG ECONOMY

According to NITI Aayog’s indicative estimates based on national labour force survey data, in 2020–21, 77 lakh (7.7 million) workers were engaged in the gig economy and as per the Economic Survey 2023-24, the gig workforce is expected to expand to 2.35 crore (23.5 million) and form 6.7 per cent per cent of the non-agricultural workforce or 4.1 per cent of the total livelihood in India by 2029–30. 

The Survey mentions that the significant contribution in the Indian context and globally has been the creation of effective social security initiatives for gig and platform workers. The Code on Social Security (2020) marks a significant advancement by expanding the scope of social security benefits to encompass gig and platform workers.

CLIMATE CHANGE AND GREEN ENERGY TRANSITION

Recognizing the climate change as a hard reality of the present times and projections pointing towards an increase in the frequency and intensity of extreme weather events, the Survey mentions its concomitant outcome as the possible loss of jobs and productivity.

Another aspect of climate change is the efforts to mitigate its impact by adopting green technologies and transitioning to greener energy alternatives. This trend is leading to businesses witnessing a strong job-creation effect driven by investments that facilitate the green transition of businesses and the application of ESG standards.

INDIA’S CORPORATE SECTOR ON RISE

The Economic Survey says that India’s corporate sector’s profitability is at a 15-year high in FY24 with profits quadrupling between FY20 and FY23.

It mentions that businesses have an obligation to themselves to strike the right balance between deployment of capital and deployment of labour. In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability.

AGRO-PROCESSING AND CARE ECONOMY FOR QUALITY EMPLOYMENT

The Economic Survey 2023-24 says that India can utilise the range of products on offer by its different agro-climatic zones and productively engage the sizeable rural workforce, comprising women who seek remunerative part-time employment and educated youth who can be technically skilled to handle small to medium scale agro-processing units.

There remains ample scope for shifting MGNREGS labour to more productive and less fiscally straining ventures. Low value-addition in agriculture and rising demand for diverse and local food products also provides a good opportunity for India to create more jobs in this sector. There are also more avenues for captive demand of agro-processed output and the sector can benefit from the synergies between the multiple existing programmes such as Mega Food Park, Skill India, Mudra, one district-one product, etc., for labour, logistics, credit, and marketing.

The care economy holds great importance for a young country like India, which has both demographic and gender dividends to reap. Highlighting the need to prepare for future care requirements of an ageing population, the Economic Survey 2023-24 says that defining care work is the first step towards acknowledging care as ‘work’.

It mentions that India’s care needs are slated to expand significantly in the next 25 years, as an ageing population follows the ongoing demographic transition while the population of children stays relatively sizeable. By 2050, the share of children is estimated to decline to 18 per cent (i.e., 30 crore persons), while the proportion of elderly persons would rise to 20.8 per cent (i.e., 34.7 crore persons). Thus, compared to 50.7 crore persons in 2022, the country would need to care for 64.7 crore persons in 2050.

Recognising the disproportionate burden of care on women being consequential to the low Female Labour Force Participation Rate (FLFPR) across the world, including India, the Survey also lays emphasis on ensuring equal opportunity for females by decoupling gender and unpaid care work.

The economic value of developing a care sector is twofold – increasing FLFPR and promoting a promising sector for output and job creation. The Survey mentions that in case of India, direct public investment equivalent to 2 per cent of GDP has the potential to generate 11 million jobs, nearly 70 per cent of which will go to women.

Senior care reforms in India

The care responsibility associated with an increasingly older population necessitates formulating a future-ready wholesome elderly care policy with the Survey mentioning the care economy as a top-tier entry in India’s to-do list for becoming a developed nation by 2047. According to the Asian Development Bank report, utilising this ‘silver dividend’ of untapped work capacity of population aged 60-69 years is estimated to increase GDP by an average of 1.5 per cent for Asian economies.

*****

Infrastructure Expansion

 With increased public investment over the last five years, India has witnessed significant expansion in physical and digital connectivity and social infrastructure including sanitation and water supply helping to improve quality of life of the people, states the Economic Survey 2023-24 tabled by Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman in Parliament today. The Survey notes that the foremost among the responses initiated by the Union Government to overcome the pandemic-driven slowdown in the economy was increase in capital expenditure, aimed particularly at the creation of high quality physical and social infrastructure facilities. Keeping the momentum going over the last five years, the Survey says, capital expenditure of the Government has seen an almost three-fold increase in FY24, relative to FY20 levels. It added that the major beneficiaries of this step-up are key foundational assets like roads and railways.

ROAD INFRASTRUCTURE:

The Economic Survey observes that strategic planning and step-up in public investment have resulted in the upgradation of the road network system into a resilient and efficient infrastructure. The capital investment by the Government and private sector rose from 0.4 per cent in FY15 to about 1.0 per cent of GDP (around ₹3.01 lakh crore) in FY24. The sector has attracted its highest-ever private investment in FY24 as the private sector capitalises on a conducive policy environment, mentions the Survey.

Referring to the significant progress in the development of national highways, the Survey says that the development of national highways, over the last ten years, has increased by 1.6 times from 2014 to 2024. It states that the Bharatmala Pariyojana has significantly expanded the national highway network, increasing the length of high-speed corridors by 12 times and 4-lane roads by 2.6 times between 2014 and 2024. Further, the Survey notes that the efficiency of highway construction has improved due to the systematic push through the corridor-based National Highway development approach. The average pace of NH construction increased by 3 times from 11.7 km per day in FY14 to 34 km per day by FY24, it states. The survey observes that the remarkable improvement of the NH network has brought about substantial advancements in logistics efficiency which  is evidenced by the consistently rising India’s ranking in the World Bank’s ‘Logistics Performance Index, from 54 in 2014 and 44 in 2018, to 38 in 2023.

To further enhance logistic efficiency, the Economic Survey has mentioned that the Ministry of Road Transport & Highways (MoRT&H) has dedicated Multi-Modal Logistics Parks (MMLP). It says that a total of six multimodal logistics parks (MMLPs) have been awarded until FY24, and ₹2,505 crore have been awarded for dedicated multimodal logistics parks (MMLPs) in FY24. Further, it stated, seven MMLPs are planned to be awarded in FY25.

RAILWAYS INFRASTRUCTURE

According to Economic Survey 2023-24, Indian Railways, with over 68,584 route km (as of 31st March 2024) and 12.54 lakh employees (as of 1st April 2024), is the fourth largest network in the world under single management. Survey states that the capital expenditure on Railways has increased by 77 per cent over the past 5 years (₹2.62 lakh crore in FY24) with significant investments in the construction of new lines, gauge conversion, and doubling.

The Survey notes that the Railways has  achieved its highest-ever production for both locomotives and wagons in FY24. Survey states that 51 pairs of Vande Bharat have been introduced until March 2024. The fast pace of infrastructure augmentation has been the result of a substantial increase in financial allocation along with close project monitoring and regular follow-up with stakeholders for expeditious land acquisition and clearances, the Survey observes.

The Survey has also mentioned about the initiatives undertaken by Railways for providing clean environment in and around railway stations and trains, such as replacement of conventional toilets with bio-toilets on coaches leading to clean tracks, segregation of bio-degradable/non bio-degradable waste, solid waste management and discouraging use of single use plastic.

The key focus areas for Railways, according to Economic Survey 2023-24 include fast capacity augmentation, modernisation of rolling stock and maintenance, improving quality of services and energy efficiency. In line with this, the Survey states that the  investments are prioritised in areas like dedicated freight corridors, high-speed rail, modern passenger services like Vande Bharat, Amrit Bharat Express, Aastha Special Trains, high-capacity rolling stock and last-mile rail linkages. Projects for three major corridors viz. (1) High-traffic density corridors, (2) Energy, Mineral and Cement Corridors and (3) Rail Sagar (port connectivity) corridors are also planned to reduce logistics cost and carbon footprint, the Survey said. As per the Survey,  Railways has also planned to reduce its carbon footprint primarily through sourcing of its energy requirements through renewable energy sources and the expected requirement of installation of renewable capacity by 2029-30 is around 30 Giga Watts. Other strategies mentioned by Survey  include shifting from diesel to electric traction, promotion of energy efficiency and afforestation.

*****

India’s real GDP is projected to grow between 6.5–7 per cent in 2024-25

 India’s real GDP is projected to grow between 6.5–7 per cent in 2024-25. The Indian economy recovered swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20 levels. This was stated by the Economic Survey 2023-24 presented in Parliament today by the Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman.

The Survey points out that the domestic growth drivers have supported economic growth in FY24 despite uncertain global economic performance. It also adds that during the decade ending FY20, India grew at an average annual rate of 6.6 per cent, more or less reflecting the long-run growth prospects of the economy.

The Survey, however cautions that any escalation of geopolitical conflicts in 2024 may lead to supply dislocations, higher commodity prices, reviving inflationary pressures and stalling monetary policy easing with potential repercussions for capital flows. This can also influence RBI’s monetary policy stance. The global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a contraction in volumes in 2023.

The Survey highlights that leveraging the initiatives taken by the government and capturing the untapped potential in emerging markets; exports of business, consultancy and IT-enabled services can expand. Despite the core inflation rate being around 3 per cent, the RBI, with one eye on the withdrawal of accommodation and another on the US Fed, has kept interest rates unchanged for quite some time, and the anticipated easing has been delayed.

The Economic Survey says that India’s economy showed resilience to a gamut of global and external challenges as real GDP grew by 8.2 percent in FY 24, exceeding 8 percent mark in three out of four quarters of FY 24, driven by stable consumption demand and steadily improving investment demand.

The Survey underlines that the shares of the agriculture, industry and services sectors in overall GVA at current prices were 17.7 per cent, 27.6 per cent and 54.7 per cent respectively in FY24. GVA in the agriculture sector continued to grow, albeit at a slower pace, as the erratic weather patterns during the year and an uneven spatial distribution of the monsoon in 2023 impacted overall output.

Within the industrial sector, manufacturing GVA shrugged off a disappointing FY23 and grew by 9.9 per cent in FY24, as manufacturing activities benefitted from reduced input prices while catering to stable domestic demand. Similarly, construction activities displayed increased momentum and registered a growth of 9.9 per cent in FY24 due to the infrastructure build out and buoyant commercial and residential real estate demand.

Various high-frequency indicators reflect the growth in the services sector. Both Goods and Services Tax (GST) collections and the issuance of e-way bills, reflecting wholesale and retail trade, demonstrated double-digit growth in FY24. Financial and professional services have been a major driver of growth post the pandemic, the survey added.

Gross Fixed Capital Formation (GFCF) continues to emerge as an important driver of growth. GFCF by private non-financial corporations increased by 19.8 per cent in FY23. There are early signs that the momentum in private capital formation has been sustained in FY24. As per data provided by Axis Bank Research, private investment across a consistent set of over 3,200 listed and unlisted non-financial firms has grown by 19.8 per cent in FY24.

Apart from private corporations, households have also been at the forefront of the capital formation process. In 2023, residential real estate sales in India were at their highest since 2013, witnessing a 33 per cent YoY growth, with a total sale of 4.1 lakh units in the top eight cities.

With cleaner balance sheets and adequate capital buffers, the banking and financial sector is well-positioned to cater to the growing financing needs of investment demand. Credit disbursal by scheduled commercial banks (SCBs) to industrial micro, small and medium enterprises (MSMEs) and services continues to grow in double digits despite a higher base. Similarly, personal loans for housing have surged, corresponding to the increase in housing demand.

The Survey states that despite global supply chain disruptions and adverse weather conditions, domestic inflationary pressures moderated in FY24. After averaging 6.7 per cent in FY23, retail inflation declined to 5.4 per cent in FY24. This has been due to the combination of measures undertaken by the Government and the RBI. The Union Government undertook prompt measures such as open market sales, retailing in specified outlets, timely imports, reduced the prices of Liquified Petroleum Gas (LPG) cylinders and implemented a cut in petrol and diesel prices. The RBI raised policy rates by a cumulative 250 bps between May 2022 and February 2023.

The Survey says, against the global trend of widening fiscal deficit and increasing debt burden, India has remained on the course of fiscal consolidation. The fiscal deficit of the Union Government has been brought down from 6.4 per cent of GDP in FY23 to 5.6 per cent of GDP in FY24, according to provisional actuals (PA) data released by the Office of Controller General of Accounts (CGA).

The growth in gross tax revenue (GTR) was estimated to be 13.4 per cent in FY24, translating into tax revenue buoyancy of 1.4. The growth was led by a 15.8 per cent growth in direct taxes and a 10.6 per cent increase in indirect taxes over FY23.

The Survey adds that broadly, 55 per cent of GTR accrued from direct taxes and the remaining 45 per cent from indirect taxes. The increase in indirect taxes in FY24 was mainly driven by a 12.7 per cent growth in GST collection. The increase in GST collection and E-way bill generation reflects increased compliance over time.

The capital expenditure for FY24 stood at ₹9.5 lakh crore, an increase of 28.2 per cent on a YoY basis, and was 2.8 times the level of FY20. The Government’s thrust on capex has been a critical driver of economic growth amidst an uncertain and challenging global environment. Spending in sectors such as road transport and highways, railways, defence services, and telecommunications delivers higher and longer impetuses to growth by addressing logistical bottlenecks and expanding productive capacities.

The Survey says, it is also incumbent upon the private sector to take forward the momentum in capital formation on its own and in partnership with the Government. Their share in addition to the capital stock in terms of machinery and equipment, started growing robustly only since FY22, a trend that needs to be sustained on the strength of their improving bottom-line and balance sheets in order to generate high-quality jobs.

The Survey points out that the State governments continued to improve their finances in FY24. Preliminary unaudited estimates of finances for a set of 23 states, published by the Comptroller and Auditor General of India, suggest that the gross fiscal deficit of these 23 states was 8.6 per cent lower than the budgeted figure of ₹9.1 lakh crore. This implies that fiscal deficit as a per cent of GDP for these states came in at 2.8 per cent as against a budgeted 3.1 per cent. The quality of spending by state governments improved, too, with state governments focusing on Capex as well.

The Union Government’s transfers to the states are highly progressive, with states with lower Gross State Domestic Product (GSDP) per capita receiving higher transfers relative to their GSDP.

The Survey highlights that the RBI’s vigil over the banking and financial system and its prompt regulatory actions ensure that the system can withstand any macroeconomic or systemic shock. Data from the RBI’s Financial Stability Report of June 2024 show that the asset quality of Scheduled commercials banks has improved, with the Gross Non-Performing Assets (GNPA) ratio declining to 2.8 per cent in March 2024, a 12-year low.

 The profitability of SCBs remained steady, with the return on equity and return on assets ratios at 13.8 per cent and 1.3 per cent, respectively, as of March 2024. Macro stress tests also reveal that SCBs would be able to comply with minimum capital requirements even under severe stress scenarios. The soundness of the banking system will facilitate the financing of productive opportunities and lengthen the financial cycle, both of which are necessary to sustain economic growth.

The Survey highlights that on the external front, moderation in merchandise exports continued during FY24, mainly on account of weaker global demand and persistent geopolitical tensions. Despite that India’s service exports have remained robust, reaching a new high of USD 341.1 billion in FY24. The exports (merchandise and services) in FY24 grew by 0.15 per cent, while the total imports declined by 4.9 per cent stated the survey.

Net private transfers, mostly comprising remittances from abroad, grew to USD 106.6 billion in FY24. As a result, the Current Account Deficit (CAD) stood at 0.7 per cent of the GDP during the year, an improvement from the deficit of 2.0 per cent of GDP in FY23. The net FPI inflows stood at USD 44.1 billion during FY24 against net outflows in the preceding two years.

Overall, India’s external sector is being deftly managed with comfortable foreign exchange reserves and a stable exchange rate. Forex reserves as of the end of March 2024 were sufficient to cover 11 months of projected imports.

The Survey underscores that the Indian Rupee has also been one of the least volatile currencies among its emerging market peers in FY24. India’s external debt vulnerability indicators also continued to be benign. External debt as a ratio to GDP stood at a low level of 18.7 per cent as of end-March 2024. The ratio of foreign exchange reserves to total debt stood at 97.4 per cent as of March 2024 as per the Economic Survey 2023- 24.

The Survey points out that India’s social welfare approach has undergone a shift from an input-based approach to outcome-based empowerment. Government initiatives like providing free-of-cost gas connections under PM Ujjwala Yojana, building toilets under the Swacch Bharat Mission, opening bank accounts under Jan Dhan Yojana, building pucca houses under PM-AWAS Yojana have improved capabilities and enhanced opportunities for the underprivileged sections. The approach also involves the targeted implementation of reforms for last-mile service delivery to truly realise the maxim of “no person left behind”, the Survey added.

The Direct Benefit Transfer (DBT) scheme and Jan Dhan Yojana-Aadhaar-Mobile trinity have been boosters of fiscal efficiency and minimization of leakages, with ₹36.9 lakh crore having been transferred via DBT since its inception in 2013.

The Survey says, the all-India annual unemployment rate (persons aged 15 years and above, as per usual status) has been declining since the pandemic and this has been accompanied by a rise in the labour force participation rate and worker-to-population ratio. From the gender perspective, the female labour force participation rate has been rising for six years, i.e., from 23.3 per cent in 2017-18 to 37 per cent in 2022-23, driven mainly by the rising participation of rural women.

On the global economic scenario the Survey says that after a year marked by global uncertainties and volatilities, the economy achieved greater stability in 2023. While uncertainty stemming from adverse geopolitical developments remained elevated, global economic growth was surprisingly robust.

The Survey states as per the World Economic Outlook (WEO), April 2024 of the International Monetary Fund (IMF) , the global economy registered a growth of 3.2 per cent in 2023.

*****

Atal Innovation Mission and World Intellectual Property Organization

 Union Minister for Education Shri Dharmendra Pradhan, today in New Delhi, presided over the signing of the ‘Letter of Intent’ between Atal Innovation Mission (AIM) and World Intellectual Property Organization (WIPO), the United Nations agency that serves the world’s innovators and creators.

 

Image

 

Executive Director, WIPO Academy, Mr. Sherif Sadallah; Vice Chairman, NITI Aayog, Shri Suman Bery; Member, Science & Technology, NITI Aayog, Dr. V.K Saraswat; Head WIPO Academy, Ms. Altaye Tedla; and Mission Director, AIM, Dr. Chintan Vaishnav and other officials were also present at the event.

 

Image

 

Speaking at the event Shri Pradhan said that an Innovation-based knowledge economy will lead India to Viksit Bharat 2047. He said that the initiative will drive innovation, entrepreneurship and Intellectual Property programs for the benefit of all, particularly the Global South. He also mentioned that innovation is India’s strength and this path-breaking partnership between AIM and WIPO will take the best of India’s innovation models to countries that are on similar development trajectories, work to enhance understanding and awareness about IPR right from the school level, unlock the innovation potential of the world, and further inclusive and sustainable economic growth.

Shri Pradhan expressed his gratitude to Prime Minister Shri Narendra Modi for the vision to witness record growth in the country’s innovation ecosystem. The country has registered steady progress in the Global Innovation Index, reflecting the commitment to nurturing creativity and entrepreneurship, he added.

Scope/ Objectives of the Indo-WIPO Joint Program

•     Taking the key AIM programs (ATL, AIC models) to the nations of the global south and those in transition; this would include structuring country-specific programs basis, as the country needs.

•     Enhancing the understanding of Intellectual Property Rights (IPR) among various stakeholders, particularly students, teachers, innovators and entrepreneurs of India.

•     Enhancing the understanding of the importance of IPR for development and economic growth, considering the educational and training needs of students, teachers, innovators and entrepreneurs of India.

•     Establishing a network of trainers of innovation, creativity, and Intellectual Property (IP) and

•     Familiarizing the target beneficiaries and learners with the theories of innovation and creativity.

 

Both WIPO and AIM-NITI Aayog intend to jointly work on structuring programs to take India’s Innovation Model (ATL & AIC) to other countries. Both organizations shall also closely collaborate in the designing and implementation of various IP training and capacity-building program(s), taking into consideration the specific requirements of the ecosystem and doing preliminary needs assessments of the target beneficiaries.

******

PROMOTION AND PRESERVING OF ART AND CULTURE

 The Ministry of Culture administers various Central Sector Schemes under which financial assistance is provided to eligible cultural organizations / individuals working for promotion and preservation of art and culture across the country including Palghar district of Maharashtra and tribal areas of the country. The brief of these scheme is given at Annexure – I.

 The year-wise details of funds released to various cultural organizations / individuals under various schemes in the state of Maharashtra including Palghar district during the last five years are given at Annexure – II.

This information was given by the Minister of Culture and Tourism, Shri Gajendra Singh Shekhawat in a written reply in the Lok Sabha today.

****

Beena Yadav

Annexure– I

Annexure referred to in reply of part (a) and (b) of the Lok Sabha Unstarred Question No. 166 for 22.07.2024

  1. FINANCIAL ASSISTANCE FOR PROMOTION OF GURU-SHISHYA PARAMPARA (REPERTORY GRANT)

The objective of this scheme is to provide financial support for all genres of performing arts activities like dramatic groups, theatre groups, music ensembles, children theatre etc. and imparting training of artists by their respective Guru on regular basis in line with Guru–Shishya Parampara. As per the scheme, support is provided to 1 Guru and maximum 18 Shishyas in the field of theatre and 1 Guru and maximum 10 Shishyas in the field of music & dance. The Amount of Assistance for Guru is Rs.15000/- p.m. and for the Shishya, the same is Rs.2000-10000/-p.m depending upon the age of artist.

 

  1. FINANCIAL ASSISTANCE FOR PROMOTION OF ART AND CULTURE: This scheme has following sub-components :
  2. Financial Assistance to Cultural organizations with National Presence

To promote and support cultural organisations with national presence involved in promotion of art and culture throughout the country, this grant is given to such organisations that have a properly constituted managing body, registered in India; having a pan-India character with national presence in its operation; adequate working strength; and have spent 1 crore or more during 3 of the last 5 years on cultural activities. The quantum of grant under this scheme is Rs.1 crore which can be increased to Rs. 5 crore in exceptional cases.

  1. Cultural Function & Production Grant (CFPG)

The objective of this scheme component is to provide financial support to NGOs/ Societies/ Trusts/ Universities etc. for Seminars, Conference, Research, Workshops, Festivals, Exhibitions, Symposia, Production of Dance, Drama-Theatre, Music etc. The maximum grants provided under CFPG is Rs.5 Lakh for an organization which can be increased to Rs. 20.00 lakhs in exceptional cases

  1. Financial Assistance for the Preservation & Development of Cultural Heritage of the Himalayas

            The objective of this scheme component is to promote and preserve the cultural heritage of the Himalayas through research, training and dissemination through audio visual programmes. The financial support is provided to the organizations in the States falling under the Himalayan Region i.e. Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.  The quantum of funding is Rs. 10.00 lakhs per year for an organization which can be increased to Rs. 30.00 lakhs in exceptional cases.

  1. Financial Assistance for the Preservation & Development of Buddhist/Tibetan Organization

Under this scheme component financial assistance is provided to the voluntary Buddhist/Tibetan organizations including Monasteries engaged in the propagation and scientific development of Buddhist/Tibetan Cultural and tradition and research in related fields. The quantum of funding under scheme component is Rs. 30.00 lakhs per year for an organization which can be increased to 1.00 crore in exceptional cases

  1. Financial Assistance for Building Grants including Studio Theatres

The objective of this scheme component is to provide financial support to NGO, Trust, Societies, Govt. Sponsored bodies, University, College etc. for creation of Cultural infrastructure (i.e. studio theatre, auditorium, rehearsal hall, classroom etc.) and provision of facilities like electrical, air conditioning, acoustics, light and sound systems etc. Under this scheme component, the maximum amount of grant is up to Rs.50 Lakh in metro cities and up to Rs.25 Lakh in non- metro cities.

  1. Financial Assistance for Allied Cultural Activities

The objective of this scheme component is to provide financial assistance to all eligible organizations for creation of assets for enhancing the audio-visual spectacle for allied cultural activities to give firsthand experience of live performances on regular basis and during festivals in open/closed areas/spaces. Maximum assistance under the scheme component, including applicable duties & taxes and also Operation & Maintenance (O&M) costing for five years, will be as under:- (i) Audio: Rs.1.00 crore; (ii) Audio+Video: Rs. 1.50 crore.

  • vii. Domestic Festivals and Fairs

The objective of this scheme is to provide assistance for holding the ‘Rashtriya Sanskriti Mahotsavs’ organized by Ministry of Culture.

3. FINANCIAL ASSISTANCE FOR CONSTRUCTION OF TAGORE CULTURAL COMPLEXES (TCC)

The aim of the scheme component is to provide financial support to NGO, Trust, Societies, Govt. Sponsored bodies, State / UT Govt. University, Central/State Govt. agencies/bodies, Municipal Corporations, reputed not-for-profit organizations etc. for creation of new Large Cultural Spaces such as Auditorium with facilities and infrastructure for stage performances (dance, drama and music), exhibitions, seminars, literary activities, green rooms, etc. The Scheme component also provides support for restoration, renovation, extension, alteration, up-gradation, modernization of existing cultural facilities (Rabindra Bhawans, Rangshalas) etc. Under this scheme component, the financial assistance for any project will normally be up to a maximum of Rs. 15.00 crore. Central financial assistance would be 90% of the total approved project cost and remaining 10% of the total approved project cost will be borne by the recipient State Govt./NGO or concerned organization for NER Projects and except NER, there is 60:40 ratio for central assistant and state share (matching share).

4. SCHEME OF SCHOLARSHIP AND FELLOWSHIP FOR PROMOTION OF ART AND CULTURE: The scheme consists of following three components:

  1. Scheme for the Award of Fellowship to Outstanding Persons in the field of Culture

Upto 400 fellowships (200 Junior and 200 Senior) are awarded in a batch year to outstanding persons in the age group of 25 to 40 years (Jr.) and above 40 years (Sr.) in different cultural fields @ of Rs. 10,000/- p.m. and 20,000/-p.m. for the period of 2 years for cultural research. The Fellowship is released in four equal six monthly installments.

  1. Scheme for Scholarships to Young Artistes in Different Cultural Fields

Upto 400 Scholarships are awarded in a batch year. Under this scheme financial assistance is given to young artistes of outstanding promise in the age group of 18-25 years for advanced training within India in the field of Indian Classical Music, Indian Classical Dance, Theatre, Mime, Visual art, Folk, Traditional and Indigenous Arts and Light Classical Music etc. @ Rs. 5,000/- p.m. for 2 years. The Scholarship is released in four equal six monthly installments.

  1. Tagore National Fellowship for Cultural Research

The purpose of the Scheme Component is to invigorate and revitalize the various institutions under the Ministry of Culture (MoC) and other identified cultural institutions in the country, by encouraging scholars/ academicians to affiliate themselves with these institutions to work on projects of mutual interest. Upto 15 Fellowships (Rs.80,000/- p.m. + Contingency Allowance) and 25 Scholarships (Rs.50,000/- p.m. + Contingency Allowance) for a maximum period of 2 Years. The Fellowship is released in four equal six monthly installments.

 

  1. FINANCIAL ASSISTANCE FOR VETERAN ARTISTS

The objective of this Scheme is to provide financial assistance of Rs.6.000/- p.m. to the old artistes and scholars aged 60 years above having annual income not exceeding Rs.72,000/- who have contributed significantly in their specialized fields of arts, letters etc. In the event of death of the beneficiary, the financial assistance is transferred to his/her spouse.

  1. SEVA BHOJ YOJANA

Under the Scheme of ‘Seva Bhoj Yojna’ Central Goods and Services Tax (CGST) and Central Government’s share of Integrated Goods and Services Tax (IGST) paid on purchase of specific raw food items by Charitable/Religious Institutions for distributing free food to public shall be reimbursed as Financial Assistance by the Government of India. Free ‘prasad’ or free food or free ‘langar’ / ‘bhandara’ (community kitchen) offered by charitable/religious institutions like Gurudwara, Temples, Dharmik Ashram, Mosques, Dargah, Church, Math, Monasteries etc. are covered under Seva Bhoj Yojana.

 

Annexure – II

Annexure referred to in reply of part (c) of the Lok Sabha Unstarred Question No. 166 for 22.07.2024

 

Details of the funds released under various Schemes during the last five years in the state of Maharashtra

Sl. No.

Name of Scheme

Financial Year

2019-20

(Rs. in lakhs)

Financial Year

2020-21

(Rs. in lakhs)

Financial Year

2021-22

(Rs. in lakhs)

Financial Year

2022-23

(Rs. in lakhs)

Financial Year

2023-24

(Rs. in lakhs)
  1.  

Financial Assistance for Promotion of Guru-Shishya Parampara (Repertory Grant)

197.76

156.04

237.36

900.72

625.70
  1.  

Financial Assistance to Cultural Organization with National Presence (including R.K. Mission)

5.81

–

–

–

15.00
  1.  

Cultural Function & Production Grant (CFPG)

38.97

56.27

63.63

104.12

24.64
  1.  

Financial Assistance for the Development of Buddhist/Tibetan Culture & Art

–

20

15

38.25

26
  1.  

Building Grant including Studio Theatre

–

8.8

5.4

–

8.00
  1.  

Allied Cultural Activities

35.48

–

–

–

–
  1.  

Scheme for the Award of Fellowship to Outstanding Persons in the Field of Culture

59.40

66.00

121.80

118.80

84.00
  1.  

Scheme for Scholarships to Young Artistes in Different Cultural Fields

33.30

39.00

39.60

12.00

38.10
  1.  

Tagore National Fellowship for Cultural Research

17.13

3.60

30.10

–

33.60
  1.  

Financial Assistance for Veteran Artists

85.86

106.61

190.49

273.49

795.97

 

Moidams – the Mound-Burial system of the Ahom Dynasty

 India is hosting the World Heritage Committee Meeting for the first time. It takes place from 21 to 31 July 2024, at Bharat Mandapam in New Delhi. The World Heritage Committee meets annually and is responsible for managing all matters on World Heritage and deciding on sites to be inscribed on the World Heritage list.

The 46th session of the World Heritage Committee in 2024 will examine 27 nominations from around the world, including 19 Cultural, 4 Natural, 2 Mixed sites and 2 Significant modifications to the boundaries. Out of which, India’s Moidams – The Mound – Burial System of the Ahom Dynasty is set to be examined under the category of Cultural Property.

Moidams – the Mound-Burial system of the Ahom Dynasty

  

The Tai-Ahom clan, migrating from China, established their capital in various parts of the Brahmaputra River Valley from the 12th to the 18th century CE. One of the most revered sites among them was Choraideo, where the Tai-Ahoms established their first capital under Chau-lung Siu-ka-pha at the foothills of the Patkai hills. This sacred site, known as Che-rai-doi or Che-tam-doi, was consecrated with rituals that reflected the deep spiritual beliefs of the Tai-Ahoms. Over centuries, Choraideo retained its significance as a burial ground where the departed souls of the Tai-Ahom royals transcended into the afterlife.

Historical Context

The Tai-Ahom people believed their kings were divine, leading to the establishment of a unique funerary tradition: the construction of Moidams, or vaulted mounds, for royal burials. This tradition spanned 600 years, marked by the use of various materials and architectural techniques evolving over time. Initially using wood, and later stone and burnt bricks, the construction of Moidams was a meticulous process detailed in the Changrung Phukan, a canonical text of the Ahoms. Rituals accompanying royal cremations were conducted with great grandeur, reflecting the hierarchical structure of Tai-Ahom society.

Excavation shows that each vaulted chamber has a centrally raised platform where the body was laid. Several objects used by the deceased during his life, like royal insignia, objects made in wood or ivory or iron, gold pendants, ceramic ware, weapons, clothes to the extent of human beings (only from the Luk-kha-khun clan) were buried with their king.

   

Architectural Features

Moidams are characterized by vaulted chambers, often double-storied, accessed through arched passages. The chambers housed centrally raised platforms where the deceased were laid to rest along with their royal insignia, weapons, and personal belongings. The construction of these mounds involved layers of bricks, earth, and vegetation, transforming the landscape into undulating hillocks reminiscent of celestial mountains.

Cultural Significance

The continuity of the Moidam tradition at Choraideo underscores its Outstanding Universal Value under UNESCO criteria. This funerary landscape not only reflects Tai-Ahom beliefs about life, death, and the afterlife but also served as a testament to their cultural identity amidst shifts towards Buddhism and Hinduism among the population. The concentration of Moidams at Choraideo distinguishes it as the largest and most significant cluster, preserving the grand royal burial practices unique to the Tai-Ahoms.

Conservation Efforts

Despite challenges such as vandalism by treasure seekers in the early 20th century, concerted efforts by the Archaeological Survey of India and the Assam State Department of Archaeology have restored and preserved the integrity of Choraideo. Protected under national and state laws, the site continues to be managed to safeguard its structural and cultural authenticity.

 

Comparisons with Similar Properties

The Moidams of Choraideo can be compared to royal tombs in ancient China and the pyramids of Egyptian pharaohs, illustrating universal themes of honoring and preserving royal lineage through monumental architecture. Within the broader Tai-Ahom cultural region spanning parts of Southeast Asia and Northeast India, Choraideo stands out for its scale, concentration, and spiritual significance.

Choraideo at the foothills of the Patkai range remains a profound symbol of Tai-Ahom heritage, encapsulating their beliefs, rituals, and architectural prowess. As a landscape shaped by centuries of royal burials, it continues to inspire awe and reverence, offering insights into the cultural evolution and spiritual worldview of the Tai-Ahoms. Preserved through careful conservation efforts, Choraideo stands as a testament to the enduring legacy of the Tai-Ahom civilization in the Brahmaputra River Valley. In conclusion, the Moidams of Choraideo not only embody architectural and cultural significance but also serve as a poignant reminder of the Tai-Ahom people’s deep spiritual connection to their land and their departed kings.

Click here to see in PDF:
 

References

Self-Reliant India, Eco-Friendly Future

 India is effectively managing the delicate balance between increasing its coal mining output and strategically phasing down the polluting processes associated with coal mining. This approach aims to boost energy production while mitigating environmental impacts.

Chhattisgarh-based Coal India subsidiary Southeastern Coalfields Limited’s (SECL) Gevra and Kusmunda coal mines have secured the 2nd and 4th spot in the list of the worlds 10 largest coal mines released by WorldAtlas.com.

These two mines, each producing over 100 million tons of coal annually and accounting for around 10% of India’s total coal production, utilize some of the world’s largest and most advanced mining machines. Notably, they employ the “Surface Miner,” a cutting-edge technology that extracts and processes coal without blasting, promoting eco-friendly mining operations.

Coal Mining a Big Booster for Economic Growth

Through ongoing investment and a strong focus on modern technologies, India’s coal production reached 893.19 million tonnes in 2022-23. For 2023-24, production increased to 997.25 million tonnes, achieving an 11.65% growth. It is anticipated through comprehensive studies that coal demand in 2030 will likely reach 1462 MT and 1755 MT by 2047.

Coal mining sector has proved to be a big booster for economic growth of the coal producing States in the Country. State Governments are entitled to receive 14% of Royalty on sale price of coal. In case of captive/ commercial mines State Government are also entitled to receive the revenue share offered by the auction holder in transparent bidding process.

Apart from this, State Governments also benefit from increased employment, land compensation, increased investment in allied infrastructure like railways, roads and several other economic benefits.

The focus of the Central Government for enhancing coal production to meet the growing economy has directly helped the State Govts in realisation of additional revenue, which in turn has infused capital expenditure in the coal producing regions thereby bringing in development, both in infrastructure and social sector.

SUSTAINABILITY IN COAL MINES

The mining industry has long been associated with significant environmental degradation and resource depletion. However, in recent years, the concept of green mining has emerged as a beacon of hope for a sustainable future

Green Mining Led to a Sustainable Future

Green mining refers to the implementation of eco-friendly practices and technologies in the mining industry to reduce its environmental impact. It involves using renewable energy sources, recycling mine waste, minimizing water consumption, and employing sustainable extraction techniques.

The goal of adopting green mining is to mitigate the industry’s carbon footprint and promote responsible mining. To achieve environmental sustainability, the following is a brief explanation of the environmental protection measures being adopted by coal/lignite PSUs in coal mining areas

1. Air Quality Management

Effective air quality management in coal mines is essential for safeguarding the health of workers, protecting the environment, and ensuring sustainable mining operations. Coal mining activities often generate dust and emissions that can impact air quality both within the mine and in surrounding areas.

Implementing robust air quality management practices helps mitigate these impacts by controlling dust levels, monitoring emissions, and employing technologies to minimize pollution.

Wet drilling is used to reduce dust generation. Dust suppression systems are also included with drill machines. Surface miners and BWEs are being used more frequently, which reduces the need for drilling and blasting and, thus, the pollution load. Vehicles get routine maintenance in accordance with the manufacturer’s specifications.

Fig. Mist Gun operation to control dust

Fig. PM 10 Analyser in CCL

Fig. Surface Miner with water jets, Gevra OCP, SECL

Fig. Mobile sprinklers in operation for suppression of dust

 

         2. Mine Closure, Bio-reclamation & Land Use Management

Mine closure, bio-reclamation, and land use management are critical components of responsible coal mining practices aimed at minimizing environmental impacts and promoting sustainable land use. When a coal mine reaches the end of its operational life, a systematic approach to closure ensures that the site is safely and effectively rehabilitated.

Bio-reclamation involves restoring the ecological balance by reintroducing native flora and fauna, while land use management focuses on repurposing the land for beneficial uses, such as agriculture or recreational areas. Together, these practices help mitigate the environmental footprint of mining activities, support ecosystem recovery, and enhance the long-term usability of former mining sites.

 

 

 

Economic Significance of the Coal Sector Extends Beyond Energy Production

Single largest contributor to Railway Freight: Coal stands as the single largest contributor to railway freight, with an average share of nearly 49% of total freight income amounting to Rs. 82,275 Crore in the fiscal year 2022-23 alone. This revenue contribution has surpassed 33% of total railway earnings, showcasing the sector’s substantial influence on India’s transportation network.

Government Revenue: The coal sector contributes over Rs. 70,000 Crore annually to the central and state governments through royalties, GST, and other levies. These funds play a crucial role in fostering socio-economic development and infrastructure enhancement in coal-producing regions. Coal production generates substantial revenue for both Central and State Governments, with royalty collections reaching Rs. 23,184.86 Crore in the fiscal year 2022-23.

Employment: The coal sector provides enormous employment opportunities, particularly in coal-producing districts of Eastern States. With over 239,210 employees in Coal India Ltd and its subsidiaries, supplemented by contractual workers and outsourcing engagements, the sector sustains livelihoods for thousands of families. Additionally, over 65,000 contractual workers are engaged in mining operations with CIL and 37,000 workers are engaged through outsourcing for security, driver and housekeeping.  With an average 24,000 trucks are engaged in coal transportation supporting 50,000 people and 30000, workers are engaged in captive/commercial coal mining companies contributing to job creation.

Dividend Payments: Coal India Ltd consistently contributes substantial dividends to the Central Government and has paid an average of Rs. 6,487 Crore annually over the past five years. The FY 2022-23 has seen a significant dividend payment of Rs. 9,475.85 Crore, highlighting the sector’s financial stability and contribution to government revenues.

Corporate Social Responsibility (CSR): Coal sector PSUs prioritize CSR initiatives, with an average annual expenditure of Rs. 608 Crore over the past five years. Notably, Coal India Ltd alone has allocated an average of Rs. 517 Crore annually for CSR activities. Over 90% of the expenditure has been incurred on, socio- economic development focusing on healthcare, education, water supply and skill development in coal-producing regions.

Capital Expenditure: Substantial investments in capital expenditure, averaging Rs. 18,255 Crore annually over the past five years, have facilitated infrastructure development and resource optimization within coal sector PSUs. This capital infusion stimulates economic growth and fosters a conducive environment for sustainable development.

As India continues its trajectory of growth and development, the coal sector remains a cornerstone of the nation’s progress, driving economic prosperity, employment generation, and social well-being.

Conclusion

India’s approach to balancing increased coal mining output with a strategic phase-down of pollution reflects a commitment to both economic growth and environmental stewardship. By enhancing coal production to meet rising energy demands while simultaneously implementing measures to reduce pollution, India is working towards a more sustainable and responsible mining industry. This dual focus on maximizing output and minimizing environmental impact demonstrates a forward-thinking strategy that aims to support economic development, improve air quality, and contribute to long-term sustainability in the coal sector.

References:

pib.gov.in/PressReleaseIframePage.aspx?PRID=1941340

chap7AnnualReport2023en.pdf (coal.nic.in)

Sustainable Development for Coal Sector (pib.gov.in)

pib.gov.in/PressReleaseIframePage.aspx?PRID=2009196

chap7AnnualReport2023en.pdf (coal.nic.in)

Press Information Bureau (pib.gov.in)

Click here to see in PDF

*****