The Competition Commission of India (CCI) released a Report titled ‘Market Study on E-commerce in India: Key Findings and Observations’ today, available at: https://www.cci.gov.in/sites/default/files/whats_newdocument/Market-study-on-e-Commerce-in-India.pdf.

The Market Study on E-commerce in India (‘the study’) was initiated by the CCI in April 2019 with a view to better understand the functioning of e-commerce in India and its implications for markets and competition. The objective was also to identify impediments to competition, if any, emerging from e-commerce and to ascertain the Commission’s enforcement and advocacy priorities in light of the same.

The study, a combination of secondary research, questionnaire survey, focused group discussions, one-on-one meetings, a multi-stakeholder workshop and written submissions of stakeholders, covered the three broad categories of e-commerce in consumer goods (mobiles, lifestyle, electrical & electronic appliances and grocery), accommodation services and food services.  16 online platforms, 164 business entities [including sellers (manufacturers and retailers) and service providers (hotels and restaurants)] and 7 payment system providers from across India participated in the study. In addition, 11 industry associations, representing different stakeholder groups, also participated.

The study has helped gather useful insights and information on the key features of e-commerce in India, the different business models of e-commerce players, and the various aspects of commercial arrangements between market participants involved in e-commerce. The study has also provided an opportunity to learn from business enterprises on how they are responding to the advent of digital trade and has helped gauge the key parameters of competition in digital commerce.

The study confirms that online commerce is gaining importance across the sectors studied. The share of online distribution and its relative importance vis-à-vis traditional channels varies significantly across products. This divergence constrains construction of a unified competition narrative and points to the need for product-specific assessment of market and competition dynamics. Online commerce, as the study shows, has increased price transparency and price competition. The search and compare functionalities of online platforms have lowered search cost for consumers and have provided them with a wide array of alternatives to choose from. For businesses, e-commerce has helped expand market participation by aiding innovative business models.

The report released today presents the key trends identified and also discusses the issues that may, directly or indirectly, have a bearing on competition, or may hinder realisation of the full pro-competitive potential of e-commerce. These include the issues of lack of platform neutrality, unfair platform-to-business contract terms, exclusive contracts between online marketplace platforms and sellers/service providers, platform price parity restrictions and deep discounts. The CCI is of the view that many of these issues would lend themselves to a case-by-case examination by the CCI under the relevant provisions of the Competition Act, 2002. The report outlines these issues and presents the observations of the CCI on the same without assessing whether a conduct is anti-competitive or is justified in a particular context.

On the basis of the market study findings, the enforcement and advocacy priorities for the CCI in the e-commerce sector in India are, inter alia, the following:

1. Ensuring competition on the merits to harness efficiencies for consumers
2. Increasing transparency to create incentive for competition and to reduce information asymmetry
3. Fostering sustainable business relationships between all stakeholders

The insights gained from the study will inform antitrust enforcement in these markets. Nonetheless, bargaining power imbalance and information asymmetry between e-commerce marketplace platforms and their business users are at the core of many issues that have come up in the market study. Thus, without a formal determination of violation of competition law, improving transparency over certain areas of the platforms’ functioning can reduce information asymmetry and can have a positive influence on competition outcomes.

In view of the foregoing, the report enumerates certain areas for self-regulation by the e-commerce marketplace platforms. These have been advocated with a view to reduce information asymmetry and promote competition on the merits. The CCI under its advocacy mandate urges the e-commerce platforms to put in place the following transparency measures.

Search ranking

1. Set out in the platforms’ terms and conditions a general description of the main search ranking parameters, drafted in plain and intelligible language and keep that description up to date.
2. Where the main parameters include the possibility to influence ranking against any direct or indirect remuneration paid by business users, set out a description of those possibilities and of the effects of such remuneration on ranking.
3. Introduction of the above-mentioned features, however, should not entail, disclosure of algorithms or any such information that may enable or facilitate manipulation of search results by third parties.

Collection, use and sharing of data

1. Set out a clear and transparent policy on data that is collected on the platform, the use of such data by the platform and also the potential and actual sharing of such data with third parties or related entities.

User review and rating mechanism

1. Adequate transparency over user review and rating mechanisms is necessary for ensuring information symmetry, which is a prerequisite for fair competition. Adequate transparency to be maintained in publishing and sharing user reviews and ratings with the business users. Reviews for only verified purchases to be published and mechanisms to be devised to prevent fraudulent reviews/ratings.

Revision in contract terms

1. Notify the business users concerned of any proposed changes in terms and conditions. The proposed changes not to be implemented before the expiry of a notice period, which is reasonable and proportionate to the nature and extent of the envisaged changes and to their consequences for the business user concerned.

Discount policy

1. Bring out clear and transparent policies on discounts, including inter alia the basis of discount rates funded by platforms for different products/suppliers and the implications of participation/non-participation in discount schemes.

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The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for an Agreement between Government of the Republic of India and Government of Mongolia on Cooperation in the Exploration and Uses of Outer Space for Peaceful and Civilian Purposes.

The Agreement was signed at New Delhi on 20 September 2019 during the state visit of the President of Mongolia to India.

Details:

•   This Agreement shall enable pursuing the following potential interest areas of cooperation such as, space science, technology and applications including remote sensing of the earth; satellite communication and satellite based navigation; Space science and planetary exploration; use of spacecraft and space systems and ground system; and application of space technology.

 

•    The Agreement would lead to set up a Joint Working Group, drawing members from DOS/ISRO and Communications and Information Technology Authority of the Government of Mongolia, which will further work out the plan of action including the time-frame and the means of implementing this Agreement.

 

Financial Implications:

The financial arrangements to cover expenses for the co-operative activities undertaken within the framework of this Agreement will be jointly decided by the respective Participants on a case-by-case basis subject to the availability of funds.

 

 

 

Benefits:

Cooperation with and the Government of Mongolia through this Agreement would lead to develop a joint activity in the field of application of space technologies for the benefit of humanity. Thus all sections and regions of the country will get benefited.

 

Implementation Strategy and Targets:

The signed Agreement would lead to concluding specific implementing Arrangement and setting up of Joint Working Group, to work out the plan of action including the time-frame and the means of implementing this Agreement.

 

Impact:

The signed Agreement will provide impetus to explore newer research activities and application possibilities in the field of remote sensing of the earth; satellite communication; satellite navigation; space science and exploration of outer space.

 

Background:

•    Department of Space (DOS) and the Mongolian Ministry of Infrastructure signed an ‘Agreement for cooperation in space science, technology and applications’ on January 15, 2004. Apart from training of Mongolian officials on space technology application, no major cooperative activities have been taken up. When our Embassy in Mongolia was contacted for reviving the cooperation, it is understood that Mongolian Ministry of Infrastructure is abolished and the space activities are presently handled by Communication and Information Technology Authority (CITA) of Mongolia.

 

•    Embassy has further mentioned that, b high level delegation from Mongolia is expected to visit India during September 2019 and space cooperation would be one of the agenda. Embassy requested ISRO to share a draft Agreement on space cooperation for further taking up with CITA. Accordingly, a draft Agreement for India-Mongolia Space cooperation was drafted and shared with

Embassy, with approval of Chairman, ISRO/ Secretary, DOS. Subsequently, Mongolian side has given its concurrence and both sides have arrived at workable version and proposed to sign the agreement during high level delegation visit from Mongolia.

 

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VRRK/SC

The Competition Commission of India (CCI) released a Report titled ‘Market Study on E-commerce in India: Key Findings and Observations’ today, available at: https://www.cci.gov.in/sites/default/files/whats_newdocument/Market-study-on-e-Commerce-in-India.pdf.

The Market Study on E-commerce in India (‘the study’) was initiated by the CCI in April 2019 with a view to better understand the functioning of e-commerce in India and its implications for markets and competition. The objective was also to identify impediments to competition, if any, emerging from e-commerce and to ascertain the Commission’s enforcement and advocacy priorities in light of the same.

The study, a combination of secondary research, questionnaire survey, focused group discussions, one-on-one meetings, a multi-stakeholder workshop and written submissions of stakeholders, covered the three broad categories of e-commerce in consumer goods (mobiles, lifestyle, electrical & electronic appliances and grocery), accommodation services and food services.  16 online platforms, 164 business entities [including sellers (manufacturers and retailers) and service providers (hotels and restaurants)] and 7 payment system providers from across India participated in the study. In addition, 11 industry associations, representing different stakeholder groups, also participated.

The study has helped gather useful insights and information on the key features of e-commerce in India, the different business models of e-commerce players, and the various aspects of commercial arrangements between market participants involved in e-commerce. The study has also provided an opportunity to learn from business enterprises on how they are responding to the advent of digital trade and has helped gauge the key parameters of competition in digital commerce.

The study confirms that online commerce is gaining importance across the sectors studied. The share of online distribution and its relative importance vis-à-vis traditional channels varies significantly across products. This divergence constrains construction of a unified competition narrative and points to the need for product-specific assessment of market and competition dynamics. Online commerce, as the study shows, has increased price transparency and price competition. The search and compare functionalities of online platforms have lowered search cost for consumers and have provided them with a wide array of alternatives to choose from. For businesses, e-commerce has helped expand market participation by aiding innovative business models.

The report released today presents the key trends identified and also discusses the issues that may, directly or indirectly, have a bearing on competition, or may hinder realisation of the full pro-competitive potential of e-commerce. These include the issues of lack of platform neutrality, unfair platform-to-business contract terms, exclusive contracts between online marketplace platforms and sellers/service providers, platform price parity restrictions and deep discounts. The CCI is of the view that many of these issues would lend themselves to a case-by-case examination by the CCI under the relevant provisions of the Competition Act, 2002. The report outlines these issues and presents the observations of the CCI on the same without assessing whether a conduct is anti-competitive or is justified in a particular context.

On the basis of the market study findings, the enforcement and advocacy priorities for the CCI in the e-commerce sector in India are, inter alia, the following:

1. Ensuring competition on the merits to harness efficiencies for consumers
2. Increasing transparency to create incentive for competition and to reduce information asymmetry
3. Fostering sustainable business relationships between all stakeholders

The insights gained from the study will inform antitrust enforcement in these markets. Nonetheless, bargaining power imbalance and information asymmetry between e-commerce marketplace platforms and their business users are at the core of many issues that have come up in the market study. Thus, without a formal determination of violation of competition law, improving transparency over certain areas of the platforms’ functioning can reduce information asymmetry and can have a positive influence on competition outcomes.

In view of the foregoing, the report enumerates certain areas for self-regulation by the e-commerce marketplace platforms. These have been advocated with a view to reduce information asymmetry and promote competition on the merits. The CCI under its advocacy mandate urges the e-commerce platforms to put in place the following transparency measures.

Search ranking

1. Set out in the platforms’ terms and conditions a general description of the main search ranking parameters, drafted in plain and intelligible language and keep that description up to date.
2. Where the main parameters include the possibility to influence ranking against any direct or indirect remuneration paid by business users, set out a description of those possibilities and of the effects of such remuneration on ranking.
3. Introduction of the above-mentioned features, however, should not entail, disclosure of algorithms or any such information that may enable or facilitate manipulation of search results by third parties.

Collection, use and sharing of data

1. Set out a clear and transparent policy on data that is collected on the platform, the use of such data by the platform and also the potential and actual sharing of such data with third parties or related entities.

User review and rating mechanism

1. Adequate transparency over user review and rating mechanisms is necessary for ensuring information symmetry, which is a prerequisite for fair competition. Adequate transparency to be maintained in publishing and sharing user reviews and ratings with the business users. Reviews for only verified purchases to be published and mechanisms to be devised to prevent fraudulent reviews/ratings.

Revision in contract terms

1. Notify the business users concerned of any proposed changes in terms and conditions. The proposed changes not to be implemented before the expiry of a notice period, which is reasonable and proportionate to the nature and extent of the envisaged changes and to their consequences for the business user concerned.

Discount policy

1. Bring out clear and transparent policies on discounts, including inter alia the basis of discount rates funded by platforms for different products/suppliers and the implications of participation/non-participation in discount schemes.

****

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approvalto confer the status of Institution of National Importance to the Institute of Teaching and Research in Ayurveda Jamnagar by conglomerating the cluster of Ayurveda Institutes at Gujarat Ayurveda University campus, Jamnagar , namely, (a) Institute for Post Graduate Teaching and Research in Ayurveda (b) Shri Gulabkunwerba Ayurveda Mahavidyalaya and (c) Institute of Ayurveda Pharmaceutical Sciences including Pharmacy Unit and to subsume the Maharshi Patanjali Institute for Yoga & Naturopathy Education & Research into the Department of Swasthvritta of the Institute of Teaching and Research in Ayurveda.

 

The Bill to that effect is to be introduced in the ensuing Session of Parliament to declare Institute of Teaching and Research in Ayurveda, Jamnagar as Institution of National Importance.

 

Considering the rapidly growing role of AYUSH Systems in addressing the Public Health challenges of India, conferring the status of National Importance will boost the role and importance of Ayurveda in Public Health. The strengthening of Ayurveda will reduce government expenditure on health as Ayurveda is cost-effective because of its preventive and curative approaches.

 

There is rising interest and demand for knowledge and services of Ayurveda all over the world. India is the country of origin of Ayurveda and the world is looking up to India to showcase state of art institutions providing international level education and training in Ayurveda. Elevation of the proposed Institute to the status of Institution of National Importance will provide it the autonomy to upgrade standard of Ayurveda education, frame various courses in Ayurveda as per national and international demand, adopt advanced evaluation methodology, etc. It will have the mandate to frame its own certification courses for deeper penetration of AYUSH across masses and will give the capacity to bring out the unrealized potential of Ayurveda for addressing the major public health challenges faced by the country. It will help the institute to develop tertiary care in Ayurveda and to secure inter-disciplinary collaborations to give a contemporary thrust to Ayurveda.

 

 

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The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi has given ‘in principle’ approval for strategic disinvestment of equity shareholding of Minerals & Metals Trading Corporation Limited (MMTC) (49.78%), National Mineral Development Corporation (NMDC) (10.10%), MECON (0.68%) and Bharat Heavy Electricals Ltd. (BHEL) (0.68%) and two Odisha State Government PSUs namely; Industrial Promotion and Investment Corporation of Odisha Ltd.(IPICOL) (12.00%) and Odisha Mining Corporation (OMC) (20.47%) in Neelachal Ispat Nigam Limited (NINL) to a strategic buyer, identified through a two-stage auction procedure. NINL is a Joint Venture company, in which four CPSEs namely MMTC, NMDC, BHEL and MECON and 2 State PSUs of Odisha Government, namely IPICOL and OMC are shareholders.

The proposed strategic disinvestment of NINL would unlock resources to be used to finance the social sector/developmental programmes of the Government benefiting the public. It is also expected that the successful strategic buyer may bring in new management/technology/investment for the growth of the company and may use innovative methods for the development of the business operations of the company, which may generate more employment opportunities.

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The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approvalto confer the status of Institution of National Importance to the Institute of Teaching and Research in Ayurveda Jamnagar by conglomerating the cluster of Ayurveda Institutes at Gujarat Ayurveda University campus, Jamnagar , namely, (a) Institute for Post Graduate Teaching and Research in Ayurveda (b) Shri Gulabkunwerba Ayurveda Mahavidyalaya and (c) Institute of Ayurveda Pharmaceutical Sciences including Pharmacy Unit and to subsume the Maharshi Patanjali Institute for Yoga & Naturopathy Education & Research into the Department of Swasthvritta of the Institute of Teaching and Research in Ayurveda.

 

The Bill to that effect is to be introduced in the ensuing Session of Parliament to declare Institute of Teaching and Research in Ayurveda, Jamnagar as Institution of National Importance.

 

Considering the rapidly growing role of AYUSH Systems in addressing the Public Health challenges of India, conferring the status of National Importance will boost the role and importance of Ayurveda in Public Health. The strengthening of Ayurveda will reduce government expenditure on health as Ayurveda is cost-effective because of its preventive and curative approaches.

 

There is rising interest and demand for knowledge and services of Ayurveda all over the world. India is the country of origin of Ayurveda and the world is looking up to India to showcase state of art institutions providing international level education and training in Ayurveda. Elevation of the proposed Institute to the status of Institution of National Importance will provide it the autonomy to upgrade standard of Ayurveda education, frame various courses in Ayurveda as per national and international demand, adopt advanced evaluation methodology, etc. It will have the mandate to frame its own certification courses for deeper penetration of AYUSH across masses and will give the capacity to bring out the unrealized potential of Ayurveda for addressing the major public health challenges faced by the country. It will help the institute to develop tertiary care in Ayurveda and to secure inter-disciplinary collaborations to give a contemporary thrust to Ayurveda.

 

 

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The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the ratification of Migration and Mobility Partnership Agreement between India and France. The Agreement was signed in March, 2018 during the State Visit of the French President to India.

The Agreement represents a major milestone in enhancing people-to-people contacts, fostering mobility of students, academics, researchers and skilled professionals and strengthening cooperation on issues related to irregular migration and human trafficking between the two sides. The Agreement is a testimony to India’s rapidly expanding multi-faceted relationship with France and symbolizes the increasing trust and confidence between the two sides.

The Agreement is initially valid for a period of seven years, incorporates provision for automatic renewal and a monitoring mechanism through a Joint Working Group.

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VRRK/SC

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its ex-post-facto approval on the Memorandum of Cooperation (MoC) between Department of Health & Family Welfare (DOHFW), Government of India and Bill & Melinda Gates Foundation (BMGF) on cooperation in the field of Health signed in November, 2019 during the visit of Mr. Bill Gates, Co-Chair and Trustee of BMGF to Delhi.

The Memorandum of Cooperation (MoC) covers the following areas of cooperation:-

a)     To reduce maternal, neonatal and child morbidity and mortality, improve key nutrition outcomes, by improving the reach, coverage and quality of essential primary health, immunization and nutrition services.

b)     To increase the basket of choice and quality for family planning methods, specially for reversible methods, and increase access amongst younger women.

c)     To reduce the burden of select infectious diseases [TB, Visceral Leishmaniasis (VL), Lymphatic Filariasis(LF)].

d)     To strengthen health systems, including aspects such as budget utilization, management and skills of human resources for health, digital health, strengthening supply chains and monitoring systems.

 

A Program Action Committee (PAC) will be set up to further elaborate the details of cooperation and to oversee the implementation of this Memorandum of Cooperation.

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VRRK/SC

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has been apprised of information about the amendments moved to the Motor Vehicles (Amendment) Bill, 2019 as passed by the Rajya Sabha.

Amendments will ensure concurrence of the State Governments while formulating National Transport Policy and making schemes for national, multimodal and inter-state transportation of goods and passengers by the Central Government.

Background

The Motor Vehicles (Amendment) Bill, 2019 was approved by the Cabinet in its meeting held on 24^th June, 2019 for re-introduction in the Lok Sabha. The Motor Vehicles (Amendment) Bill, 2019 was passed in the Lok Sabha on 23^rd July, 2019.  Later, the Bill was taken into consideration in Rajya Sabha on 31^st July, 2019.  The Bill with the official amendments was passed by the Rajya Sabha on 31^st July, 2019.  Further, the amendments were placed before the Lok Sabha and were passed in the Lok Sabha on 5^th August, 2019.

 

 

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The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has been apprised of the Agreement on cooperation in polar science between Ministry of Earth Sciences (MoES), India and Ministry of Education and Research, Sweden. The Memorandum of Understanding (MoU) was signed on 2^nd December 2019 during the visit of Their Majesties of the Kingdom of Sweden to India.

 

India and Sweden are both signatories to the Antarctic Treaty and to the Protocol to the Antarctic Treaty on Environmental Protection. Sweden as one of the eight “Arctic States” is one of the Member State in the Arctic Council whereas India has the Observer Status in the Arctic Council. Sweden has a vigorous scientific program in the Polar Regions, both in Arctic and Antarctic. India likewise, has sustained scientific research programs in both the Polar Regions as well as in the oceanic realm.

 

The collaboration between India and Sweden in polar science will enable sharing of the expertise available with both Countries.

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VRRK/SC

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for an Agreement between Government of the Republic of India and Government of Mongolia on Cooperation in the Exploration and Uses of Outer Space for Peaceful and Civilian Purposes.

The Agreement was signed at New Delhi on 20 September 2019 during the state visit of the President of Mongolia to India.

Details:

•   This Agreement shall enable pursuing the following potential interest areas of cooperation such as, space science, technology and applications including remote sensing of the earth; satellite communication and satellite based navigation; Space science and planetary exploration; use of spacecraft and space systems and ground system; and application of space technology.

 

•    The Agreement would lead to set up a Joint Working Group, drawing members from DOS/ISRO and Communications and Information Technology Authority of the Government of Mongolia, which will further work out the plan of action including the time-frame and the means of implementing this Agreement.

 

Financial Implications:

The financial arrangements to cover expenses for the co-operative activities undertaken within the framework of this Agreement will be jointly decided by the respective Participants on a case-by-case basis subject to the availability of funds.

 

 

 

Benefits:

Cooperation with and the Government of Mongolia through this Agreement would lead to develop a joint activity in the field of application of space technologies for the benefit of humanity. Thus all sections and regions of the country will get benefited.

 

Implementation Strategy and Targets:

The signed Agreement would lead to concluding specific implementing Arrangement and setting up of Joint Working Group, to work out the plan of action including the time-frame and the means of implementing this Agreement.

 

Impact:

The signed Agreement will provide impetus to explore newer research activities and application possibilities in the field of remote sensing of the earth; satellite communication; satellite navigation; space science and exploration of outer space.

 

Background:

•    Department of Space (DOS) and the Mongolian Ministry of Infrastructure signed an ‘Agreement for cooperation in space science, technology and applications’ on January 15, 2004. Apart from training of Mongolian officials on space technology application, no major cooperative activities have been taken up. When our Embassy in Mongolia was contacted for reviving the cooperation, it is understood that Mongolian Ministry of Infrastructure is abolished and the space activities are presently handled by Communication and Information Technology Authority (CITA) of Mongolia.

 

•    Embassy has further mentioned that, b high level delegation from Mongolia is expected to visit India during September 2019 and space cooperation would be one of the agenda. Embassy requested ISRO to share a draft Agreement on space cooperation for further taking up with CITA. Accordingly, a draft Agreement for India-Mongolia Space cooperation was drafted and shared with

Embassy, with approval of Chairman, ISRO/ Secretary, DOS. Subsequently, Mongolian side has given its concurrence and both sides have arrived at workable version and proposed to sign the agreement during high level delegation visit from Mongolia.

 

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The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation has released the First Advance Estimates of National Income at both Constant (2011-12) and Current Prices, for the financial year 2019-20 along with the corresponding estimates of expenditure components of the Gross Domestic Product (GDP).

 

2.         The First Advance Estimates of GDP have been released in accordance with the release calendar of National Accounts. The approach for compiling the Advance Estimates is based on Benchmark-Indicator method. The sector-wise Estimates are obtained by extrapolation of  indicators like (i) Index of Industrial Production (IIP) of first 7 months of the financial year, (ii) financial performance of Listed Companies in the Private Corporate sector available upto quarter ending September, 2019 (iii) 1^st Advance Estimates of Crop production, (iv) accounts of  Central & State Governments, information on indicators like Deposits & Credits, Passenger and Freight earnings of Railways, Passengers and Cargo handled by Civil Aviation, Cargo handled at major Sea Ports, Sales of Commercial Vehicles, etc., available for first 8 months of the financial year. With the introduction of Goods and Services Tax (GST) from 1^st July 2017 and consequent changes in the tax structure, the total Tax Revenue used for GDP compilation include non-GST revenue and GST revenue. For the year 2019-20, the Budget Estimates of Tax Revenue as provided by Controller General of Accounts (CGA) have been used for estimating taxes on products at Current Prices.  For compiling taxes on products at Constant Prices, volume extrapolation is done using volume growth of taxed goods and services and aggregated to get the total volume of taxes. Annual forecast of indicators which are available for first 7 / 8 months is based on Regression using seasonal dummies to account for seasonal fluctuations or some indicators like IIP have been compiled by dividing the cumulative value for the first 7 months of the current financial year by average of ratio of cumulative value of 7 months to the annual value of past years. The salient features of the Estimates are detailed below:

 

1. ESTIMATES AT CONSTANT (2011-12) PRICES

Gross Domestic Product

3.        Real GDP or GDP at Constant Prices (2011-12) in the year 2019-20 is likely to attain a level of ₹147.79 lakh crore, as against the Provisional Estimate of GDP for the year 2018-19 of ₹140.78 lakh crore, released on 31^st May 2019. The growth in real GDP during 2019-20 is estimated at 5.0 per cent as compared to the growth rate of 6.8 per cent in 2018-19.

 

Gross Value Added (GVA) at Basic Prices

4.         Real GVA at Basic Prices is estimated to increase from ₹129.07 lakh crore in 2018-19 to ₹135.40 lakh crore in 2019-20. Estimated growth of real GVA in 2019-20 is 4.9 per cent as against 6.6 per cent in 2018-19.

5.         The sectors which registered growth rate of over 4.9 percent are, ‘Electricity, Gas, Water Supply and Other Utility Services’, ‘Trade, Hotels, Transport, Communication and Services related to Broadcasting’, ‘Financial, Real Estate and Professional Services’ and ‘Public Administration, Defence and Other Services’ at 5.4 per cent, 5.9 per cent, 6.4 per cent, 9.1 per cent respectively. The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Manufacturing’ and ‘Construction’ is estimated to be 2.8 per cent, 1.5 per cent, 2.0 per cent and 3.2 per cent respectively.

 

Agriculture, Forestry and Fishing

6.         GVA at Basic Prices for 2019-20 from ‘Agriculture, Forestry and Fishing’ sector is estimated to grow by 2.8 per cent as compared to growth of 2.9 per cent in 2018-19. The GVA estimates of this sector are based on 1^st advance estimates of agricultural production during Kharif season of 2019-20 obtained from the Ministry of Agriculture & Farmer Welfare. For Livestock sector, estimates of production of major livestock products (i.e. Milk, Egg, Meat and Wool) obtained from the Department of Animal Husbandry & Dairying and Fish production data obtained from Department of Fisheries have been used. The crops including fruits and vegetables account for about 56 per cent, the livestock products 30 per cent and forestry & fisheries 14 per cent share of GVA in total GVA of ‘Agriculture, Forestry and Fishing’ sector.

 

Mining and Quarrying

7.         GVA at Basic Prices for 2019-20 from ‘Mining and Quarrying’ sector is estimated to grow by 1.5 per cent as compared to growth of 1.3 per cent in 2018-19. The key indicators of Mining sector, namely, production of Coal, Crude Oil and Natural Gas registered growth rates of (-) 5.3 per cent, (-) 5.9 per cent and (-) 2.6 per cent, during April-November, 2019-20 as compared to 9.0 per cent, (-) 3.6 per cent and (-) 0.7 per cent respectively, during April-November, 2018-19. IIP of metallic minerals grew at 13.7 per cent during April-October, 2019-20  as compared to 2.6 per cent during same period in 2018-19.

 

Manufacturing

8.         GVA at Basic Prices for 2019-20 from ‘Manufacturing’ sector is estimated to grow by 2.0 per cent as compared to growth of 6.9 per cent in 2018-19.  The Private Corporate sector growth in the Manufacturing sector for 2019-20 is estimated using latest available information on major Listed Companies during first half of financial year 2019-20. The Private Corporate sector growth (which has a share of over 75 per cent in the Manufacturing sector) was estimated from available data of Listed Companies with BSE and NSE. The Quasi – Corporate and Unorganized segment (which has a share of over 20 per cent in the Manufacturing sector) has been estimated using IIP of Manufacturing which registered a growth of 0.6 per cent during April-October, 2019-20.

 

Electricity, Gas, Water Supply and Other Utility Services

9.         GVA at Basic Prices for 2019-20 from ‘Electricity, Gas, Water Supply and Other Utility Services’ sector is expected to grow by 5.4 per cent as compared to growth of 7.0 per cent in 2018-19. Estimate of IIP of Electricity compiled for 2019-20 has been used for compilation.  IIP of Electricity registered a growth rate of 1.6 per cent during April-October, 2019-20.

 

Construction

10.      GVA at Basic Prices for 2019-20 from ‘Construction’ sector is expected to grow by 3.2 per cent as compared to growth of 8.7 per cent in 2018-19. Key indicators of Construction sector, namely, Production of Cement and Consumption of Finished Steel registered growth rates of (-) 0.02 per cent and 3.5 per cent respectively during April-November, 2019-20.

 

 

Trade, Hotels and Transport & Communication and Services related to Broadcasting

11.                            The estimated growth in GVA for the Trade, Hotels, Transport and Communication and Services related to Broadcasting services during 2019-20 is placed at 5.9 per cent as against growth of 6.9 per cent in the previous year. GVA from Trade sector is estimated using an index of turnover based on Sales Tax. With introduction of GST, Sales Tax data is now subsumed under GST.  Therefore, a comparable estimate of turnover based on Sales Tax has been estimated. Methodology of estimation is as explained in the Annexure to the Press Note on estimates of GDP for the second quarter (July-September) of 2017-18 released on 30^th November, 2017. The key indicators of Railways, namely, the Net Tonne Kilometres and Passenger Kilometres have shown growth rate of (-)4.1 per cent and (-)0.9 per cent respectively during April-November, 2019-20. Among the other transport service sectors, Cargo handled at major Sea Ports, Cargo handled by the Civil Aviation, Passengers handled by the Civil Aviation and Sales of Commercial Vehicles registered a growth of 0.2 per cent, (-)7.9 per cent, 1.8 per cent and (-) 22.1 per cent respectively during April-November, 2019-20.

 

Financial, Real Estate and Professional Services

12.       The estimated growth in GVA for this sector during 2019-20 is placed at 6.4 per cent as compared to growth of 7.4 per cent in 2018-19.  Major component of this industry is the Real Estate and Professional Services which has a share of over 75 per cent. The key indicators of this sector are the growth of Corporate Sector for Real Estate sector and Computer related activities which are estimated using latest available information on Listed Companies for the first half of financial year 2019-20. Aggregate Bank Deposits and Bank Credits have shown growth rates of 10.3 per cent and 8.9 per cent respectively as on October, 2019.

 

Public Administration and Defence and Other Services

13.       GVA at Basic Prices for 2019-20 from this sector is expected to grow by 9.1 per cent as compared to growth of 8.6 per cent in 2018-19. The key indicator of this sector namely, Union Government Expenditure Net of Interest Payments grew by 17.8 per cent during April-November, 2019-20.

 

Per Capita Income

14.       The Per Capita Income in real terms (at 2011-12 prices) during 2019-20 is likely to attain a level of ₹96,563 as compared to ₹92,565 for the year 2018-19. The growth rate in Per Capita Income is estimated at 4.3 per cent during 2019-20, as against 5.6 per cent in the previous year.

 

B.      ESTIMATES AT CURRENT PRICES

 

15.     Price Indices used as Deflators

The Wholesale Price Index (WPI), in respect of the groups – Food Articles, Manufactured Products, Electricity and all Commodities, has risen by 8.0 per cent, 0.3 per cent, (-) 0.3 per cent and 1.4 per cent, respectively during April-November, 2019-20. The Consumer Price Index (CPI) has shown a rise of 3.7 per cent during April-November, 2019-20.

 

Gross Domestic Product

16.       GDP is derived by adding Taxes on Products net of Subsidies on Products to GVA at Basic Prices. GDP at Current Prices in the year 2019-20 is likely to attain a level of ₹204.42 lakh crore, as against ₹190.10 lakh crore in 2018-19 showing a growth rate of 7.5 per cent.

 

National Income

17.       The nominal Net National Income (NNI), also known as National Income (at Current Prices) is likely to be ₹181.10 lakh crore during 2019-20, as against ₹168.37 lakh crore for the year 2018-19. In terms of growth rates, the National Income registered a growth rate of 7.6 per cent in 2019-20 as against the previous year’s growth rate of 11.3 per cent.

 

Per Capita Income

18.       The Per Capita Net National Income during 2019-20 is estimated to be ₹1,35,050 showing a rise of 6.8 per cent as compared to ₹1,26,406 during 2018-19 with the growth rate of 10.0 per cent.

 

C. ANNUAL ESTIMATES OF FINAL EXPENDITURES OF GDP, 2019-20

19.       Along with the First Advance Estimates of GVA at Basic Prices by economic activity, the First Advance Estimates of Expenditures of the GDP at Current and Constant (2011-12) Prices are also released. These estimates have been compiled using the data from the same sources as those used for compiling GVA estimates by economic activity, detailed data available on Merchandise Trade in respect of Imports and Exports, Balance of Payments, and Expenditure of Central and State Governments.  As various components of Expenditure on Gross Domestic Product, namely, Consumption Expenditure and Capital Formation, are normally measured at Market Prices, the discussion in the following paragraphs is in terms of Market Prices only.

 

Private Final Consumption Expenditure

20.       Private Final Consumption Expenditure (PFCE) at Current Prices is estimated at ₹123.07 lakh crore in 2019-20 as against ₹112.90 lakh crore in 2018-19. At Constant (2011-12) Prices, the PFCE is estimated at ₹84.81 lakh crore in 2019-20 as against ₹80.17 lakh crore in 2018-19. In terms of GDP, the rates of PFCE at Current and Constant (2011-12) Prices during 2019-20 are estimated at 60.2 per cent and 57.4 per cent, respectively, as against the corresponding rates of 59.4 per cent and 56.9 per cent, respectively in 2018-19.

 

Government Final Consumption Expenditure

21.       Government Final Consumption Expenditure (GFCE) at Current Prices is estimated at ₹24.34 lakh crore in 2019-20 as against ₹21.35 lakh crore in 2018-19. At Constant (2011-12) Prices, the GFCE is estimated at ₹16.65 lakh crore in 2019-20 as against ₹15.06 lakh crore in 2018-19. In terms of GDP, the rates of GFCE at current and constant (2011-12) prices during 2019-20  are estimated at 11.9 per cent and 11.3 per cent, respectively, as against the corresponding rates of 11.2 per cent and 10.7 per cent, respectively in 2018-19.

 

Gross Fixed Capital Formation

22.       Gross Fixed Capital Formation (GFCF) at Current Prices is estimated at ₹57.42 lakh crore in 2019-20 as against ₹55.70 lakh crore in 2018-19. At Constant (2011-12) Prices, the GFCF is estimated at ₹45.93 lakh crore in 2019-20 as against ₹45.48 lakh crore in 2018-19. In terms of GDP, the rates of GFCF at Current and Constant (2011-12) prices during 2019-20 are estimated at 28.1 per cent and 31.1 per cent, respectively, as against the corresponding rates of 29.3 per cent and 32.3 per cent, respectively in 2018-19.

 

23.       Estimates of Gross/Net National Income and Per Capita Income along with GVA at Basic Prices by kind of economic activity and the Expenditures of GDP for the years 2017-18, 2018-19 and 2019-20 at Constant (2011-12) and Current Prices are given in Statements 1 to 4.

 

24.       The release of Second Advance Estimates of National Income for the year 2019-20 and quarterly GDP estimate for the third quarter (October-December), 2019-20 (Q3 of 2019-20) will be on 28.02.2020.

 

STATEMENT 1: First Advance Estimates of National Income and Expenditures on GDP, 2019-20
( At 2011- 12 Prices)					(₹ crore)
( S. No	Item		2017-18		2018-19			2019-20			Percentage change over previous year
					(PE)			(1st  AE)			2018-19		2019-20
	Domestic Product
1	GVA at Basic Prices		12,104,165		12,906,936			13,540,380			6.6	4.9
2	Net Taxes on Products		1,075,693		1,170,650			1,238,499			8.8	5.8
3	GDP (1+2)		13,179,857		14,077,586			14,778,879			6.8	5.0
4	NDP		11,676,896		12,474,945			13,097,584			6.8	5.0
	Final Expenditures
5	PFCE		7,417,489		8,016,674			8,480,699
6	GFCE		1,378,563		1,506,035			1,664,514
7	GFCF		4,136,572		4,548,452			4,592,664
8	CIS		150,417		157,637			161,225
9	VALUABLES		192,120		174,780			198,356
10	Exports of Goods and Services		2,607,310		2,933,969			2,874,795
11	Imports of Goods and Services		3,083,560		3,557,901			3,347,131
12	Discrepancies		380,947		297,939			153,756
13	GDP		13,179,857		14,077,586			14,778,879
	RATES TO GDP
14	PFCE		56.3		56.9			57.4
15	GFCE		10.5		10.7			11.3
16	GFCF		31.4		32.3			31.1
17	CIS		1.1		1.1			1.1
18	VALUABLES		1.5		1.2			1.3
19	Exports of Goods and Services		19.8		20.8			19.5
20	Imports of Goods and Services		23.4		25.3			22.6
21	Discrepancies		2.9		2.1			1.0
22	GDP		100.0		100.0			100.0
	NATIONAL PRODUCT
23	GNI		13,034,121		13,932,287			14,630,421			6.9	5.0
24	NNI		11,531,159		12,329,646			12,949,125			6.9	5.0
Per Capita Income, Product and Final Consumption
25	Population* (in million)		1316			1332			1341
26	Per Capita GDP (₹)		100,151			105,688			110,208		5.5	4.3
27	Per Capita GNI (₹)		99,043			104,597			109,101		5.6	4.3
28	Per Capita NNI (₹)		87,623			92,565			96,563		5.6	4.3
29	Per Capita PFCE (₹)		56,364			60,185			63,242		6.8	5.1
* Relates to mid-financial year

PE: Provisional Estimates; AE: Advance Estimates

 

STATEMENT 2: First Advance Estimates of National Income and Expenditures on GDP, 2019-20
	( At Current Prices)			(₹ crore)
S.No	Item	2017-18		2018-19			2019-20	Percentage change over previous year
				(PE)			(1st AE)	2018-19		2019-20
	Domestic Product
1	GVA at Basic Prices	15,482,715		17,199,815			18,502,193	11.1	7.6
2	Net Taxes on Products	1,612,290		1,810,349			1,940,040	12.3	7.2
3	GDP (1+2)	17,095,005		19,010,164			20,442,233	11.2	7.5
4	NDP	15,313,286		17,030,846			18,313,040	11.2	7.5
	Final Expenditures
5	PFCE	10,083,121		11,290,029			12,307,193
6	GFCE	1,885,613		2,134,615			2,434,175
7	GFCF	4,896,813		5,569,998			5,742,431
8	CIS	173,890		187,671			197,966
9	VALUABLES	218,706		193,992			217,077
10	Exports of Goods and Services	3,210,547		3,752,230			3,771,459
11	Imports of Goods and Services	3,758,519		4,493,933			4,338,020
12	Discrepancies	384,835		375,562			109,953
13	GDP	17,095,005		19,010,164			20,442,233
	RATES TO GDP
14	PFCE	59.0		59.4			60.2
15	GFCE	11.0		11.2			11.9
16	GFCF	28.6		29.3			28.1
17	CIS	1.0		1.0			1.0
18	VALUABLES	1.3		1.0			1.1
19	Exports of Goods and Services	18.8		19.7			18.4
20	Imports of Goods and Services	22.0		23.6			21.2
21	Discrepancies	2.3		2.0			0.5
22	GDP	100.0		100.0			100.0
	NATIONAL PRODUCT
23	GNI	16,910,192		18,816,538			20,239,374	11.3	7.6
24	NNI	15,128,474		16,837,219			18,110,180	11.3	7.6
25	GNDI	17,315,933		19,237,943			20,668,980	11.1	7.4
26	NNDI	15,534,214		17,258,624			18,539,786	11.1	7.4
Per Capita Income, Product and Final Consumption
27	Per Capita GDP(₹)	129,901			142,719	152,440		9.9	6.8
28	Per Capita GNI (₹)	128,497			141,265	150,927		9.9	6.8
29	Per Capita NNI (₹)	114,958			126,406	135,050		10.0	6.8
30	Per Capita GNDI (₹)	131,580			144,429	154,131		9.8	6.7
31	Per Capita PFCE (₹)	76,619			84,760	91,776		10.6	8.3

PE: Provisional Estimates; AE: Advance Estimates

 

 

 

 

STATEMENT 3: First Advance Estimates of GVA at Basic Prices by Economic Activity
(At 2011-12 Prices)
(₹ crore)
Industry	2017-18	2018-19 (PE)	2019-20 ( 1st AE)	Percentage change over previous year
				2018-19	2019-20
1. Agriculture, Forestry & Fishing	1,803,039	1,855,632	1,907,605	2.9	2.8
2. Mining & Quarrying	365,677	370,564	376,119	1.3	1.5
3. Manufacturing	2,176,923	2,328,040	2,374,176	6.9	2.0
4. Electricity, Gas, Water Supply & other Utility Services	267,720	286,427	301,966	7.0	5.4
5. Construction	969,194	1,053,901	1,087,210	8.7	3.2
6. Trade, Hotels, Transport, Communication and Services related to Broadcasting	2,312,214	2,471,128	2,616,095	6.9	5.9
7.  Financial,  Real Estate  &  Professional  Services	2,649,146	2,846,393	3,027,407	7.4	6.4
8.  Public Administration, Defence  and other Services	1,560,252	1,694,851	1,849,803	8.6	9.1
GVA  at  Basic Prices	12,104,165	12,906,936	13,540,380	6.6	4.9

 

 

PE: Provisional Estimates; AE: Advance Estimates         STATEMENT 4:  First Advance Estimates of GVA at Basic Prices by Economic Activity
(At Current Prices)
(₹ crore)
Industry	2017-18	2018-19 (PE)	2019-20 ( 1st AE)	Percentage change over previous year
				2018-19	2019-20
1. Agriculture, Forestry & Fishing	2,670,147	2,775,852	3,047,187	4.0	9.8
2. Mining & Quarrying	351,058	410,151	403,436	16.8	-1.6
3. Manufacturing	2,542,089	2,818,218	2,882,958	10.9	2.3
4. Electricity, Gas, Water Supply & other Utility Services	423,089	479,871	502,917	13.4	4.8
5. Construction	1,213,628	1,376,293	1,439,892	13.4	4.6
6. Trade, Hotels, Transport, Communication and Services related to Broadcasting	2,823,263	3,151,709	3,391,278	11.6	7.6
7.  Financial,  Real Estate  &  Professional  Services	3,252,789	3,666,326	3,944,979	12.7	7.6
8.  Public Administration, Defence  and other Services	2,206,652	2,521,395	2,889,546	14.3	14.6
GVA at Basic Prices	15,482,715	17,199,815	18,502,193	11.1	7.6

 

PE: Provisional Estimates; AE: Advance Estimates

 

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*****

VRRK/AK

 

The Vice President of India, Shri M. Venkaiah Naidu today called upon the scientific community to find long-term solutions to the problems faced by farmers and improve crop productivity and farmers’ income. He also wanted scientists to explore ways to make crops climate-resilient, nutrition-efficient and less water consuming.

He was delivering the Valedictory address at the 107th Indian Science Congress at the University of Agricultural Sciences, Bengaluru. The Chief Minister of Karnataka, Shri B.S. Yediyurappa, the General President, Indian Science Congress Association, Prof. K.S. Rangappa, the Vice-Chancellor of University of Agricultural Sciences, Bengaluru, Dr. S. Rajendra Prasad and other dignitaries were present on the occasion.

The Vice President said that global warming and climate change were affecting the weather patterns in an unpredictable manner and causing massive devastation at times. He sought to know from the scientists whether the problems faced by farmers due to nature’s fury could be mitigated.

Calling for concerted efforts, Shri Naidu emphasized upon the critical role of technology in enhancing both the quality and quantity across the agriculture value chain from the use of inputs at the pre-production stage to post-production and marketing to improve the income of farmers.

The Vice President, while noting how technology was making our lives more comfortable, said that at the same time new challenges were arising. He said science must find solutions to problems like increasing urbanization, pollution, urban-rural divide, growing antibacterial resistance, genetic & non-communicable diseases and water scarcity, among others.

Urging schools to lay the foundation for the spread of a strong scientific culture in the country, he stressed that such a foundation would become the basis for creating an ecosystem for creativity and innovation to thrive.

“The need of the hour is to foster the spirit of inquisitiveness, curiosity and scientific temper right from the primary school level”, he said.

Observing that there was a crying need for our universities and scientific institutions to promote R & D on a big scale, the Vice President called for expanding the academia-industry linkage to promote research and innovation in a big way. Technological innovation was a key driver in boosting economy, improving people’s lives and enabling better delivery of services he added.

“India like no other country has a huge demographic dividend and can emerge as the innovation and knowledge if our universities and scientific institutions invest more on R & D and significantly the raise the standards of research”, Shri Naidu stressed.

The Vice President also urged the corporate India to develop a symbiotic partnership with the universities and to identify and fund a dozen futuristic projects.

Opining that India was surging forward with renewed vigour and enthusiasm, the Vice President said that it must leverage the demographic opportunity with science and technology playing a leading role in driving the economic and social development in order to make the country a $ 5 trillion economy.

Shri Naidu lauded the government initiatives such as Make in India, Digital India and Start-Up India that promote indigenous manufacturing, empower people digitally and wealth-creation through innovation. He wanted senior scientists to mentor and hand-hold the young ones to benefit from such schemes and realize their scientific and entrepreneurial potential.

While addressing the gathering, the Chief Minister of Karnataka, Shri B.S. Yediyurappa said that the farming community must be given utmost priority in scientific innovations so that farmers will get benefitted. He urged the scientific community to include social angle in their science research. He congratulated the University for Agricultural Research, Bengaluru for successfully conducting the mega science event.

The Vice President presented the Indian Science Congress Association (ISCA) Awards, Young Scientist Awards and Best Poster Awards to the winners on this occasion.

 

***

BN/BK

The Vice President of India, Shri M. Venkaiah Naidu today called upon the scientific community to find long-term solutions to the problems faced by farmers and improve crop productivity and farmers’ income. He also wanted scientists to explore ways to make crops climate-resilient, nutrition-efficient and less water consuming.

He was delivering the Valedictory address at the 107th Indian Science Congress at the University of Agricultural Sciences, Bengaluru. The Chief Minister of Karnataka, Shri B.S. Yediyurappa, the General President, Indian Science Congress Association, Prof. K.S. Rangappa, the Vice-Chancellor of University of Agricultural Sciences, Bengaluru, Dr. S. Rajendra Prasad and other dignitaries were present on the occasion.

The Vice President said that global warming and climate change were affecting the weather patterns in an unpredictable manner and causing massive devastation at times. He sought to know from the scientists whether the problems faced by farmers due to nature’s fury could be mitigated.

Calling for concerted efforts, Shri Naidu emphasized upon the critical role of technology in enhancing both the quality and quantity across the agriculture value chain from the use of inputs at the pre-production stage to post-production and marketing to improve the income of farmers.

The Vice President, while noting how technology was making our lives more comfortable, said that at the same time new challenges were arising. He said science must find solutions to problems like increasing urbanization, pollution, urban-rural divide, growing antibacterial resistance, genetic & non-communicable diseases and water scarcity, among others.

Urging schools to lay the foundation for the spread of a strong scientific culture in the country, he stressed that such a foundation would become the basis for creating an ecosystem for creativity and innovation to thrive.

“The need of the hour is to foster the spirit of inquisitiveness, curiosity and scientific temper right from the primary school level”, he said.

Observing that there was a crying need for our universities and scientific institutions to promote R & D on a big scale, the Vice President called for expanding the academia-industry linkage to promote research and innovation in a big way. Technological innovation was a key driver in boosting economy, improving people’s lives and enabling better delivery of services he added.

“India like no other country has a huge demographic dividend and can emerge as the innovation and knowledge if our universities and scientific institutions invest more on R & D and significantly the raise the standards of research”, Shri Naidu stressed.

The Vice President also urged the corporate India to develop a symbiotic partnership with the universities and to identify and fund a dozen futuristic projects.

Opining that India was surging forward with renewed vigour and enthusiasm, the Vice President said that it must leverage the demographic opportunity with science and technology playing a leading role in driving the economic and social development in order to make the country a $ 5 trillion economy.

Shri Naidu lauded the government initiatives such as Make in India, Digital India and Start-Up India that promote indigenous manufacturing, empower people digitally and wealth-creation through innovation. He wanted senior scientists to mentor and hand-hold the young ones to benefit from such schemes and realize their scientific and entrepreneurial potential.

While addressing the gathering, the Chief Minister of Karnataka, Shri B.S. Yediyurappa said that the farming community must be given utmost priority in scientific innovations so that farmers will get benefitted. He urged the scientific community to include social angle in their science research. He congratulated the University for Agricultural Research, Bengaluru for successfully conducting the mega science event.

The Vice President presented the Indian Science Congress Association (ISCA) Awards, Young Scientist Awards and Best Poster Awards to the winners on this occasion.

 

***

A special drive has been initiated for removal of all sorts of speed breakers on National Highways. The step comes in a bid to ensure smooth and hassle-free traffic movement, especially at toll plazas. With the effective implementation of FASTag on toll plazas and conversion of cash toll lanes to FASTag lanes, the speed breakers/ rumble strips constructed at toll plazas are being removed with immediate effect for smooth vehicular movement.

Roads of different categories and under different situations are designed for designated speeds at which vehicles can travel with convenience and safety.  At certain locations, control of speed becomes necessary to promote orderly traffic movement and improved safety.  Considering the fact that National Highways are designed to cater to high speed traffic without any hindrance, the drive to remove speed breakers from national highways under the jurisdiction of National Highway Authority of India (NHAI).

The speed breakers result in considerable delay, damage to the vehicles and significant discomfort to vehicle occupants and more fuel consumption due to acceleration and deceleration.  This initiative will save time, money and facilitate smooth vehicular movement especially to ambulances, elderly and unwell people commuting on National Highways. In the larger context, this will also ensure avoidable wastage of transportation fuel for which country is heavily import-dependent, and will also result in lesser pollution.

Electronic Toll Collection through FASTag has been implemented from 15^th December 2019 to provide commotion-free movement on highways.  Positive effects of ETC are being realized by the commuters on toll plazas.  Introduction of speed breakers-free highways is another step in commitment to provide safe, smooth and seamless journey to commuters on National Highways.

***