dfa-9-nov

Daily Financial News Analysis – 9th Nov’20 – Free PDF Download

 

Invest in India

  • Ravi Shankar Prasad: India has attracted a number of Apple’s vendors to invest in the country during the pandemic
  • Eight-nine companies from the Apple ecosystem have come to India
  • India wants globally competitive companies to come here
  • Global smartphone manufacturers had committed investments of close to $1.5 billion (₹ 1.13 lakh crore) in local production
  • This will result in smartphones worth $140 billion being exported in the next five years
  • India has come out with a very robust data protection law after the widest consultation possible
  • He said the government was fine with data being stored outside India as long as it was done with the consent of the Indian people.
  • The minister said AI could contribute up to $500 billion (over ₹37 lakh crore) to India’s GDP by 2025 but emphasised that innovation in the field must supplement human mind and not “overtake” it, while being inclusive.
  • The Haryana government’s decision to reserve 75% of private sector jobs that pay less than ₹50,000/month

Haryana – Private Job Reservation

  • Haryana is thriving manufacturing and service sector hubs
  • This law by Haryana Govt can kill off industrial and economic growth
  • This reservation prevents industry from hiring best talent for a job vacancy
  • Companies will have to spend time and energy in verifying local claim
  • Further, the law calls for tedious compliance requirements and gives civil servants extraordinary discretionary powers to exempt a company’s hiring from the ‘vocal for local’ quota mandate.
  • Gurugram’s thriving IT and IT-enabled services industries are likely to migrate to Greater Noida or even Pune, if the law is enforced.
  • Quota for locals violates the spirit of the Constitution of India that seeks to build a unified nation out of the land’s extreme diversity.
  • It can spawn similar moves elsewhere, fragmenting the polity and the economy further.
  • The quota for locals violates Article 14’s guarantee of equality
  • Article 15’s guarantee against non-discrimination based on place of birth
  • Article 19’s guarantee of the right to work anywhere in the country
  • The Haryana government must withdraw the Bill.
  • If necessary, the governor must be advised by the President’s office to refer the Bill to the Centre.
  • If not, the Centre must advise the President to quash the Bill.

Supply-chain partnership

  • India, Japan and Australia are planning to widen the ambit of their proposed supply-chain partnership to include more like-minded countries in the Indo-Pacific region.
  • ASEAN countries would be good candidates to reach out to next for bolstering this partnership

  • The idea is to reduce the reliance on China for supply of goods and services.
  • The initiative, currently limited to the government-to-government level, will also involve industries as well as academia of these nations.
  • 10 key sectors: petroleum and petrochemicals, automobiles, steel, pharmaceuticals, textiles and garments, marine products, financial services, IT services, tourism and travel services, and skill development

Panel to review measures to boost investment

  • Empowered group of secretaries for investment (EGoS)
  • Chaired by Cabinet secretary Rajiv Gauba
  • To expand production linked incentive (PLI) scheme to more sectors to generate foreign and domestic investment
  • After PLI scheme was notified on April 1, ministry of electronics and information technology (MeitY) has approved 16 applications worth Rs 35,541 crore for electronics manufacturing in the country.
  • Under the scheme, an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, is planned for eligible companies, for a period of five years subsequent to the base year as defined.
  • In July this year, the Centre has also notified four production-linked incentive and pharmaceutical infrastructure schemes entailing a combined budgetary outgo of about Rs 12,000 crore over multiple years, including for domestic manufacturing of drug intermediates (DIs) and active pharmaceutical ingredients (APIs).
  • Under the scheme, financial incentive will be provided on sales of 41 identified products for six years.
  • After consultation with departments of revenue and expenditure, Niti Aayog has identified ten new sectors for extending the PLI scheme.
  • On June 3, with a view to support, facilitate and provide investor friendly ecosystem to those investing in India, the Union Cabinet has approved constitution of EGoS for investment.
  • Its objective is to bring synergies and ensure timely clearances from different departments and ministries;
  • To attract increased investments into India and provide investment support and facilitation to global investors
  • To facilitate investments of top investors in a targeted manner and to usher policy stability and consistency in the overall investment environment

 

 

 

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