Penny wise, pound (not so) foolish: Right decisions needed to cut import and boost exports

Last month the finance minister, Arun Jaitley announced measures to curb ‘non-essential imports,’ so that he can arrest the widening current account deficit (CAD) and probably also reverse the free fall of the value of Indian Currency – the Rupee. The moves look apt! But is it enough? Is it a case of “penny wise”?

With elections around the corner, any government would probably look for a quick fix. But are the 20 items where import duties were increased last week unfortunately not going to provide that quick fix? So, what is the solution? The Government should probably look for steps for a long-term solution. In a nutshell, the Government should look for increasing exports and lowering imports.

When it comes to imports, the biggest contributor is the energy sector (crude oil etc.). But, what is equally important is that, other mineral and metals weigh more when it comes to imports. And together (Crude/Energy, Mineral and Metal sector) contributes to 54% of India’s imports. (Table)

IMPORTS

	Commodity	Value ($ mn)	%age
1.	Mineral Fuels, oils & products	1,32,295	28.4
2	Precious Metals & articles thereof	74,710	16.1
3.	Iron & Steel and articles of iron & steel	14,637	3.1
4.	Ore, slag & ash	6,487	1.4
5.	Chemicals, Compounds of precious metals, rare earth etc.	6,038	1.3
6.	Aluminum & articles thereof	4,523	1.0
7.	Copper & article thereof	4,508	1.0
8.	Salt, sulphur, stone etc	2,511	0.5
9.	Lead, Zinc and Nickle & articles thereof	2,247	0.5
10.	Others (tin, base metals, misc. articles)	1,540	0.4
	Total	2,49,523	53.6

Source: Ministry of Commerce

Out of the total IMPORTS worth $4,65,578 million in the last fiscal year, the above 10 categories of commodities (imports worth $2,49,523 mn) had a corresponding EXPORTS worth $1,14,187 mn (out of total exports of $3,03,376 mn). Hence, these 10 categories left India with a trade imbalance of $1,35,336 (out of total trade imbalance of $1,62,202).

Let’s see how the above-mentioned commodities can help solve the issue of widening CAD and falling rupee to a great extent.

Oil & Gas sector

Domestic oil and gas production has been falling for straight 5 years now, obviously triggering more imports. In spite of arresting the trend, the government took some decisions, which have probably amplified the problem. For example, the new policy of allowing the extension of existing Production Sharing Contract (PSC) with 10% more share to the Government as profit, is a disincentive for petroleum.

With these deterrents, investment would obviously be difficult to come by, which would ultimately enhance domestic production and trim the $100 billion of IMPORT bill (22% of IMPORT). Similarly, the Government needs to push the enhanced oil recovery (EOR) policy with more incentive. EOR has a potential to substitute 10% of imports from domestic production.

Another aspect where domestic producers get a rough deal compared to imported crude is the 20% cess. This cess is not even a pass through compared to no cess for imported crude!

Apart from the above factors, bringing the entire petroleum sector under GST will work as the biggest incentive for the industry.

The steel and iron ore sector

This segment is the easiest one where things could be done easily (to help the Rupee and narrow CAD) but surprisingly nothing is done.

India’s 210 million tonnes production of iron ore is above the requirement of steel mills’ present capacity. However, imports are allowed and exports from states like Karnataka – where public sectors giant NMDC is the biggest producer – are not allowed.

Here, finance ministry can kill two birds with one stone.

1. Remove exports duty and allow export and hence earn foreign exchange.
2. Impose import duty (may be 30%) to discourage import and help lessen the widening CAD and also earn along with supporting the domestic producers.
3. Another aspect is Goa, from where the entire production used to be exported resulting into earning of foreign exchange. However, mining has come to standstill because of the interpretation of a Portuguese era law. The central Government needs to find a way to bring in changes in the retrograde – either through ordinance or by changing the relevant law whenever Parliament convenes next.

Zinc

Just like in the case of iron ore, despite India having an extra capacity (of 80,000 tonnes), India still imported 185,000 tonnes of refined ZINC (70% of it coming from Korea).

Here, the government just needs to give a little bit more push to the ongoing India-Korea CEPA (comprehensive economic partnership agreement). Imports duty should be imposed (under changed product specific rule or PSR for Zinc from chapter 79 to regional value content or RVC 35+CTH).

Copper

The Government can be the biggest beneficiary here in two ways. One way is through making the sector so attractive that the public sector miner Hindustan Copper Limited (HCL), which is in fund raising mode, gets a very good valuation. The second way is through earning forex by hiking import duty on refined copper from 5% at present to probably 7-8%.

Simultaneously, a 2% export incentive on copper cathode rods would do a great deal for HCL and help the Government push exports.

Apart from these, what the Government and probably the judiciary should also look into is the recent revelation about how vested interest parties (by bribing and other unfair means etc.) scripted the closure of the Tuticorin plant. The Government should look into early resolution and opening of the plant for the larger good.

Aluminum

China’s step to protecting its own economy is hurting India as the IMPORT of Aluminum scrap (HS code 7602) has suddenly gone up. Why can’t India (just like China) too hike import duty from the present 2.5% to 10%?  Similarly, on normal aluminum (HS code 7601) too import duty should be hiked from 7.5% to 10%. The import duty on downstream aluminum (HS code 7603-7616) should also be hiked.

                                                                        In Short

 Whether it is case of oil, gas, zinc, iron ore, copper or aluminum, all the steps stated above are “doable” without much hassle. And these steps will result in gains in terms of reduced imports worth $18.2 billion and enhance exports by 2.8 billion. So, the total gain for the economy would be worth $21 billion.

Along with the measures announced by the Government, if the steps stated above too are taken into account, India will gain in a big way in the next six months or so. Of course, additionally, India can also consider stricter restrictions on the IMPORT of Gold, Silver and Diamond (total imports of precious metals were $75 billion), so that domestic production can instead be encouraged.

source https://indiaoutbound.org/penny-wise-pound-not-so-foolish-right-decisions-needed-to-cut-import-and-boost-exports/

Firsthand account of an Indian National of working in International Development

This is a firsthand account of what a job in international development entails and what makes it meaningful, from someone with an experience of 27 years and still counting.

A career in international development is neither easy nor glamorous; and staying on the job is as hard as getting it. Although substantially lower than the private sector, the pay and benefits are sufficient to lead a comfortable life, and one really should not ask for more. However, the working hours can be incredibly long and stressful, and frustrations and despair high, particularly when you find that results are not immediate, external determinants and risks are high, and very little is under your full control. For example, you may support the primary education department in building very good primary schools, training teachers, improving curriculum and providing teaching-learning methods, but you can do very little when children drop out of school during the planting or harvest season, or during a natural disaster, and do not return to school thereafter. You may want to strengthen the health system, but then there may not be enough trained doctors and health workers available in the country. You may implement a child protection program, but you may have a socio-economic context where child marriages or female genital mutilation is a cultural norm and child labor is a means of household survival. You might send relief supplies to a refugee camp but find that rebels have captured and diverted the supplies midway. A branded speedboat carrying relief workers and materials that you have organized and sent suddenly disappears and then resurfaces in a rebel camp two months later, with no trace of the relief materials or the workers. Or, you are trying to contain and end an unprecedented epidemic knowing well that you might be its next victim and die in the next three days.

Difficult work and stay conditions (often away from the family), long hours of travel to extremely remote and difficult areas, and lack of basic amenities are hardships that are easy to live with, compared to the exposure to human suffering that international development workers often face. It can easily lead one to utter despair, and take a severe toll one one’s body and mind. This was the case with me during my work while responding to the unprecedented Ebola public health challenge in Sierra Leone.

At the onset of the Ebola outbreak, being an expatriate, my organization (Marie Stopes International-MSI) evacuated me to London to ensure my safety. Since I did not have a work permit for UK, I had to move to Accra (Ghana) after a month. Soon enough I realized that it was very difficult to function effectively as a country director from a remote location, and that my presence in Sierra Leone was desirable not only to plan and organize our work better, but also to manage risks and keep the staff inspired. So, I requested my head office that I be sent back to Sierra Leone, which my head office conceded, with the condition that I first undergo a special Ebola intensive Infection Prevention training program in Brussels.

In Brussels, our lead trainer’s opening lines were: “You are going to work in an unknown and extremely dangerous public health emergency, and in case you die from Ebola, please know that your body will not be sent back home, it will be wrapped up and buried immediately. You have voluntarily chosen to work in this area and this kind of work is meant for people who are into public health as a calling; in case you want be an ‘adventurer’, a ‘hero’ or a ‘martyr’, you should be elsewhere”.

At that time, I took it as a hard reality check. But as I recall this now, I feel a chill down my spine.

I got back to Sierra Leone at a time when the infections had begun to pick up rapidly. After my return, we set up and operated 12 Ebola Community Care Centers, trained hundreds of public health professionals in the government, and did extensive work in communities to raise awareness on community based infection prevention and behavior change, and undertook case identification, case transfer (to the care center), contact tracing and contact isolation.

I was a part of the large international team of organizations that effectively worked to end the Ebola epidemic, and prevent it from becoming a global pandemic. I was but a mere cog in one of the many wheels that were set in motion by many organizations, but I know that every cog was critical, particularly when the machinery was under pressures that it had not been subjected to before.

While it needed sheer grit, and nerves of steel to get through to the end, at the end of it, I was so exhausted physically and mentally that I had to take two weeks off to attend a recovery program at an ayurvedic treatment and yoga center back in India. And, it took me quite some time thereafter to fully recover mentally, not to mention that I still have the occasional nightmare where I see that I have contracted Ebola during the course of my work in Sierra Leone, some guys are preparing my grave, and that I will not see my loved ones ever again.

However, international development is not all about hardships, for if I found myself back in time, I would not do anything differently. The benefits of working in the development sector greatly outweigh the hardships. A career in international development comes with immense fiduciary responsibility and authority, where you are entrusted with spending millions of dollars (generally taxpayer’s money from developed countries), managing hundreds of staff and delivering results at scale – as a result, you are provided with unprecedented opportunities to change people’s lives for the better.

And there are other benefits as well – for example you get opportunities to travel the world, meet fascinating people, work with some great colleagues from different countries, work with and learn from local communities, understand different cultures, and at the end of it – get a sense of fulfilment in the knowledge that you have done your bit to help make the world a much better a place. As for me, in addition to all this, I am fortunate that I am able to make a living through something that is in sync with my values, and aligned with what I truly believe in. On the balance of things, the work in this sector comes with immense joy, profound satisfaction and a unique sense of purpose.

source https://indiaoutbound.org/firsthand-account-of-an-indian-national-of-working-in-international-development/

Indian Nationals Working in International Development (INWID): India’s understated Soft Power

With India’s rising influence in the international community, one of the important, but less spoken about aspects of its soft power is its contribution to international development, particularly through Indian nationals working overseas across various multilateral agencies (UN), international NGOs (INGOs), Foundations, consultancy firms, research bodies (Universities) and think tanks.

The accelerated rise of India in the last decade has strengthened its confidence, participation and contribution at the international level to influence trans-national governance, particularly with respect to its role in multilateral discourse and negotiations in development policy, trade and climate change. In terms of India’s role in global security, so far, India has contributed over 160,000 troops to 43 of 64 UN peacekeeping operations, and over 150 Indian armed and police forces personnel have laid down their lives while fighting for the UN’s blue flag.

Apart from holding prominent positions within the UN system, Indian nationals (both women and men) continue to hold important leadership positions overseas in leading INGOs such as Save the Children, CARE, World Vision, OXFAM, ActionAid, Family Health International, Mercy Corps, Danish Refugee Council, Medicine Sans Frontiers, International Rescue Committee, Marie Stopes International, EngenderHealth etc. to name a few. I have served as country director for leading INGOs in two Asian countries and two African countries, before returning to India to head the Asia regional office of another INGO that has its head office in the US.

The jobs or roles in the international development sector are rich and diverse, covering health and family planning, education, economic empowerment and livelihood, environment, infrastructure, systems strengthening, good governance, child rights and child protection, gender, human rights, legal reform, migration, emergency response and disaster relief, post disaster recovery and development, to name a few. There are also jobs in cross cutting support functions such as finance, compliance, research, Monitoring and Evaluation, quality assurance, audit, IT, supply and logistics etc. An analysis of staff profiles of some of the leading INGOs and UN agencies will show many Indians occupying key positions in all these areas.

So, what is special about INWID and why are they important for India?

Despite tough global competition and rigorous multi-stage recruitment processes, Indians are continuing to occupy numerous positions in international organizations, particularly in INGOs, multilateral bodies (including the UN) and global research agencies and foundations, and you will find them working in the most remote places in the world and under all possible conditions.

While INWIDs do not represent India officially, they represent certain well-recognized and acknowledged attributes that reflect upon India in a profound way. The predominant perception of INWIDs within their respective organizations and host countries is that they are highly educated, well trained, competent, well informed, hardworking, clear headed, analytical, articulate, innovative, and easy to get along. And my assessment comes from over 22 years of experience with International agencies (including 8 years with UKAID in India), 12 of which have been in overseas postings.

Because they are selected through a highly competitive global recruitment process, by default, INWIDs represent some of the best minds-and-hands that India has to offer to the rest of the world. INWIDs form a substantial part of the international pool of highly competent, passionate and courageous professionals dedicated to working on sustainable development by helping host governments, other national stakeholders and local populations build skills and resources to find sustainable solutions to the problems they face. They are making seminal contributions to policies, strategies and practices that aim to improve well-being in the socioeconomic realms in host countries, whether it is during peace or during conflicts and disasters. They may not represent India politically, but through their contribution and conduct, they represent India’s intellectual and human capital.

In more ways than one, INWIDs are essentially sharing much needed skills and capabilities from India to rest of the world, and are being increasingly recognized for their contribution to sustainable global development. Apart from the regular foreign exchange remittance they make in India, they are subtly but surely working as informal goodwill and intellectual ambassadors of India to rest of the world, and contributing to India’s soft power, in their own spontaneous, understated way.

The Government of India might want to engage with this community in the future, not only to support them in their role as informal goodwill ambassadors of India, but also as a source of knowledge, ideas and good practices from rest of the world, for India to access.

source https://indiaoutbound.org/indian-nationals-working-in-international-development-inwid-indias-understated-soft-power/

Digital North-East vision 2022: Prospects

The Digital North-East Vision 2022 was released in Guwahati, Assam in August this year.  This follows through on the Prime Minister Narendra Modi’s Digital India programme launched on July 1, 2015. The vision document essentially lays emphasis upon the need to leverage digital technologies to transform the lives of the people and facilitate ease of living in the North East of India. This translates into connecting remote villages with high-speed broadband facilities to increase people’s digital literacy, make governance easier and proliferate the availability of mobile healthcare (e-hospitals) in otherwise inaccessible locations.

With the underlying goal of digital inclusion and the motto to “reform, perform and transform,” the 8 key areas of focus include digital services, digital infrastructure, digital empowerment, digital payments, manufacturing, innovation, promotion of electronics and BPOs, cyber security and start-ups. Initiatives under these will boost existing research as well as broaden the scope of employment generation. Moreover, digitalization will also immensely benefit the tourism industry.

Under Digital North East, the Central government plans to invest INR 10,000 crores approximately over the next 4 years for the implementation of more than 400 projects in the North-Eastern region. The states have been mandated to prepare a comprehensive digital plan, digital profiles of all the states that highlight respective strengths and weaknesses as well as state-wise roadmaps for the implementation of digital initiatives. 10,000 BPOs supported by a network of common service centres will cover all the villages and a cloud hub will be set up in Guwahati. The capacity building in terms of using digital technologies of over 50,000 government officials will be undertaken.

Hinged upon the faith in the power of Information Technology (IT) as an enabler of efficiency, equity and empowerment, the aim is to bridge the digital and geographical divide between the North East and the rest of India. This Vision holds immense financial and logistical promise in terms of consolidating the individual identity of states that are often lumped together as one unit by the rest of the country, thereby critically leapfrogging its overall development and realizing its full potential.

India Outbound
October 17,2018

source https://indiaoutbound.org/digital-north-east-vision-2022-prospects/

The North East of India as a pivot for potential Japan-India collaboration

During the first Japan-India Coordination Forum for Development of the North Eastern Region, it was announced that India plans to spend INR 45,000 crores for addressing the gaps in state plans vis-à-vis the development of the region bordering China, Bhutan, Bangladesh and Myanmar. Looking for collaborative interventions that can fast-track development in the North East of India, Japan’s assistance has been sought across tourism, food processing, skill development as well as infrastructural development, especially in terms of alleviating their vulnerabilities to natural calamities, for example, by ensuring that buildings are resistant to damage from earthquakes.
 
A key outcome of Prime Minister Shinzo Abe’s visit to India during the 12th Indo-Japan annual summit was the Memorandum of Understanding that was signed for setting up an India-Japan Act East Forum as an amalgamation of India’s Act East Policy and Japan’s Free and Open Asia-Pacific strategy. This Forum will promote development projects in the North East of India as well as enhance connectivity in the region.
 
Japan and India have historically had a long-standing and multi-faceted relationship. They have been engaged in cultural exchanges and have cemented strategic ties over time.Their trade relations flourished post World War II. Japan is one of the few countries that India has allowed to be a part of the socio-economic development efforts in the North East. Now, their linkages are deepening as major development partners, with the enhancement of economic and diplomatic agreements as well as strategic defense partnerships based on a common vision of the evolving scenario in Asian geopolitics.
 

 
The Japanese companies have been entering into joint ventures with Indian companies, based on investments and capacity expansions, in order to take advantage of the cheap labour and technological expertise available in India. India’s Act East Policy has further influenced the influx of businesses in India, especially in the North East of India, as reflected by the presence of Japanese business establishments. Japan has been extending ODA loans in the North East since 1981, across fields like water supply, energy, forestry and urban development.
 
The North East of India is strategically located at the juncture of Japan and South-East Asia and acts as a corridor to the BIMSTEC countries i.e. economic cooperation with Bangladesh, India, Myanmar, Sri Lanka and Thailand. In the backdrop of China’s One Belt Road Initiative, Japan is interested in exploring collaborative opportunities with India for the development of projects in ASEAN. In this context, the abundance of skilled labour available in North East could aid Japan in multiple ways.
 
Kenji Hiramatsu, Japan’s ambassador to India, describes Japan as “a natural partner for the development of the north-east region.” The aspirational element of the India-Japan bilateral relationship is captured in the Joint Statement on India and Japan Vision 2025: Special Strategic and Global Partnership Working Together for Peace and Prosperity released by Prime Ministers Shinzo and Modi during the former’s visit to India in 2015.
 
 
India Outbound
October 15,2018
 
 
 

source https://indiaoutbound.org/the-north-east-of-india-as-a-pivot-for-potential-japan-india-collaboration/

Australia’s new political and economically: India

India and Australia have been major political players in the Indo Pacific region but they have had a historically lukewarm relationship, in terms of trade and diplomacy. According to some foreign policy white papers released by the government of Australia, Canberra seeks to strengthen its ties with Delhi through trade and commerce. The white papers are a set of recommendations, which outline what the Australian plans to do in the near future with regards to its foreign policy.
 
The white papers contain around ninety recommendations in making India a strategic partner in the Indo Pacific region by 2035. The most prioritised sector seems to be higher education. This does not come as a surprise as Indians already consider Australia to be one of the favourable higher education destinations. Moreover, Australia also provides two-year work permits for students having completed their studies there. Can berra will try to take this further by setting up a higher education hub in India and even having an Australian consortium partnering a new IIT in India. Suchan investment makes logical sense when one understands that education is Australia’s third largest export.
 

 
The White Papers further suggest that Australia should support Indian membership in the Asia Pacific Economic Cooperation (APEC). APEC is a 21 member organisation which supports free trade all across the Asia Pacific region. Australia probably hopes to champion the Indian cause in the APEC to get a free trade agreement (FTA) with India in the longer run. This would not only strength then Australia’s ties with India, but also thwart Chinese hegemony over the Asia Pacific region.
 
With a growing Indian economy, an FTA could boost commodity export from Australia. Amongst the commodities to look at for Australia would be LPG. Australia is also endowed with a multitude of natural resources, which they can use to establish sound trading relations. The white paper does identify the servicing and IT sector of India to be of key interest. It will be logical if Australia uses this sector to build the political bridge with India. Australia does plan to make India a top ODI destination for Australia and since one of the major sectors attracting ODI from foreign countries is the IT sector, this underlines the probability of Canberra leveraging its political strength through the Indian IT sector.
 
But as of today, there is too much speculation about the concrete nature of the trade between these two countries. The white papers are policy recommendations that have targets to be fulfilled by 2035. Although it might be too early to make concrete statements about the nature of the relationship between the two countries, we can all be sure that Australia has forgone its earlier mistrust of India and is signalling to be one of our closes economic and politicalally.
 
India Outbound
October 15,2018
 
 
 

source https://indiaoutbound.org/australias-new-political-and-economic-ally-india/

Green cover loss in Arunachal Pradesh and Assam

A study carried out by the Indian Institute of Remote Sensing (IIRS) has predicted a depletion of 9,007.14 square km (2.94%) of forests in parts of Assam and Arunachal Pradesh by 2028. The study, Forest Cover Monitoring and Prediction in a Lesser Himalayan Elephant Landscape, published in the current issue of Current Science, says deforestation and loss of wildlife habitat in Upper Assam is likely to influence not only adjoining Bhutan and Arunachal Pradesh but lower Assam as well.
 
Scientists involved in the study said they monitored the depletion of forest cover in parts of Assam and Arunachal Pradesh over 42,375 square km in an elephant landscape falling in the Lesser Himalaya in the Northeast. The forest cover of 2028 was predicted using the 2000-2009 depletion of forests study and Cellular Automata Markov Model (CAMM). As elephants are long-ranging animals and are distributed across the landscape, it is important to carry out studies covering large areas to address the habitat status over time, which can be used for effective habitat conservation.
 

 
According to this study, more districts of Assam than Arunachal Pradesh and more plains than hills faced deforestation. It has identified increasing human population and subsequent demand on land for cultivation as major reasons for forest cover depletion. With the highest rate of deforestation (in the Assam-Arunachal area) in India, the study area can also be addressed as the deforestation hotspot of India.
 
The annual rate of deforestation was found to be higher in Assam than Arunachal Pradesh primarily due to the latter’s inhospitable mountainous terrain. Among the districts in Assam, the highest deforestation was noticed in Barpeta, followed by Dhemaji, Tinsukia, Lakhimpur, Darrang, Dibrugarh and Sonitpur during the 85-year study period. Area-wise, the largest amount of forest cover loss was noticed in Dhemaji (1,419.99 square km), followed by Sonitpur (825.85 square km), Lohit in Arunachal (820.61 square km), Tinsukia (662.28 square km) and Lakhimpur (635.15 square km).Of the 9,000 square km forest cover loss prediction, Assam and Arunachal are predicted to lose around 670.55 square km of moist deciduous dense forest by 2028.
 
A.J.T. John Singh and Kamal Medhi evaluated the three community conservation areas (CCAs) established by the World-Wide Fund for Nature (WWF)-India and talked in their report about tremendous extraction of wood for various purposes, garbage management problem, and how cultivation was encroaching upon the mountain slopes, destroying the ecologically precious forests, and road-building activities with enormous extraction of wood.
 
This kind of massive green cover loss by 2028 will not only affect India but it will also affect the ecology of neighbouring country Bhutan. Wildlife activists said lack of forest cover will bring further chaos from food and water security point of view in Assam. With planting trees, we also need to work towards revitalising the forest ecosystem. It is important to sensitise the local people to realise and protect the forest wealth and biodiversity of these regions as development must not take place at the cost of conservation.
 
 
India Outbound
October 12,2018
 
 
 

The post Green cover loss in Arunachal Pradesh and Assam appeared first on .

source https://indiaoutbound.org/green-cover-loss-in-arunachal-pradesh-and-assam/

In Conversation with Dr. Raman Singh, Hon’ble CM of Chhattisgarh

Ql. Why is the government keen on building a Start-up ecosystem in Chhattisgarh?
In recent times, Chhattisgarh has performed consistently well, vis-à-vis the national average when it comes to delivering economic growth. However, like the rest of India, our state not only needs to accelerate this pace of growth but aim for a quantum jump in growth, to provide a better sustainable quality of life for our citizens with opportunities for the many (“Sabka Saath Sabka Vikas).
 
My belief is that leapfrogging in growth can only be achieved through disruptive innovations; and disruptive innovations are more likely to emerge from creative entrepreneurs running energetic and knowledge-based start-ups. I want Chhattisgarh to be a destination for Indian entrepreneurs — a place where they can unleash their creativity and launch world-beating products/services not only to sell to the rest of India, but to the world.
 
Our government is committed to creating that environment and infrastructure along with the other support mechanisms such as mentoring, funding and access to wider markets that makes Chhattisgarh the preferred destination for Indian and foreign innovative companies.
 
This would not just improve the state’s performance on economic indices but develop unique innovation quotient/capital, while enabling the state to lift more people out of poverty and create opportunities for those in the marginalised sections of society.
 
We have been among the pioneering states in the country with a comprehensive start-up policy that has been embraced byall the key stakeholders in the state and we will ensure a vibrant internationally connected start-up ecosystem in Chhattisgarh.
 
Q2. Why the aim to be “the” Frugal Innovation hub of the country?
There is a consensus across nations that inequality is the biggest threat facing humanity, which also states that technology has exacerbated this challenge.The role of innovation and technology in alleviating absolute poverty has been a tremendous success, however, when it comes to bridging the equality gap, it has in fact done the opposite. The scale of inequality in the world today is unsustainable and poses significant danger to our societies in the long run.
 
Frugal Innovation enabled by technology aims to reverse that trend and ensure not only basic amenities but also opportunities that are available to the socio-economically weaker sections of our society. It answers questions about how to best harness human ingenuity with technology to provide health care, education, electricity alongside access to technology and opportunities at the cheapest possible cost to support the aspirations of the poorer 6 billion.
 
By becoming the frugal innovation hub of the country, we will be able to deploy those solutions in our home state and help not only deliver improved public services but also ensure that the wider society in Chhattisgarh has access to the tools needed to succeed in the 21st century economy. And this comes with a significant market proposition.
 
These frugal solutions, once successful in a country like India, would have the potential of solving similar challenges across the developing world. The market for Indian frugal innovation solution, the AtalInnovation Mission believes, is in the region of hundreds of billions of dollars over the next decade or so. Our aim is to have Chhattisgarh at the heart of this frugal solutions export model – “Make in Chhattisgarh- sell in India; sell globally”.
 
Q3. Chhattisgarh seeks to make all its urban bodies “smart.” What is the vision that is driving this and what steps are being taken to ensure fruition?
The simple answer is that citizens everywhere deserve a good sustainable quality of life with opportunities. So, our vision is not only about urban bodies but ideally delivering similar quality of life in our villages, where our citizens are not left behind. That isthe vision.
 
The Prime Minister Narendra Modi-led national mission on Smart Cities showcases the path; but people beyond those smart cities, chosen in the national framework, deserve and aspire to achieve a similar quality of life. And it is upto the state and local governments to further the impact of the national initiative – through state-based programmes developed around local needs and aspirations.
 
Q4. You have often used the phrase “nutritional security” and your commitment to pursuing this. Could you provide some insights?
Malnutrition, especially among the poorer sections of society, has been a barrier to living fulfilling and productive lives. Among children, they have devastating life-long impacts and hence, addressing food and nutrition challenges, including agrarian ones, have been a key hallmark of my government. It also demonstrates that frugal innovation does not necessarily mean enabled by technology.
 
Chhattisgarh has been a pioneer in delivering food and nutritional security where 85% of the households in the state are covered under the MukhyamantriKhaddyanna Suraksha Yojana and almost all the families in the state are covered through the Chhattisgarh Food and Nutrition SecurityAct. The entitlements are provided to each household and the eldest woman in the household is deemed to be the head of the household. Through these initiatives, we have been able to cover a significant majority of the households in the urban informal sector, landless labourers, marginal farmers among others, in the most vulnerable sections of society.
 
One of the key innovations that have been deployed in the state is how we have rethought the public distribution system (PDS). The approach we inherited, like in most states, was designed around private entities that completed the “last mile” in public distribution. We have now adopted a model where these private entities have been replaced by community organisations including Gram Panchayats (village councils), women’s self-help groups and other community organisations. These have tackled a significant part of the leakage, that is often the case with public distribution systems in most parts of the country, including Chhattisgarh.
 
Q5. How do you envision the state in 2028? What are the key steps that need to be taken to turn your vision into reality?
We are committed to speeding up Chhattisgarh’s growth across all parameters over the next five years, based upon Hon’ble Prime Minister Modi’s Vision of Naya Bharat or New India@2022. For this, we must harness the efforts of all stakeholders — government, civil society, academia, private sector, public sector and development partners, towards specific outcomes, to be achieved in full measure, by or before 2022, when the nation celebrates the 75th anniversary of our Independence.
 
The outcomes that would enable the realisation of the above vision would relate to an India that is Swachhh (Clean), Healthy (Swasth), Shikshit (Educated), Sampann (Prosperous), Saksham (Capable) and Surkashit (Secure).
 
 
India Outbound
April 22, 2018
 
 
 

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Apac countries pushing India to removeduties on 90% trade goods

India is under pressure from 15 other Asia-Pacific (APAC) countries to abolish duties on almost 90% of the goods that it trades with them under the Regional Comprehensive Economic Partnership (RCEP). The RCEP is a proposed free trade agreement (FTA) between the ten ASEAN countries and 6 APAC states with which the ASEAN has existing FTAs. RCEP covers a population of 3.4 billion, with a total gross domestic product (GDP) of US$49.5 trillion, or about 39% of the world’s GDP. Thus, the economic prospects of the market covered is exponential.
 
In the face of an impending global economic downturn spurred by the looming trade war between the US and China, the unrest in the Middle East and the implications of Brexit, signing the RCEP conclusively, is imperative to ensure the economic health of the participating countries. The treaty is a purveyor of free markets and open international trade, likely to benefit a burgeoning population in the APAC region.
 
Experts however are divided on whether the RCEP tables sustainable and feasible demands for India.The emphasis on elimination of trade barriers would ensure that India has access to other open markets apart from the ASEAN member countries. However, it would also widen the already existing trade deficit that India has with 10 of the existing RCEP partners.
 
DEPARTMENT OF COMMERCE, GOVERNMENT OF INDIA.
EXPORT-IMPORT DATA BANK FOR THE 10 APAC COUNTRIES INDIA HAS A TRADE DEFICIT WITH (2017-18)
 
(VALUE IN US $ MILLIONS)
 

COUNTRY	EXPORT	IMPORT	TRADE DEFICIT
AUSTRALIA	4,012.33	13,993.75	-9981.42
BRUNEI	63.19	434.83	-371.64
CHINA	13,336.78	76,271.72	-62934.94
INDONESIA	3,963.77	16,438.80	-12475.03
JAPAN	4,734.22	10,973.48	-6239.26
LAOS	25	168.63	-143.63
MALAYASIA	5,700.09	9,011.58	-3311.49
NEWZEALAND	352.85	643.71	-290.86
SOUTH KOREA	4,460.98	16,361.76	-11900.78
THAILAND	3,653.66	7,134.55	-3480.89

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GenRobotic Innovations: Changing Manhole to Robohole

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My Poor MP

Everyone has views on who to vote for…but who do wereally vote for? -Siddharth JhawarImagine applying for a job in which your odds of selection were 1 in 2 million. However, once you got in, you realize that what your job description says and what your bosses expect from you are essentially different roles. Your clients are suspicious and cynical of your day-to-day activities, and some of them loathe you.Compensation is quite poor, you would get paid better elsewhere,and, in fact, you may have to bear your office expenses too. All this while, many other people want your job and so you try hard to keep it. Welcome to the life of an Indian Member of Parliament!

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