FEBRUARY 2019-ECONOMY NEWS

CSO revises GDP growth rate to 7.2% for 2017-18 from 6.7% estimated earlier

  • The CSO issued first revised estimates for the year 2017-18, revising GDP growth to 7.2% instead of the earlier 6.7% figure.
  • India’s gross domestic product (GDP) grew at 8.2% in 2016-17, 110 basis points more than the earlier figure of 7.1%, according to the second revised estimates released by the Central Statistical Office (CSO).
  • Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2% during 2017-18 and 8.2% during 2016-17.

New e-Commerce Policy Comes Into Effect

  • India’s new e-commerce policy came into effect on February 1, 2019.

  • According to an official notification released on December 28, 2018 by the Department of Industrial Policy and Promotion, a new set of policy rules were formed for the e-commerce companies.

  • It gave them a 60-day window period for aligning themselves to the government’s modified foreign direct investment (FDI) rules.

Important Points:
  • Bar online retailers from selling products through vendors in which they have an equity interest.

  • Also bars them from entering into exclusive deals with brands for selling products only on their platforms.

  • Disallows e-commerce players to control the inventory of the vendors.

  • Any such ownership over the inventory will convert it into inventory based model from marketplace based model, which is not entitled to FDI.

  • Under the new rules, the e-commerce retailer shall be deemed to own the inventory of a vendor if over 25% of the purchases of such a vendor are through it.

  • Restricts marketplaces from influencing prices in a bid to curb deep discounting.

  • With this, special offers like cash back, extended warranties, faster deliveries to some brands will be prohibited, with the view to provide a level playing field.

NBHC releases kharif crop estimates for the year 2018-19

  • National Bulk Handling Corporation (NBHC) has come out with kharif crop estimates for the year 2018-19 which shows that basmati rice production is expected to decline by 9.24% to 5.18 million metric tonne.

  • Pulses production is projected to drop marginally to 9.10 million tonne from 9.35 million tonnne last year.

  • The total oilseeds production is estimated to be 19.87 million metric tonne which is 5.36% lower than last year's figure of 21 million metric tonne.

∗Centre to launch campaign to saturate farmers for financial inclusion under Kisan Credit Cards The Government of India has decided to launch a campaign with immediate effect and accorded the highest priorityto saturate farmers for financial inclusion under Kisan Credit Cards (KCC)
  • The campaign will be launched through the Financial Institutions in collaboration with the State Governments.

  • There are around seven crore active KCCs and issuing of KCCs in large numbers have helped increasing the agriculture credit.

  • It has contributed significantly in not only fulfilling the objective of food security but also increasing the farmer’s income.

FDI declines 11% during April-September

  • According to Ministry of Commerce and Industry data, foreign direct investment (FDI) into India declined 11% to $22.66 billion during April-September period of the current fiscal.

  • The foreign fund inflows during April-September 2017-18 stood at $25.35 billion.

  • Singapore was the largest source of FDI during April-September 2018 with $8.62 billion inflow, followed by Mauritius $3.88 billion.

Fiscal deficit for April-December at 112% of FY19 budget estimate

  • India's budgetary fiscal deficit for the April-December period stood at Rs. 7.01 lakh crore or 112.4% of the budgeted target of Rs. 6.24 lakh crore.

  • According to Controller General of Accounts (CGA) the fiscal deficit during the corresponding nine months of the previous fiscal was 13.6%.

  • The total expenditure of the government at December end was Rs. 18.32 lakh crore or 75% of budget estimates.

  • The total expenditure for current fiscal has been raised to Rs 24.57 lakh crore in the Revised Estimates, from the budgeted Rs. 24.42 lakh crore.

6th Bi-monthly Monetary Policy Statement, 2018-19 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India
  • The Reserve Bank of India has cut the repo rate by 25 basis points in its sixth bi-monthly monetary policy statement for 2018-19.

  • The Monetary policy committee is headed by RBI Governor Shaktikanta Das.

  • The MPC also decided to change the monetary policy stance from calibrated tightening to neutral

Repo Rate 6.25%
Reverse repo Rate 6%
MSF (Marginal Standing Facility) 6.50%
Bank Rate 6.50%
CRR (Cash Reserve Ratio) 4%
SLR (Statutory Liquidity Ratio) 19.25%

Dalmia-OCL buys GSB Group of Germany

  • Dalmia-OCL, a unit of Dalmia Bharat Group, has acquired German speciality refractory GSB Group GmbH for about Rs. 122 crore.

  • Dalmia-OCL will now get access to customers in the steel and refractory making belt in Europe and technology to make cleaner steel.

  • It will gives newer resources and talents in Europe to help strengthen their capability in Indiaments.



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