Ahead of WTO’s Nairobi meet, India digs in its heels on food security Govt’s strong position ahead of Nairobi meet may thwart attempts by developed countries to wind up Doha round

Ahead of WTO’s Nairobi meet, India digs in its heels on food security

Govt’s strong position ahead of Nairobi meet may thwart attempts by developed countries to wind up Doha round

India is digging its heels in to pursue its demand for a permanent solution that will entitle poor countries to public stockholdings of foodgrains, and safeguards to protect them from sudden import surges.

The National Democratic Alliance (NDA) government made its stand clear ahead of a ministerial meeting of the World Trade Organization starting in Nairobi on 15 December.

India’s strong position may thwart attempts by developed countries to wind up the 14-year-old Doha Development Round in the Kenyan capital to move on to a new round of negotiation.

The country was involved in an acrimonious face-off with advanced economies in the multilateral trade body last year, forcing the WTO to amend an agreement and committing it to an indefinite interim solution on public stockholdings for food security. The original agreement had envisaged an interim solution for a period of four years.

“Even though we have a peace clause in place, a permanent solution was agreed to be delivered post-Bali. So that can’t be a negotiable instrument. That will be part of my draft ministerial declaration. It should in fact be in the WTO draft itself, not just India’s draft,” trade minister Nirmala Sitharaman said on Monday.

“How can I be seen as an obstructionist if I insist on what is agreed at Bali (Indonesia) to be fulfilled? The spirit of Bali should be respected. I am not asking for anything new,” she added.

The issue of food security and farm subsidies are politically sensitive issues in India, given that around 58% of India’s rural households depend on agriculture while over 22% of its population live below the poverty line. After Prime Minister Narendra Modi came to power in May 2014, he took a strong exception to the four-year peace clause agreed at a ministerial meeting in Bali, Indonesia, in 2013, under which developing countries cannot be legally challenged if they breach the WTO ceilings on public stockholding for food security purposes.

Modi threatened to stall the trade facilitation agreement (which is aimed at easing customs rules for cross-border flow of goods) and forced developed countries, led by the US, to change the Bali agreement to include a permanent peace clause for developing nations. WTO members also agreed to “engage constructively” for a permanent solution on the matter by the end of 2015.

India is also insistent on a permanent solution as the present peace clause does not allow it to expand its food security programme to new areas. Sitharaman said items covered in the public distribution programme vary from state to state.

“India has a public distribution system where some states give edible oil, sugar in addition to grains. In some states, even the grains vary,” she added.

Sitharaman criticized developed countries for not agreeing to a post-Bali work plan for many of the decisions taken at Bali, including a permanent solution on food security.

Asked if India will refuse to negotiate at Nairobi without a work agenda in hand, Sitharaman said, “Nothing while negotiating can be so black and white. I am making my wish list clear.”

On attempts by developed countries to differentiate among developing countries by putting emerging economies like India and China in a different league, Sitharaman said such categorization does not work. That’s because developing countries have a lot of gap to cover when it comes to ensuring a respectable living standard for all their citizens.

“We are still struggling to provide basic infrastructure to all our people. Therefore, to treat us different from other developing countries is too early and too soon,” she said.

On a special safeguard mechanism (SSM) that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls in certain commodities, Sitharaman said it should not be difficult to agree to such a system.

Sitharaman said since the constant endeavour is to bring down tariffs, SSM is the only option left for developing countries to protect themselves from a surge in imports.

“So logically speaking, SSM is absolutely consistent (with WTO principles) and a fair demand,” she added.

Asked what India can offer in return for an SSM to developed countries for a balanced outcome, Sitharaman said it depends on what they ask: “They have not asked us anything so far.”

On whether export competition, which developing countries use to provide certain export subsidies, can be a counter-balance to SSM, Sitharaman said export competition includes agricultural goods too. “If you are giving it away, then you are giving away that little protection available,” she said.

India’s chief trade negotiator Arvind Mehta said there was no consensus on non-agricultural market access, so it is unlikely to be put on the table as a counter-proposal to SSM.

When asked whether India will agree to a proposal for a new round of negotiations where its concerns will be addressed, Sitharaman said she would wait for any such proposal to be made. She said developed countries are right to point out that the Doha round had not delivered after 14 years of negotiations, but developing countries too are right in adopting the stand that their concerns be reflected in the Doha round. “We need a positive outlook in dealing with issues before us, not only India but all participant countries. Both are right,” she added.

“But you cannot just by changing the framework expect that you will have a better opportunity to fulfil their developmental agenda,” she added.

On implementing the trade facilitation agreement agreed upon in Bali, Sitharaman said India had clearly said it was in favour of it and will ratify it once the cabinet clears it.

Asked about India’s stand on the so-called 21st century issues such as global value chain, labour and government procurement that developed countries want to discuss under the current framework, Sitharaman said India was fine with new issues as long as they are only for discussion and not for binding commitments.

Biswajit Dhar, a professor in economics at Jawaharlal Nehru University, said India will achieve nothing by going to Nairobi with a defensive approach.

“If we have support from over 100 countries as claimed by India’s trade secretary (Rita Teaotia) last week, we should be setting the agenda at WTO. We should be taking on farm subsidies by developed countries more aggressively and should not be defensive about our justified subsidies,” he added.

India’s forest cover goes up, shows report

India’s forest cover goes up, shows report

Recently released biennial report of Forest Survey of India showcases how India has added 3,775 sq km to its green cover since 2013. It also reported an increase of 2,402 sq km in the very dense forest category that had remained static since 2007.

Details:

• The 2015 report shows that while 2,511 sq km of prime forests have disappeared altogether, 1,135 sq km of non-forest areas have become either very dense or mid-dense forests during that time.
• Even accounting for the non-forest areas now recorded as dense and mid-dense forests, the net loss of forests in these prime categories works out to be 1,376 sq km — more than twice the area of Mumbai — in two years.
• The states of J&K, Uttarakhand, Meghalaya, Kerala, Arunachal Pradesh, Karnataka, Uttar Pradesh, Telangana and Manipur, and the Andaman & Nicobar Islands took major hits in the loss.
• The overall gain of 2,402 sq km of very dense forests since 2013 is largely due to positive results from the Andaman and Nicobar Islands, Uttar Pradesh and Tamil Nadu.
• Andman and Nicobar islands have gained a remarkable 1,932 sq km of very dense forests, putting 5,686 sq km — or 84% — of its entire forest cover of 6,751 sq km under the top category. Uttar Pradesh added 572 sq km of very dense forest — a jump of 35% since 2013. Tamil Nadu reported a net gain of 100 sq km of very dense forest.
• Madhya Pradesh remains the state with largest forest cover, 77,462 sq km. Followed by Arunachal Pradesh with 67,248 sq km and Chhattisgarh having 55,586 sq km.
• Mizoram has the highest forest cover (88.9%), followed by Lakshadweep with 84.6%. Andaman & Nicobar Islands, Arunachal Pradesh, Nagaland, Meghalaya and Manipur have more than 75% of area under forest.

While an area of at least 1 hectare (0.01 sq km) with a canopy density of 10% is considered forest, prime forests are classified as very dense and mid-dense with canopy densities of at least 70% and 40% respectively.

PAHAL-Guinness world record

PAHAL-Guinness world record

Petroleum Minister Shri Dharmendra Pradhan presented the certificate received from Guinness Book of World Records to the  Hon'ble Prime Minister Shri Narendra Modi today in New Delhi. The certificate is in recognition of PAHAL as the largest cash transfer programme in the world.

Government of India launched the `PAHAL’ Scheme in 54 districts of the country on 15.11.2014 and in remaining districts of the country on 1st January, 2015. LPG consumers who join the PAHAL scheme will get the LPG cylinders at market price and receive LPG subsidy (as per their entitlement) directly into their bank accounts.

The “Pahal” scheme has been acknowledged by the Guinness Book of World Records for being the largest cash transfer program (households) with 12.57 crore households receiving cash transfer as of 30^th June, 2015. As on 03^rd Dec, 2015, 14.62 crore LPG consumers have joined the PAHAL scheme and are receiving the subsidy directly into their Bank Accounts.

This scheme has enabled substantive savings in subsidy on supply of LPG consumers to the households. As on 1st April, 2015, there were 18.19 crore registered LPG Consumers and 14.85 crore active consumers implying a gap of 3.34 crore consumers which are duplicate / fake / inactive accounts blocked under PAHAL Scheme and related initiatives.  If we take into account the quota of 12 cylinders per consumer and the average LPG subsidy of Rs.366 per cylinder for the year 2014-15, estimated savings in LPG subsidy due to the blocking of 3.34 crore accounts work out to Rs.14,672 crore, during that year.    Further, as of today, out of a total of 16.27 crore active consumers, 14.62 crore consumers are availaing subsidy – resulting in further subsidy saving for 1.65 crore consumers.     

Health Sector of the Country

Health Sector of the Country

The focus of the Government is to provide accessible, affordable and accountable healthcare facilities to all sections of the country. Accordingly, Government of India also provides financial assistance to State/UT Governments for supplementing their efforts in this direction as the health is a State subject. The public expenditure on healthcare provisioning has increased from Rs.88,054crore in 2009-10 to Rs. 1,54,567 crore in 2014-15 (BE) as per Economic Survey 2014-15.

The Government of India has formulated the draft of National Health Policy 2015 in the light of the changes that have taken place in the country’s health sector scenario since the formulation of the National Health Policy 2002.

The public expenditure on health as percentage of GDP stands at 1.2 percent for 2014-15 (BE) as per Economic Survey 2014-15. The Twelfth Five Year Plan envisages increasing total public health funding on core health to 1.87 percent of GDP by the end of the Plan period.

The primary responsibility to regulate the private health care sector rests with the State/UT Governments. The Central Government has enacted the Clinical Establishment (Registration and Regulation) Act, 2010, to provide a legislative framework for the registration and regulation of clinical establishments in the country and also seeks to improve the quality of health services through the National Council for Standards by prescribing minimum standards of facilities and services which may be provided. The Clinical Establishments Act has, however, been adopted only by the States of Sikkim, Mizoram, Arunachal Pradesh, Himachal Pradesh, Uttar Pradesh, Bihar, Jharkhand, Rajasthan, Uttarakhand and all Union Territories except Delhi.

Further, the Medical Council of India (MCI) grants recognition of medical qualifications, gives accreditation to medical colleges, grants registration to medical practitioners, and monitors medical practice in India, through the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002. Complaints against medical practitioners with regard to professional misconduct fall within the ambit of the Medical Council of India or the concerned State Medical Council, as the case may be.

In order to meet the country’s needs in health sector, the Government has taken several steps which inter-alia includes:-

• Initiatives under the National Health Mission (NHM) for providing free of cost health care in the public health facilities through a nationwide network of Community Health Centres (CHCs), Primary Health Centres (PHCs) and Sub Centres (SCs) in both rural and urban areas. Various programs such as National AYUSH Mission, RashtriyaKishorSwasthyaKaryakram, RashtriyaBalSwasthyaKaryakram, National Deworming day, Weekly Iron Folic Acid supplementation program, Menstrual Hygiene Program, Mission Indradhanush, KayakalpAbhiyan, Free Drugs and Diagnostic Initiative, Free care for family welfare services, JananiShishuSurakshaKaryakaram (JSSK), free medicines under the various national health programmes like Anti-Malaria and Anti-TB Programmesseek to strengthen various health components.

• Making available tertiaryhealth care services in the public sector through strengthening of hospitals, establishment of AIIMS institutions in the States and up-gradation of existing Government medical colleges across the country.

• Making available quality generic medicines at affordable prices to all, under ‘Jan Aushadhi Scheme’, in collaboration with the State Governments.

• RashtriyaSwasthyaBimaYojana (RSBY) which provides for smart card based cashless health insurance including maternity benefit on family floater basis

The Government has also taken several steps in the direction of preventive health care, which inter-alia include Universal Immunization of children against seven diseases; Pulse Polio Immunization; Family Planning services; Maternal and Reproductive Health Services; Child Health services that include both home based and facility based New born Care; Adolescent Reproductive and Sexual Health (ARSH) services; Investigation/ screening and treatment for Malaria; Kala-azar, Filaria, Dengue; Japanese Encephalitis and Chikungunya; Detection and treatment for Tuberculosis including MDR-TB; Detection and treatment for Leprosy; Detection, treatment and counseling for HIV/AIDs; Cataract surgery for Blindness control.

Further, under RashtriyaBalSwasthyaKaryakram (RBSK) support is being provided to States/UTs for child health screening and early intervention services through early detection and early management of common health conditions classified into 4 Ds i.e. Defects at birth, Diseases, Deficiencies, Development delays including disability. A comprehensive National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular diseases and Stroke (NPCDCS) for activities including health promotion, early detection and treatment of Cancer, Diabetes, Cardiovascular diseases and Stroke, has also been initiated.

National Nutrition Policy

National Nutrition Policy

National Nutrition Policy (NNP) has been adopted by the Government in 1993. The National Nutrition Policy (NNP) identified key action in various areas having impact on nutrition such as agriculture, food production, food supply, education, information, health care, social justice, tribal welfare, urban development, rural development, labour, women and child development, people with special needs and monitoring and surveillance.

The core strategy envisaged under NNP is to tackle the problem of nutrition through direct nutrition interventions for vulnerable groups as well as through various development policy instruments which will improve access and create conditions for improved nutrition.

The direct short-term nutrition intervention suggested by NNP include: (i) Nutrition interventions for specially vulnerable group such as children below 6 yrs, adolescent girls and pregnant and lactating women, expanding the safety nets, facilitating behaviour change among mothers, reaching the adolescent girls and ensuring better coverage of expectant women; (ii) Fortification of essential food items with appropriate nutrients; (iii) Popularization of low cost nutritious foods prepared from indigenous and locally available raw materials; (iv) Control of micronutrient deficiencies among vulnerable groups.

The indirect long term nutrition interventions leading to institutional and structural changes including: (i) Food security for improved availability of food grains; (ii) Improvement of dietary patterns through production and demonstration; (iii) Policies for effecting income transfers so as to improve the entitlement package of the rural and urban poor – improving the purchasing power and strengthening public distribution system; (iv) Land reforms measures for reducing vulnerabilities of landless and landed poor; (v) Strengthen health & family welfare programme; (vi) Imparting basis health and nutrition knowledge; (vii) Prevention of food adulteration; (viii) Improvement in nutrition surveillance; (ix) Monitoring of nutrition programmes; (x) Research into various aspects of nutrition; (xi) Equal remuneration for women; (xii) Communication through established media (xiii) Minimum wage administration to ensure its strict enforcement and timely revision and linking it with price rise through a suitable nutrition formula –a special legislation for providing agricultural women labourers the minimum support, and at least 60 days leave by the ‘employer in the last trimester of her pregnancy; (xiv) Community participation for generating awareness on NNP – active participation of community members in management nutrition programmes & related interventions through beneficiaries committees, participation of women in food production & processing, promoting kitchen gardens, food preservation, preparation of weaning food, generating demand of nutrition services; (xv) Education and literacy; (xvi) Improvement in status of women.

Further to this a National Plan of Action on Nutrition (NPAN) 1995 was laid down focusing on reducing under nutrition which entails a Multi-sectoral approach for accelerated action on determinants of malnutrition.

The NITI Aayog has been mandated to examine the emerging data on under-nutrition and prepare, in consultation with ministries of Women and Child Development and Health and Family Welfare, a specific strategy for poor performing states/districts.

E-Sahyog Project; Aims at Reducing Compliance Cost, Especially for Small Taxpayers

E-Sahyog Project; Aims at Reducing Compliance Cost, Especially for Small Taxpayers

The Government has launched ‘e-Sahyog’ project on a pilot basis. It is aimed at reducing compliance cost, especially for small taxpayers. The objective of ‘e-Sahyog’ is to provide an online mechanism to resolve any mismatch or discrepancy in information as per Income-tax return of the tax payer viz-a-vis information received through AIR, CIB, TDS Statements etc., without visiting the Income Tax Office. Under this initiative the Department will provide an end to end e-service using SMS, e-mails to inform the taxpayers of the mismatch. The taxpayer has to login to the e-filing portal with his user-ID and Password to view mismatch related information and submit online response on the issue. The responses submitted online by the taxpayers will be processed and if the response is found satisfactory, the issue will be treated as closed. The taxpayer can check the updated status by logging into the e-filing portal. The tax payers shall also be informed of closure of cases through SMS and e-mail.

The Government has taken steps to address the genuine problems being faced by the tax payers and to reduce the unnecessary harassment meted out to them by the tax authorities.

The Government has set up PAN camps at some selective remote areas in the country. These PAN Camps have been organized through PAN services providers NSDL e-Governance Infrastructure Limited (NDDL e-Gov) and UTI Infrastructure Technology and Services Limited (UTIITSL).

NSDL e-Gov has organized PAN Camps at 23 locations across India in the months of October and November 2015. In these PAN camps, blank PAN forms have been made available alongwith instructions and guidelines for filling these forms. Duly filled-in forms along with prescribed documents are also collected in these camps.

UTIITSL has organized PAN camps at 30 locations across India in the months of October and November 2015. Organizing such camps is an ongoing process. The service providers will continue to hold more camps during the year to facilitate obtaining of PAN by persons residing in remote and semi urban areas.

Government Launches Three Gold Schemes; India Surpasses China as the World’s Largest Gold Consumer

Government Launches Three Gold Schemes; India Surpasses China as the World’s Largest Gold Consumer

As per the (Gold Fields Minerals Survey) GFMS Gold Survey in the third quarter of 2015 Review and Outlook Report, published by Thompson Reuters, India has surpassed China as the world’s largest gold consumer. According to the report, the consumption of gold in the first nine months of the year 2015 in India has been 642 tonnes whereas that in China has been 579 tonnes. A fall in the prices of gold in the recent months has been one of the reasons for the increased demand for gold in India.

The Government has recently launched a Gold Monetization Scheme (GMS), Sovereign Gold Bond (SGB) Scheme and Indian Gold Coin under gold monetization programme to reduce reliance n gold imports by encouraging households to monetize their gold. These three gold schemes were announced in the Union Budget 2015-16 and were accordingly launched on 5th November, 2015. The detailed guidelines of the Gold Monetization Scheme are available vide RBI’s Master Direction No. DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015 which is available on RBI’s website. The detailed guidelines of the Sovereign Gold Bond Scheme is available vide Government of India’s Gazette Notification F.No. 4(19)-W&M/2014 dated October 30, 2015. The Indian Gold Coin is the country’s first national gold coin of 24 karat purity with 999 fineness which is minted indigenously. It has the Ashok Chakra engraved on one side and the face of Mahatma Gandhi on the other.

The Government receives representations from various organization and individuals with suggestions to improve the existing schemes. These are taken note of and necessary changes made from time to time based on the review of the schemes.

The Gold Monetization Scheme does not provide tax amnesty. As per the guidelines issued by the Government of Gold Monetization Scheme which are available on the website of the Ministry of Finance, tax exemptions, same as those available under the earlier Gold Deposit Scheme (GDS) would be made available to the customers, as applicable.

The objective of the Gold Monetization Scheme is to mobilize the gold held by households and institutions in the country to put this gold into productive use and in the long-run to reduce the current account deficit by reducing the country’s reliance on the imports of gold to meet the domestic demand.