General Awareness Updates – April 2010

Economy / Business:

Global Gender gap Index: India at the bottom

Iceland has claimed the top spot of the World Economic Forum’s Global Gender Gap Index 2009 from Norway, which slipped to third position behind Finland. Sweden completed the Nordic countries’ continued dominance of the top four. The report’s Index assesses countries on how well they are dividing their resources and opportunities among their male and female populations, regardless of the overall levels of these resources and opportunities.

South Africa and Lesotho made great strides in closing their gender gaps to enter the top 10, at sixth and 10th position respectively. The latest data reveals that South Africa in particular made significant improvements in female labour force participation. Gains for women in parliament and women ministers in the new government also helped close the gender gap in the country. The Philippines lost ground for the first time in four years but remains the leading Asian country in the rankings.

Paraguay (66) climbed a record 36 spots, leading the charge of several Latin American countries including Ecuador (23), Nicaragua (49), Costa Rica (27), Peru (44), El Salvador (55), Chile (64), and the Dominican Republic (67).

Botswana (39) made the second biggest improvement of 26 places, thanks to a major increase in labour force participation according to the latest data from the UNDP, plus greater wage equality for women. Japan’s (75) ranking improved by 25 places relative to last year largely due to increases in the proportion of women in professional and technical positions as well as legislators, senior officials and managers.

The United States (31) fell by three places, owing to minor drops in the participation of women in the economy and improvements in the scores of previously lower-ranking countries.

Germany (12) and the United Kingdom (15) again slipped down the Index this year. Switzerland (13) advanced for a second consecutive year as a result of greater female participation in the economy. Italy (72) continues to hold one of the lowest positions among European countries and dropped three spots relative to 2008 due to persistently poor scores in economic participation.

At the bottom part of the rankings, India (114), Bahrain (116), Ethiopia (122), Morocco (124), Egypt (126), and Saudi Arabia (130) all made improvements relative to their rankings last year. This was driven mainly by small improvements in the economic participation of women. Iran (128), Turkey (129), Pakistan (132), and Yemen (134), already at the bottom of the rankings, displayed an absolute decline relative to their performance in 2008.

Parameters. The Global Gender Gap Report measures the size of the gender inequality gap in four critical areas:

(a) economic participation and opportunity – outcomes on salaries, participation levels and access to high-skilled employment;

(b) educational attainment – outcomes on access to basic and higher level education;

(c) political empowerment – outcomes on representation in decision-making structures, and

(d) health and survival – outcomes on life expectancy and sex ratio.

The Index’s scores can be interpreted as the percentage of the gap that has been closed between women and men.

“Girls and women make up one half of the world’s population and without their engagement, empowerment and contribution, we cannot hope to achieve a rapid economic recovery nor effectively tackle global challenges such as climate change, food security and conflict,” said Klaus Schwab, Founder and Executive Chairman, World Economic Forum.

Out of the 115 countries covered in the report since 2006, more than two-thirds have posted gains in overall index scores, indicating that the world in general has made progress towards equality between men and women, although there are countries that continue to lose ground.

Global trade declined by 12 per cent in 2009

Global trade last year suffered its biggest collapse since World War II, an unprecedented 12 per cent drop according to new figures, with worrying signs suggesting 2010 threatens only mediocre recovery.

“World trade has also been a casualty of the crisis, contracting in volume by around 12 per cent in 2009,” Pascal Lamy, Director General of the World Trade Organisation (WTO), said. “It is the sharpest decline since the end of the Second World War.” This is a steep downwards revision from the WTO’s most recent estimate, in December, of 10 per cent.

While he would give “no forecast” for 2010 trade growth, he insisted a “pickup” was underway, but led by an “overheating” China, could not say whether it was short-term or sustainable. The massive contraction makes it “economically imperative to conclude” stalled international free trade talks in 2010, Mr. Lamy told business figures and policymakers at the European Policy Centre, a Brussels think-tank.

The Doha Round of trade negotiations that began in 2001 with a focus on dismantling obstacles to trade for poor nations has been dogged by intractable disagreements. These include how much the United States and the European Union should reduce farm aid and the extent to which developing countries such as India and China should lower tariffs. Deadlines to conclude the talks have been repeatedly missed, with the latest being the end of this year.

Mr. Lamy blamed last year’s trade “freefall” on a reduction in demand “across all major world economies” as well as the drying-up of trade financing and rising tariffs or national subsidies. Some protectionist response “was to be expected”, he said, although he maintained that worries of “runaway protectionism” had proved an exaggeration.

Amid vast government deficits, he said the biggest enemy to a sustained pick-up was “intolerably high” unemployment that the International Labour Organisation estimates has hit 200 million people worldwide – 20 million of whom have lost their jobs since the crisis began on Wall Street.

“The political consequences in my view are still to come,” Mr. Lamy warned of the so-called jobless recovery, underlining that “keeping international markets open is vital” if negative global economic growth of minus 2.2 per cent in 2009 is to be reversed. He revealed the latest WTO figures in order to underscore his argument that completing the Doha treaty talks was essential to re-booting the global economy after recession. Mr. Lamy said getting agreement on Doha is a “challenge” but said the world was “80 per cent” there.

He also said he “wouldn’t venture any prediction” on when Russia would come on board. Along with Brazil, China and India, Russia makes up a quartet of developing economies said to hold the key to conclusion of a deal that would cut agriculture subsidies and tariffs on industrial goods.

Rail Budget 2010-11

(Highlights)

Introduction

- Economic viability and social responsibility – main consideration for taking up of the projects.

- ‘Inclusive growth and expansion of rail network’ for development of the country.

- Special Task Force to clear proposals for investments within 100 days.

- A separate structure will be created within the Railways for implementation of the business models.

Commitments Fulfilled

- Of the 120 new trains, extensions and increase in frequencies announced, 117 would be flagged off by the end of March 2010.

- Recruitment policy of the Railway Recruitment Boards (RRBs) has been reviewed.

- RRB examination fee for woman candidates and those belonging to minority and economically backward classes waived.

- All question papers to be set in Hindi, Urdu, English and in local State languages and examination for a particular post will be held on the same date simultaneously by all RRBs.

- Izzat Scheme, implemented within three months of announcement.

- Work initiated in all the 67 Multi-functional Complexes (MFCs). Development of Adarsh Stations started in phases.

Passenger Amenities / Facilities

- 94 stations to be upgraded as Adarsh Stations.

- 10 more stations identified to be converted as World Class Stations.

- Construction of additional 93 Multi Functional Complexes.

- Multi-level parking through PPP route.

- Six clean drinking water bottling plants to be set up through PPP for providing cheap bottled drinking water.

- SMS updates of reservation status and punctuality of trains to passengers,

- SMS updates on the movement of wagons to freight customers.

- RFID technology for tracking of wagons to provide modern trolleys at all important stations to be handled by uniformed attendants for senior citizens and ladies.

- Allotment of iron ore rakes to be rationalised scientifically and would be accessible through the web.

- Introduction of e-ticket based mobile vans for issuing tickets.

Safety and Security

- Automatic fire and smoke detection system to be introduced in 20 long distance trains.

- All the unmanned LCs to be manned within five years.

- 12 companies of women RPF personnel named ‘Mahila Vahini’ to be raised.

Sports

- Railways first recipient of Rashtriya Khel Protsahan Puraskar

- Five Sports Academies at Delhi, Secunderabad, Chennai, Kolkata & Mumbai to be setup.

- Astro-turfs to be provided at more places for hockey.

- Railways will be lead partners of Common Wealth Games.

- Railways to run a Commonwealth exhibition train.

Culture and Heritage

- To set up a Railway Cultural & Heritage Promotion Board for coordinating and supervising all related activities on the railways.

- To set up Rabindra Museum at Howrah and Gitanjali Museum at Bolpur to commemorate 150th birth anniversary of Rabindranath Tagore.

- To set up Shambhu Mitra Cultural Complex with performing arts and a music academy at Howrah.

Staff Welfare and Health

- A new scheme “House for All” to be launched, to provide residences to all railway employees in the next ten years with the help of Ministry of Urban Development.

- MOU entered with Ministry of Health and Ministry of Human Resource Development for setting up of hospitals and educational institutions on surplus railway land.

- To set up about 522 hospitals and diagnostic centres, 50 Kendriya Vidyalayas, 10 residential schools on the pattern of Navodaya Vidyalaya, model degree colleges and technical and management institutions of national importance to benefit railway employees and their children.

- To set up 50 crèches for children of women employees and 20 hostels. Railways will also provide more numbers of community centres and stadia.

- Contribution to Staff Benefit Fund to be enhanced to Rs.500 per employee.

- Scope of safety-related retirement scheme to be expanded to cover all safety category staff with a grade pay of Rs.1800.

- To extend Rashtriya Swasthya Bima Yojana to all licensed porters, vendors and hawkers, from unorganised sector and socially challenged.

- To set up a state-of-the-art advanced loco pilot training centre at Kharagpur, an advanced railway track training centre at Beleghata and four multi-disciplinary training centres.

Railway Research

- A Centre for Railway Research to be set up at IIT, Kharagpur. To establish strong research partnerships with premier institutes like IITs, NITs, CSIR and DRDO.

Infrastructure

- To modernise and augment the capacity of CLW to 275 locomotives.

- A Diesel Multiple Unit (DMU) factory to be set up at Sankrail.

- Second unit to be installed at ICF.

- Wagon repair shop to be set up at Badnera.

- Centres of Excellence in Wagon Prototyping to be set up at Kharagpur Workshop.

- A new Rail Axle Factory to be set up in New Jalpaiguri under PPP/JV mode.

- A Design Development and Testing Centre for Wheels to be set up at RWF, Bangalore.

- A new MLR workshop of 250 coach capacity to be set up at Anara (Adra).

- Five state-of-the-art wagon factories to set up at Secunderabad, Barddhaman, Bhubaneshwar / Kalahandi, Guwahati and Haldia under PPP/JV mode.

- Two workshops for POH of high axle load wagons to be set up in Maharashtra and Dankuni.

- Kisan Vision Project initiated at six locations, namely Dankuni, Mechheda, Nasik, New Jalpaiguri, New Azadpur and Singur as pilot projects.

- To set up a refrigerated container factory on PPP mode at Budge Budge.

Freight Business

- A modified wagon investment scheme for high capacity general purpose and special purpose wagons to be introduced.

- Private operators to be permitted to invest in infrastructure and run special freight train.

- To set up automobile and ancillary hubs at 10 locations.

Carbon Footprint

- Railways to distribute 2.6 million CFLs to railway employees.

- To introduce ten rakes with green toilets and install on diesel locomotives a GPS-based optimised driver guidance system.

- To set up 10 Rail Eco-parks to conserve, protect and promote Railways’ wetlands and forest areas.

Other Projects

- Preliminary Engineering-cum-Traffic Survey (PETS) to be taken up for north-south, east-west, east-south and south-south DFCs.

- Six high speed passenger corridors identified, to be executed through PPP mode. To set up a National High Speed Rail Authority for planning, standard setting, implementing and monitoring these projects.

- To provide rail link between Akhaura on Bangladesh side and Agartala on Indian side.

- To new Railway projects viz., Jogbani (India) – Biratnagar (Nepal) new line and Jaynagar (India) – Bijalpur (Nepal) gauge conversion with extension upto Bardibas(Nepal) have been taken up to improve transport infrastructure between the two countries.

Financial Performance in 2009-10

- Loading target of 882 MT likely to surpassed by 8 MT in 2009-10.

- Gross Traffic Receipts kept at Rs.88,356 crore, i.e an increase of 10.7%.

- The full impact of VI CPC fully absorbed within the Railway resources.

- The current dividend liability to be fully discharged.

- Annual Plan kept at Rs.40,284 cr.

Budget Estimates 2010-11

- Freight loading targeted at 944 MT – an increment of 54 MT; number of passengers likely to grow by 5.3 %.

- Gross Traffic Receipts estimated at Rs. 94,765 crore, i.e Rs.6490 cr more than 2009-10.

- The dividend payable to general revenues kept at Rs.6608 crore.

- Budgeted operating ratio 92.3%.

Annual Plan 2010-11

- Highest ever Plan Outlay at Rs.41,426 cr., an increase of Rs.1142 cr over 2009-10.

q New Lines – Rs.4411cr.

q Passenger Amenities – Rs.1302 cr.

q Metro Projects – Rs.1001cr.

- Aquisition of 18000 wagons.

- Additional budgetary support of Rs.3701 cr sought for 11 National Projects.

- Surveys for 114 socially desirable projects connecting backward areas to be taken up.

- 54 Surveys for new lines, 2 for gauge conversion, 7 for doubling and 5 others to be taken up.

- Master Plan for the development of rail infrastructure in the Northeast region to be drawn up in consultation with the Northeast Development Council and the state authorities concerned.

- 1021 km of New Lines to be completed. 9 new line projects announced.

- 800 km of gauge conversion and 700km of doubling targeted.

- Several projects being taken up on cost sharing basis with State Governments and on PPP mode.

Concessions

- Technicians of regional film industry when travelling for film production related work to be eligible for 75% concession in Second Sleeper and 50% concession in higher classes in all trains.

- Cancer patients going for treatment to get 100% concession in 3 AC and Sleeper Class

- 50% concession to spouse of the correspondents extended to the companion of those correspondents who do not have a spouse, and dependent children up to 18 years.

- Service charge on e-tickets to be reduced to Rs.10 for Sleeper Class and Rs.20 for AC Class.

- Reduction of Rs.100 per wagon in freight charges for food-grains for domestic use and kerosene.

New Suburban services

- 101 new suburban services to be introduced in Mumbai area.

- More services to start in Chennai and Kolkata areas.

Special Trains

- Sanskriti Express to run across the country to mark the 150th birth anniversary of Kabiguru Rabindranath Tagore. It is also proposed to take this train to Bangladesh.

- Ladies special trains to be renamed as ‘Matrabhoomi specials’.

- 3 unreserved trains named as ‘Karambhoomi trains’ to be introduced.

- A new weekly express train service ‘Janmabhoomi express’ to start between Ahmedabad and Udhampur.

- Special tourist trains called “Bharat Tirth” to start on 16 routes.

- 6 long route Duronto trains and 4 short distance Duronto day trains to be introduced.

Other New Train Services

- 54 new train services to be introduced.

- 28 new passenger train services, 9 MEMU and 8 DEMU services to start.

- Extension of 21 trains and increase in frequency of 12 trains announced.

Economic Survey 2009-10

(Key Features)

The fiscal year 2009-10 began as a difficult one. There was a significant slowdown in the growth rate in the second half of 2008-09, following the financial crisis that began in the industrialised nations in 2007 and spread to the real economy across the world.

The growth rate of the gross domestic product (GDP) in 2008-09 was 6.7 per cent, with growth in the last two quarters hovering around 6 per cent. There was apprehension that this trend would persist for some time, as the full impact of the economic slowdown in the developed world worked through the system. It was also a year of reckoning for the policymakers, who had taken a calculated risk in providing substantial fiscal expansion to counter the negative fallout of the global slowdown.

Inevitably, India’s fiscal deficit increased from the end of 2007-08, reaching 6.8 per cent (budget estimate, BE) of GDP in 2009-10. A delayed and severely subnormal monsoon added to the overall uncertainty.

The continued recession in the developed world, for the better part of 2009-10, meant a sluggish export recovery and a slowdown in financial flows into the economy. Yet, over the span of the year, the economy posted a remarkable recovery, not only in terms of overall growth figures but, more importantly, in terms of certain fundamentals, which justify optimism for the Indian economy in the medium to long term.

The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.9 per cent. As per the advance estimates of GDP for 2009-10, released by the Central Statistical Organisation (CSO), the economy is expected to grow at 7.2 per cent in 2009-10, with the industrial and the service sectors growing at 8.2 and 8.7 per cent respectively.

This recovery is impressive for at least three reasons. First, it has come about despite a decline of 0.2 per cent in agricultural output, which was the consequence of sub-normal monsoons.

Second, it foreshadows renewed momentum in the manufacturing sector, which had seen continuous decline in the growth rate for almost eight quarters since 2007-08. Indeed, manufacturing growth has more than doubled from 3.2 per cent in 2008-09 to 8.9 per cent in 2009-10.

Third, there has been a recovery in the growth rate of gross fixed capital formation, which had declined significantly in 2008-09 as per the revised National Accounts Statistics (NAS). While the growth rates of private and Government final consumption expenditure have dipped in private consumption demand, there has been a pick-up in the growth of private investment demand. There has also been a turnaround in merchandise export growth in November 2009, which has been sustained in December 2009, after a decline nearly twelve continuous months.

The fast-paced recovery of the economy underscores the effectiveness of the policy response of the Government in the wake of the financial crisis. Moreover, the broad- based nature of the recovery creates scope for a gradual rollback, in due course, of some of the measures undertaken over the last fifteen to eighteen months, as part of the policy response to the global slowdown, so as to put the economy back on to the growth path of 9 per cent per annum.

Other Highlights

o Economy likely to grow by up to 8.75 per cent in 2010-11.

o Full recovery; return to 9 per cent growth in 2011-12.

o Broad recovery gives scope for gradual stimulus roll back.

o High double-digit food inflation in 2009-10 major concern.

o Signs of food inflation spreading to other sectors.

o Farm & allied sector production falls 0.2% in 2009-10.

o Need serious policy initiatives for 4% agriculture growth.

o Moots direct food subsidy via food coupons to households.

o Favours making available food in open market.

o Favours monthly ration coupons usable anywhere for poor.

o Gross fiscal deficit pegged at 6.5 pc of GDP in 2009-10.

o India 10th largest gold holding nation at 557.7 tonnes.

o Exports in April-December 2009 down 20.3 per cent.

o Imports in April-December 2009 down 23.6 per cent.

o Trade gap narrowed to U.S.$76.24 bn in April-December.

o 32.5% savings & 34.9% investment (of GDP in 2008-09) put India in league of world’s fastest growing nations.

o Govt initiates steps to boost private investment in agriculture.

o Wants credit available at reasonable rates on time for private sector to invest in agriculture.

o Slowdown in infrastructure that began in 2007, arrested.

o Domestic oil production to rise 11 per cent in 2009-10.

o Gas output up 52.8 per cent to 50.2 billion cubic meters with RIL starting production.

o India world’s 2nd largest wireless network with 525.1 million mobile users.

o Virtually every second Indian has access to phone.

o Auction for 3G spectrum to provide existing and foreign players to bring in new technology and innovations.

Union Budget 2010-11

(Key Features)

Challenges

- To quickly revert to the high GDP growth path of 9 per cent and then find the means to cross the ‘double digit growth barrier’.

- To harness economic growth to consolidate the recent gains in making development more inclusive.

- To address the weaknesses in government systems, structures and institutions at different levels of governance.

Overview of the Economy

- India among the first few countries in the world to implement a broad-based counter-cyclic policy package to respond to the negative fallout of the global slowdown.

- The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10 pegged at 7.2 per cent. The final figure expected to be higher when the third and fourth quarter GDP estimates for 2009-10 become available.

- The growth rate in manufacturing sector in December 2009 was 18.5 per cent – the highest in the past two decades.

- A major concern during the second half of 2009-10 has been the emergence of double digit food inflation. Government has set in motion steps, in consultation with the State Chief Ministers, which should bring down the inflation in the next few months and ensure that there is better management of food security in the country.

Consolidating Growth

Fiscal Consolidation

- With recovery taking root, there is a need to review public spending, mobilise resources and gear them towards building the productivity of the economy.

- Fiscal policy shaped with reference to the recommendations of the Thirteenth Finance Commission, which has recommended a calibrated exit strategy from the expansionary fiscal stance of last two years.

- It would be for the first time that the Government would target an explicit reduction in its domestic public debt-GDP ratio.

Tax reforms

- On the Direct Tax Code (DTC) the wide-ranging discussions with stakeholders have been concluded – Government will be in a position to implement the DTC from April 01, 2011.

- Centre actively engaged with the Empowered Committee of State Finance Ministers to finalise the structure of Goods and Services Tax (GST) as well as the modalities of its expeditious implementation. Endeavour to introduce GST by April, 2011.

People’s ownership of PSUs

- Ownership has been broad based in Oil India Limited, NHPC, NTPC and Rural Electrification Corporation while the process is on for National Mineral Development Corporation and Satluj Jal Vidyut Nigam. This will raise about Rs.25,000 crore during the current year.

- Higher amount proposed to be raised during the year 2010-11.

Fertiliser subsidy

- A Nutrient Based Subsidy policy for the fertiliser sector has been approved by the Government and will become effective from April 01, 2010.

- This will lead to an increase in agricultural productivity and better returns for the farmers, and overtime reduce the volatility in demand for fertiliser subsidy and contain the subsidy bill.

Petroleum and Diesel pricing policy

- Expert Group to advise the Government on a viable and sustainable system of pricing of petroleum products has submitted its recommendations.

- Decision on these recommendations will be taken in due course.

Improving Investment Environment

Foreign Direct Investment

- Number of steps taken to simplify the FDI regime.

- Methodology for calculation of indirect foreign investment in Indian companies has been clearly defined.

- Complete liberalisation of pricing and payment of technology transfer fee and trademark, brand name and royalty payments.

Financial Stability and Development Council

- An apex level Financial Stability and Development Council to be set up with a view to strengthen and institutionalise the mechanism for maintaining financial stability.

- This Council would monitor macro-prudential supervision of the economy, including the functioning of large financial conglomerates, and address interregulatory coordination issues.

Banking Licences

- RBI is considering giving some additional banking licenses to private sector players. Non Banking Financial Companies could also be considered, if they meet the RBI’s eligibility criteria.

Public Sector Bank Capitalisation

- Rs.16,500 crore provided to ensure that the Public Sector Banks are able to attain a minimum 8 per cent Tier-I capital by March 31, 2011.

Recapitalisation of Regional Rural Banks (RRB)

- Government to provide further capital to strengthen the RRBs so that they have adequate capital base to support increased lending to the rural economy.

Corporate Governance

- Government has introduced the Companies Bill, 2009 in the Parliament to replace the existing Companies Act, 1956, which will address issues related to regulation in corporate sector in the context of the changing business environment.

Exports

- Extension of existing interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.

Agriculture Growth

- Government will follow a four-pronged strategy, covering

(a) Agricultural production

- Rs.400 crore provided to extend the green revolution to the eastern region of the country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and Orissa.

- Rs.300 crore provided to organise 60,000 “pulses and oil seed villages” in rain-fed areas during 2010-11 and provide an integrated intervention for water harvesting, watershed management and soil health, to enhance the productivity of the dry land farming areas.

- Rs.200 crore provided for sustaining the gains already made in the green revolution areas through conservation farming, which involves concurrent attention to soil health, water conservation and preservation of biodiversity.

(b) Reduction in wastage of produce

- Government to address the issue of opening up of retail trade. It will help in bringing down the considerable difference between farm gate, wholesale and retail prices.

- Deficit in the storage capacity met through an ongoing scheme for private sector participation - FCI to hire godowns from private parties for a guaranteed period of 7 years.

(c) Credit support to farmers

- Banks have been consistently meeting the targets set for agriculture credit flow in the past few years. For the year 2010-11, the target has been set at Rs.3,75,000 crore.

- In view of the recent drought in some States and the severe floods in some other parts of the country, the period for repayment of the loan amount by farmers extended by six months from December 31, 2009 to June 30, 2010 under the Debt Waiver and Debt Relief Scheme for Farmers.

- Incentive of additional one per cent interest subvention to farmers who repay short-term crop loans as per schedule, increased to 2% for 2010-11.

(d) Impetus to the food processing sector

- In addition to the ten mega food park projects already being set up, the Government has decided to set up five more such parks.

- External Commercial Borrowings to be available for cold storage or cold room facility, including for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat.

Infrastructure

- Rs.1,73,552 crore provided for infrastructure development which accounts for over 46 per cent of the total plan allocation.

- Allocation for road transport increased by over 13 per cent from Rs.17,520 crore to Rs.19,894 crore.

- Rs.16,752 crore provided for Railways, which is about Rs.950 crore more than last year.

Energy

- Plan allocation for power sector excluding RGGVY doubled from Rs.2230 crore in 2009-10 to Rs.5,130 crore in 2010-11.

- Government proposes to introduce a competitive bidding process for allocating coal blocks for captive mining to ensure greater transparency and increased participation in production from these blocks.

- A “Coal Regulatory Authority” to create a level playing field in the coal sector proposed to be set up.

- Plan outlay for the Ministry of New and Renewable Energy increased by 61 per cent from Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.

Environment and Climate change

- National Clean Energy Fund for funding research and innovative projects in clean energy technologies to be established.

- Rs.200 crore provided as a Special Golden Jubilee package for Goa to preserve the natural resources of the State, including sea beaches and forest cover.

- Allocation for National Ganga River Basin Authority (NGRBA) doubled in 2010-11 to Rs.500 crore.

- Schemes on bank protection works along river Bhagirathi and river Ganga-Padma in parts of Murshidabad and Nadia district of West Bengal included in the Centrally Sponsored Flood Management Programme.

Inclusive Development

- The spending on social sector has been gradually increased to Rs.1,37,674 crore in 2010-11, which is 37% of the total plan outlay in 2010-11.

- Another 25 per cent of the plan allocations are devoted to the development of rural infrastructure.

Education

- Plan allocation for school education increased by 16 per cent from Rs.26,800 cr. in 2009-10 to Rs.31,036 cr. in 2010-11.

- In addition, states will have access to Rs.3,675 crore for elementary education under the Thirteenth Finance Commission grants for 2010-11.

Health

- An Annual Health Survey to prepare the District Health Profile of all Districts shall be conducted in 2010-11.

- Plan allocation to Ministry of Health & Family Welfare increased from Rs.19,534 cr. in 2009-10 to Rs.22,300 cr. for 2010-11.

Financial Inclusion

- Appropriate Banking facilities to be provided to habitations having population in excess of 2000 by March, 2012.

- Insurance and other services to be provided using the Business Correspondent model. By this arrangement, it is proposed to cover 60,000 habitations.

- Augmentation of Rs.100 crore each for the Financial Inclusion Fund (FIF) and the Financial Inclusion Technology Fund, which shall be contributed by Government of India, RBI and NABARD.

Rural Development

- Rs.66,100 crore provided for Rural Development.

- Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme stepped up to Rs.40,100 crore in 2010-11.

- An amount of Rs.48,000 crore allocated for rural infrastructure programmes under Bharat Nirman.

- Unit cost under Indira Awas Yojana increased to Rs.45,000 in the plain areas and to Rs.48,500 in the hilly areas. Allocation for this scheme increased to Rs.10,000 crore.

- Allocation to Backward Region Grant Fund enhanced by 26 per cent from Rs.5,800 crore in 2009-10 to Rs.7,300 crore in 2010-11.

- Additional central assistance of Rs.1,200 crore provided for drought mitigation in the Bundelkhand region.

Urban Development and Housing

- Allocation for urban development increased by more than 75 per cent from Rs.3,060 crore to Rs.5,400 crore in 2010-11.

- Allocation for Housing and Urban Poverty Alleviation raised from Rs.850 crore to Rs.1,000 crore in 2010-11.

- Scheme of one per cent interest subvention on housing loan upto Rs.10 lakh, where the cost of the house does not exceed Rs.20 lakh — announced in the last Budget — extended up to March 31, 2011. Rs.700 crore provided for this scheme for the year 2010-11.

- Rs.1,270 crore allocated for Rajiv Awas Yojana as compared to Rs.150 crore last year.

Micro, Small & Medium Enterprises

- High Level Council on Micro and Small Enterprises to monitor the implementation of the recommendations of High-Level Task Force constituted by Prime Minister.

- Allocation for this sector to be increased from Rs.1,794 crore to Rs.2,400 crore for the year 2010-11.

- The corpus for Micro-Finance Development and Equity Fund doubled to Rs.400 crore in 2010-11.

Unorganised Sector

National Social Security Fund for unorganised sector workers

- National Social Security Fund for unorganised sector workers to be set up with an initial allocation of Rs.1000 crore. This fund will support schemes for weavers, toddy tappers, rickshaw pullers, bidi workers etc.

- Rashtriya Swasthya Bima Yojana benefits extended to all such Mahatma Gandhi NREGA beneficiaries who have worked for more than 15 days during the preceding financial year.

- A new initiative, “Swavalamban” will be available for persons who join New Pension Scheme (NPS), with a minimum contribution of Rs.1,000 and a maximum contribution of Rs.12,000 per annum during the financial year 2010-11, wherein Government will contribute Rs.1,000 per year to each NPS account opened in the year 2010-11. Allocation of Rs.100 crore made for this initiative.

Skill development

- National Skill Development Corporation has approved three projects worth about Rs.45 crore to create 10 lakh skilled manpower at the rate of one lakh per annum.

- An extensive skill development programme in the textile and garment sector to be launched by leveraging the strength of existing institutions and instruments of the Textile Ministry to train 30 lakh persons over 5 years.

Social Welfare

- Plan outlay for Women and Child Development stepped up by almost 50 per cent.

- “Saakshar Bharat” to further improve female literacy rate launched with a target of 7 crore non-literate adults which includes 6 crore women.

- Mahila Kisan Sashaktikaran Pariyojana to meet the specific needs of women farmers to be launched with a provision of Rs.100 crore as a sub-component of the National Rural Livelihood Mission.

- Plan outlay of the Ministry of Social Justice and Empowerment enhanced by 80 per cent to Rs.4500 crore. With this enhancement, the Ministry will be able to revise rates of scholarship under its post-matric scholarship schemes for SCs and OBC students.

Strengthening Transparency & Public Accountabilty

- Financial Sector Legislative Reforms Commission to be set up to rewrite and clean up the financial sector laws to bring them in line with the requirements of the sector.

- Rs.1,900 crore allocated to the Unique Identification Authority of India (UIDAI) for 2010-11. UIDAI will be able to meet its commitments of issuing the first set of UID numbers in the coming year

Security and Justice

- Allocation for Defence increased to Rs.1,47,344 crore including Rs.60,000 crore for capital expenditure.

- Planning Commission to prepare an integrated action plan for the thirty-three left wing extremism affected districts. Adequate funds will be made available to support the action plan.

- Government has approved the setting up of the National Mission for Delivery of Justice and Legal Reforms to help reduce legal backlog in courts from an average of 15 years at present to 3 years by 2012.

Budget Estimates 2010-11

- The Gross Tax Receipts are estimated at Rs.7,46,651 crore.

- The Non Tax Revenue Receipts are estimated at Rs.1,48,118 crore.

- The net tax revenue to the Centre as well as the expenditure provisions in 2010-11 have been estimated with reference to the recommendations of the Thirteenth Finance Commission.

- The total expenditure proposed in the Budget Estimates is Rs.11,08,749 crore, which is an increase of 8.6 per cent over last year.

- The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs.3,73,092 crore and Rs.7,35,657 crore respectively. While there is 15 per cent increase in Plan expenditure, the increase in Non Plan expenditure is only 6 per cent over the BE of previous year.

- Fiscal deficit for BE 2010-11 at 5.5 per cent of GDP, which works out to Rs.3,81,408 crore.

- Taking into account the various other financing items for fiscal deficit, the actual net market borrowing of the Government in 2010-11 would be of the order of Rs.3,45,010 crore. This would leave enough space to meet the credit needs of the private sector.

- The rolling targets for fiscal deficit are pegged at 4.8 per cent and 4.1 per cent for 2011-12 and 2012-13, respectively.

- Against a fiscal deficit of 7.8 per cent in 2008-09, inclusive of oil and fertilizer bonds, the comparable fiscal deficit is 6.9 per cent as per the Revised Estimates for 2009-10.

- Conscious effort made to avoid issuing bonds to oil and fertilizer companies. Government would like to continue with this practice of extending Government subsidy in cash, thereby bringing all subsidy related liabilities into Government’s fiscal accounting.

Direct Taxes

- Income tax slabs for individual taxpayers to be as follows:

Income upto Rs.1.6 lakh Nil

Income above Rs.1.6 lakh 10 per cent

and upto Rs.5 lakh

Income above Rs.5 lakh 20 per cent

and upto Rs.8 lakh

Income above Rs.8 lakh 30 per cent

- Deduction of an additional amount of Rs.20,000 allowed, over and above the existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure bonds as notified by the Central Government.

- Proposals on direct taxes estimated to result in a revenue loss of Rs.26,000 crore for the year.

Indirect Taxes

- Rate reduction in Central Excise duties to be partially rolled back and the standard rate on all non-petroleum products enhanced from 8 per cent to 10 per cent ad valorem.

- Some structural changes in the excise duty on cigarettes, cigars and cigarillos to be made coupled with some increase in rates. Excise duty on all non-smoking tobacco such as scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded levy scheme for chewing tobacco and branded unmanufactured tobacco based on the capacity of pouch packing machines to be introduced.

Agriculture & Related Sectors

- Provide project import status with a concessional import duty of 5 per cent for the setting up of mechanised handling systems and pallet racking systems in ‘mandis’ or warehouses for food grains and sugar as well as full exemption from service tax for the installation and commissioning of such equipment.

- Provide project import status at a concessional customs duty of 5 per cent with full exemption from service tax to the initial setting up and expansion of

o Cold storage, cold room including farm pre-coolers for preservation or storage of agriculture and related sectors produce; and

o Processing units for such produce.

- To exempt the testing and certification of agricultural seeds from service tax.

- The transportation by road of cereals, and pulses to be exempted from service tax. Transportation by rail to remain exempt.

Environment

- To build the corpus of the National Clean Energy Fund, clean energy cess on coal produced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will also apply on imported coal.

- Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par with Compact Fluorescent Lamps.

- To remedy the difficulty faced by manufacturers of electric cars and vehicles in neutralising the duty paid on their inputs and components, a nominal duty of 4 per cent on such vehicles imposed. Some critical parts or sub-assemblies of such vehicles exempted from basic customs duty and special additional duty subject to actual user condition. These parts would also enjoy a concessional CVD of 4 per cent.

Infrastructure

- Project import status to ‘Monorail projects for urban transport’ at a concessional basic duty of 5 per cent granted.

- To encourage the domestic manufacture of mobile phones accessories, exemptions from basic, CVD and special additional duties are now being extended to parts of battery chargers and hands-free headphones. The validity of the exemption from special additional duty is being extended till March 31, 2011.

Service Tax

- Rate of tax on services retained at 10 per cent to pave the way forward for GST.

- Proposals relating to service tax are estimated to result in a net revenue gain of Rs.3,000 crore for the year.

- Proposals on direct taxes estimated to result in a revenue loss of Rs.26,000 crore for the year. Proposals relating to Indirect Taxes estimated to result in a net revenue gain of Rs.46,500 crore for the year. Taking into account the concessions being given in the tax proposals and measures taken to mobilise additional resources, the net revenue gain is estimated to be Rs.20,500 crore for the year.

Tata Motors has appointed Carl-Peter Forster (left) as the Group Chief Executive Officer of the company. He will have overall responsibility of Tata Motors operations globally including Jaguar Land Rover.

India and Saudi Arabia have decided to develop joint strategies to combat challenges like terrorism and money laundering and enhance cooperation in exchange of information in this regard. In the second fortnight of February, India’s Prime Minister Dr. Manmohan Singh paid a bilateral visit to Saudi Arabia.

The most important outcome of the visit was the signing of the historic Riyadh Declaration by Prime Minister Dr. Singh and King Abdullah in which the two countries decided to raise cooperation to a strategic partnership covering security, economic, defence and political areas. In particular, both leaders emphasised the importance of strengthening the strategic energy partnership.

The two sides agreed to enhance cooperation in exchange of information relating to terrorist activities, money laundering, narcotics, arms and human traffic and develop joint strategies to combat these threats.

Brij Mohan Bansal has taken over the additional charge of the Chairman of Indian Oil Corporation Ltd., India’s largest company and the country’s leading Fortune ‘Global 500’ company. Mr. Bansal has taken over from Sarthak Behuria, whose five-year term ended in February 2010.

Rajan Bharti Mittal (right), Vice- Chairman and Managing Director of Bharti Enterprises, is the new President of the Federation of Indian Chambers of Commerce and Industry (FICCI). He succeeds Harsh Pati Singhania who is also the Managing Director of JK Paper.

An alumnus of Harvard University, Mr. Mittal is actively involved in overseeing the activities of the company at the corporate level and is also involved in many of the new business ventures of the Group.

Britain’s Prudential will buy American International Group’s Asian life insurance arm for U.S.$35.5 billion in the insurance sector’s biggest deal ever, helping the bailed-out U.S. group repay a big chunk of its taxpayer debt. The acquisition of AIA, regarded as AIG’s Asian crown jewel, increases Prudential’s already strong exposure to soaring demand for personal financial services in Southeast Asia as rapid economic growth there lifts consumer spending power, compensating for at-best sluggish growth in Britain.

India ’s exports rose an annual 11.5 per cent in January to U.S.$14.3 billion, the third consecutive rise after 13 straight months of decline. Imports rose 35.5 per cent from a year earlier to U.S.$24.7 billion.

The trade deficit stood at U.S.$10.4 billion in January compared with U.S.$5.4 billion a year earlier. Exports for April-January, the first 10 months of the 2009-10 fiscal year, were down 17.8 per cent at U.S.$131.9 billion from the same period in the previous year.

In an indication of sustained economic growth, the per capita income in Delhi has increased to Rs.78,690 in the financial year 2007-08 as against the national figure of Rs.33,283. The per capita income in the city saw an increase of Rs.8,452 over 2006-07 figures at current prices, according to the Delhi government data. Delhi’s per capita income, which indicates an average earning of a person, is the third highest in the country with Chandigarh having per capita income of Rs.1,10,676 topping the list and closely followed by Goa at Rs.1,05,582.

Top 10 Billionaires

Rank	Name	Citizenship	Age	Net Worth ($bil)	Residence
1	Carlos Slim Helú & family	Mexico	70	53.5	Mexico
2	William Gates III	United States	54	53.0	United States
3	Warren Buffett	United States	79	47.0	United States
4	Mukesh Ambani	India	52	29.0	India
5	Lakshmi Mittal	India	59	28.7	United Kingdom
6	Lawrence Ellison	United States	65	28.0	United States
7	Bernard Arnault	France	61	27.5	France
8	Eike Batista	Brazil	53	27.0	Brazil
9	Amancio Ortega	Spain	74	25.0	Spain
10	Karl Albrecht	Germany	90	23.5	Germany