Banking, Financial and Economic Awareness
1. Indian industry tries to get a single corporate tax rate of 15%
- During consultations for Budget 2020-21, India Inc tries to get a uniform corporate tax rate of 15% over three years from April 1, 2023.
- Presently, the corporate tax rate for existing firms and new manufacturing firms is 22 % and 15%, respectively.
- CII argued that the corporate tax rate of 22 % should be extended to Limited Liability Partnerships and partnership firms.
- CII also suggested further improvements in ease of doing business both at the central and state levels, increase in export competitiveness and revival of investment and growth in the private sector.
- Confederation of Indian Industry (CII):
- It is a non-government and not-for-profit organization.
- It was founded in 1895. It is led and managed by the industry. Vikram Kirloskar is its President.
- Its theme for 2019-20 is 'Competitiveness of India Inc - India@75: Forging Ahead'.
- It has recently released a report titled India’s Exports: Trends, Challenges and Future Strategy.
2. Less populated states generated maximum employment under PMEGP
- During the last four years, Tamil Nadu, Assam, Karnataka and Arunachal Pradesh generated maximum employment under PMEGP.
- Along with Uttar Pradesh, these states generated 33% of total employment created under PMEGP.
- Maharashtra, Bihar, West Bengal, and Andhra Pradesh did not appear in the list of top five states creating employment under PMEGP in the previous four years.
- According to the 2011 Census, these states come after Uttar Pradesh in terms of population.
- Prime Minister’s Employment Generation Programme (PMEGP):
- Launched in 2008, it is a credit-linked subsidy programme.
- It was launched after the merger of Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP).
- Ministry of Micro, Small and Medium Enterprises (MoMSME) administers PMEGP and Khadi and Village Industries Commission (KVIC) is a nodal agency at the national level for implementation of PMEGP.
- It aims at employment generation in rural and urban areas through the establishment of micro-enterprises.
3. New Foreign Trade Policy by April 1, 2020
- The government may launch New Foreign Trade Policy by April 1, 2020, as current Foreign Trade Policy 2015-2020 will continue till March 31, 2020.
- It may have new chapters on services and e-commerce exports.
- It may increase the export obligation period in an advance authorisation scheme, which allows duty-free import of inputs required for export products.
- During April-September 2019, India's exports and imports decreased by 2.39% and 7 % respectively.
4. Operation Twist by RBI on December 23
- In 2011-12, U.S. Federal Reserve carried out Operation Twist for making long-term borrowing cheaper.
- In a similar move, RBI will buy and sell government securities at the same time under Open Market Operations (OMO) on December 23, 2019.
- RBI will buy ₹10,000 crores of 6.45% government securities due for payment in 2029. At the same time, it will sell 10,000 crores of short-term securities due to payment in 2020.
- The simultaneous buying and selling will help lowering bond yields (returns). Higher bond yields show greater risk in an economy.
- Open Market Operation (OMO):
- It helps in regulating the money supply in an economy.
- In OMO, RBI buys and sells government securities.
- To increase the money supply, the central bank buys government securities.
- To decrease the money supply, the central bank sells government securities.