Modi govt adopts flexible approach towards coronavirus epidemic

Current Affairs
After different rounds of gatherings with exporters, merchants, businesses, and different partners, the Narendra Modi government has solidified its reaction to the coronavirus pandemic.
The Center has ruled against a wide based drew nearer and will handle the issue on a case-to-case premise. Authorities have likewise precluded any rollback of import obligation climbs reported in the Union Budget. In the quick term, the Central Board of Indirect Tax and Customs (CBIC) is chipping away at facilitating clearances of products which show up without legitimate documentation.
Banks have been advised by the Center to give connect advances to organizations which have just paid to their providers in China yet lack conveyances yet. Henceforth, they are experiencing a working capital crunch, authorities said. As long as possible, the CBIC and the transportation service have been advised to anticipate times when the stockpile resumes. There is a gigantic inundation of deferred shipments coming into Indian ports.
"Our technique will be to watch and react rapidly, as we don't have the foggiest idea to what extent this emergency will last. An adaptable reaction is increasingly significant. We are persistently observing this intently," head monetary consultant Sanjeev Sanyal revealed to Business Standard.
Modi govt embraces adaptable methodology towards coronavirus plague

On Wednesday, money serve Nirmala Sitharaman said the administration was intently checking effect of the coronavirus on the economy. Sanyal said the Center was ensuring that its reaction to explicit cases was not held up by bureaucratic hurdles.These might be identifying with confirmation or leeway at ports...READ MORE

Future is green: 2020 may see re-birth of electric vehicles, say experts

Current Affairs
The year 2019 was a mix of ups and downs for the electric vehicle (EV) sales in the country. The coming year is expected to be better, with the entry of more electric cars and Chinese entities’ entry, bringing down the average cost.
The second phase of the Rs 10,000-crore scheme of the central government, termed Faster Adoption and Manufacturing for Hybrid and Electric vehicles (FAME II), offers higher incentives to higher powered products. It excludes lead acid battery-powered two-wheelers and mandates that e-scooters should have 80 km per charge and a minimum top speed of 40 kmph, with at least 50 per cent localisation in manufacturing. This has left a large share of two-wheelers out of the incentive, says CRISIL Research.
Recently, Union minister Prakash Javadekar told Parliament about 285,000 buyers of electric/hybrid vehicles had been supported by a subsidy of Rs 360 crore under FAME.
Sohinder Gill, director-general, Society of Manufacturers of Electric Vehicles (SMEV). said, “The year 2019 was full of turmoil for the EV industry. Sudden policy shock by the government in March 2019 led to a decline in sales of electric two-wheelers under FAME II. It has made companies becoming less dependent on government subsidies.”

The number of electric two-wheelers sold under FAME in the first six months of this financial year (April to September) saw a 94 per cent decline to around 3,000 units, from 48,671 units in the same period last year. The number sold without FAME incentive in the period went up to around 49,000 units, 2019, from around 10,000 during the same period last year, said SMEV.Low-speed lithium battery vehicles without the FAME incentive cost around Rs 55,000. The high-speed electric two-wheeler costs around Rs 80,000 after the incentive applied, said sources....Read More

Concessional income tax rate in traders' list of demands for Modi govt

Economy News

After successfully campaigning for Prime Minister Narendra Modi in the Lok Sabha elections, the more than 60-million traders’ community is ready with its list of demands, including a concessional income tax rate, for the new government.

Seeking a meeting with Modi, trade leader Praveen Khandelwal said they would apprise him of core issues merchants faced and ask for promises be fulfilled in the next six months.

Apart from this, there are a few other demands.

The BJP, in a bid to woo traders, made promises in its manifesto, such as a pension scheme for shopkeepers and a merchant credit card on the lines of the Kisan credit card.

“We will remind the government of all the promises. We will press for a quick implementation of these schemes by including them in the upcoming Finance Bill in July,” said Khandelwal, secretary general, Confederation of All India Traders (CAIT).

In addition, Khandelwal said they would seek a concessional income-tax rate for traders. “Being the unsaid collector of taxes for the government, we will seek a special income tax rate for trading community. There is merit in our demand,” he added.

The CAIT had declared support for the BJP and its allies in the Lok Sabha election. It said the decision was taken after analysing the election manifestos of political parties. Besides, the CAIT will press for a single licence for traders.

“Currently, traders require many licences. There should be a single licence,” he said.

Modi govt needs to review manufacturing, private sector investment

Economy News

Voters have reaffirmed faith in the leadership of Narendra Modi. His Bharatiya Janata Party (BJP) won an absolute majority on its own in the Lok Sabha. So, a stable regime will govern the country through the next few years.
The main task before the next government must be to revive the economy. Modi campaigned on the issue of national security, which cannot be ensured without a strong economy. It is now evident that domestic consumption is slowing and farm distress is real. The manufacturing sector is not growing rapidly and export growth has been tepid for five years.
Private sector investment, especially in new manufacturing projects, has been uninspiring. Corporate earnings have been rather weak, although the stock markets are booming. The flow of foreign money into equity markets has strengthened the rupee. The global trading environment is not too encouraging.
For reviving of export growth, given the context and challenges, the new government must first restore the commerce ministry’s primacy in making the new Foreign Trade Policy (FTP). In the run-up to introduction of the Goods and Services Tax (GST) and during its implementation, this ministry was completely ignored. The finance ministry focused mainly on securing consensus in the GST Council and then on re-working of the laws to address the problems thrown up during implementation. The representations of exporters were initially dismissed summarily and later heard partially. Untold misery was inflicted on a large number of exporters by the finance ministry. An ineffective and voiceless commerce ministry was a spectator.

 Now, the latter should not hesitate to take responsibility for export promotion. It should look at the opportunities the US-China trade war throws up and strive to make peace with the United States on trade issues.